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Fiscalité et secteur informel au Sénégal
[Informal sector and tax compliance in Senegal]

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  • Diagne, Youssoupha S
  • Thiaw, Kalidou

Abstract

This paper deals with informal firms’ behavior regarding tax registration and compliance. Data from the Investment Climate Assessment (ICA) survey in Senegal, conducted by the World Bank in 2004, were used within a microeconometric framework. Results reveal that taxes owed by unregistered firms are relatively low, roughly amounting to 3% of their returns. The study also shows that visibility indicators, information, as well as tax control and firms’ assessment of the Government’s fiscal policy are likely to increase the probability of tax registration. However such variables as education, age, the tax rate, size and the turnover indicate a behavior close to anticipation and profit maximization.

Suggested Citation

  • Diagne, Youssoupha S & Thiaw, Kalidou, 2008. "Fiscalité et secteur informel au Sénégal [Informal sector and tax compliance in Senegal]," MPRA Paper 54867, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:54867
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    File URL: https://mpra.ub.uni-muenchen.de/54867/1/MPRA_paper_54867.pdf
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    References listed on IDEAS

    as
    1. Jonathan S. Feinstein, 1991. "An Econometric Analysis of Income Tax Evasion and its Detection," RAND Journal of Economics, The RAND Corporation, vol. 22(1), pages 14-35, Spring.
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    3. Bardsley, Peter, 1996. "Tax Compliance Games with Imperfect Auditing," Public Finance = Finances publiques, , vol. 51(4), pages 473-489.
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    6. Swaminathan, M., 1991. "Understanding the "Informal Sector": A Survey," Research Paper 95, World Institute for Development Economics Research.
    7. repec:dau:papers:123456789/4929 is not listed on IDEAS
    8. McKenzie, David & Seynabou Sakho, Yaye, 2010. "Does it pay firms to register for taxes? The impact of formality on firm profitability," Journal of Development Economics, Elsevier, vol. 91(1), pages 15-24, January.
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    Cited by:

    1. Abate Andre Modeste & Fouda Ongodo Maurice & Pene Zongabiro Nina Pelagie, 2017. "The Strategies of Staging the Choices of Degrees of Formalization of Business Activities in Cameroon," Applied Economics and Finance, Redfame publishing, vol. 4(6), pages 53-63, November.

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    More about this item

    Keywords

    informal sector; Principal-Agent model; tax evasion;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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