IDEAS home Printed from https://ideas.repec.org/a/aiy/jnljtr/v5y2019i3p249-264.html
   My bibliography  Save this article

Sector-Specific Characteristics of Tax Crime in Russia

Author

Listed:
  • Anna P. Kireenko
  • Ekaterina N. Nevzorova
  • Dmitry Yu. Fedotov

Abstract

The article discusses the hypothesis that fiscal crime has some sector-specific characteristics, which tend to become more pronounced as new technologies emerge and develop. These characteristics should be taken into account when devising policies targeted at fighting tax evasion. To test this hypothesis, we analyzed quantitative (the level of economic crime in Russia in general and for different types of economic activity) and qualitative characteristics of crime (structure, dynamics and nature of crime). We also conducted analysis of the correlation between these indicators and the structure of costs and financial performance of organizations. The research relies on crime statistics, which reflect the scale of tax evasion better than financial statistics (since the latter are influenced by a large number of factors and are subject to significant change even within one year). Pearson’s and Spearman’s correlation coefficients were used for verification. Sectors of economy were ranked in descending order according to the corresponding economic crime rates and loss to gross value added in the sector. The findings show that unlike the cases of tax evasion, the number of economic crimes does not closely correlate with the structure of costs. Most tax crimes and corporate tax evasion in particular are recorded in sectors with lower labour costs, social security contributions and other prime costs but with higher depreciation of fixed assets (capital intensive industries). Thus, the results of this study contradict the findings of international scholars that shadow economy is larger in highest paying industries. It is shown that the sectors with higher losses are characterized by higher crime rates, that is, the loss in many cases is connected to tax evasion and related economic crime. The research has brought to light certain sector-specific characteristics of tax evasion, which means that these characteristics should be taken into account in governance and policy-making as well as in further research on this topic

Suggested Citation

  • Anna P. Kireenko & Ekaterina N. Nevzorova & Dmitry Yu. Fedotov, 2019. "Sector-Specific Characteristics of Tax Crime in Russia," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 5(3), pages 249-264.
    • Handle: RePEc:aiy:jnljtr:v:5:y:2019:i:3:p:249-264
    DOI: http://dx.doi.org/10.15826/jtr.2019.5.3.071
    as

    Download full text from publisher

    File URL: https://jtr.urfu.ru/fileadmin/user_upload/site_15907/main/Kireenko_et_al-2019.pdf
    Download Restriction: no
    File URL: https://libkey.io/http://dx.doi.org/10.15826/jtr.2019.5.3.071?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    2. Amedeo Argentiero & Bruno Chiarini & Elisabetta Marzano, 2020. "Does Tax Evasion Affect Economic Crime?," Fiscal Studies, John Wiley & Sons, vol. 41(2), pages 441-482, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yu.E. Labunets & I.A. Mayburov, 2020. "Relationship of Tax Burden and Firm Size in the Timber Industry in Russia," Journal of Applied Economic Research, Graduate School of Economics and Management, Ural Federal University, vol. 19(4), pages 458-487.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Amedeo Argentiero & Sandro Casal & Luigi Mittone & Azzurra Morreale, 2021. "Tax evasion and inequality: some theoretical and empirical insights," Economics of Governance, Springer, vol. 22(4), pages 309-320, December.
    2. Chiarini Bruno & Ferrara Maria & Marzano Elisabetta, 2024. "Noncompliant behaviors in general equilibrium: A survey," Journal of Economic Surveys, Wiley Blackwell, vol. 38(3), pages 931-955, July.
    3. Raffaella Coppier & Elisabetta Michetti & Luisa Scaccia, 2022. "Industrial structure and evasion dynamics, is there any link?," Metroeconomica, Wiley Blackwell, vol. 73(4), pages 960-986, November.
    4. Taliercio, Robert Jr., 2004. "Administrative Reform as Credible Commitment: The Impact of Autonomy on Revenue Authority Performance in Latin America," World Development, Elsevier, vol. 32(2), pages 213-232, February.
    5. Torgler, Benno & Schneider, Friedrich & Schaltegger, Christoph A., 2007. "With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy," Berkeley Olin Program in Law & Economics, Working Paper Series qt6331x6vz, Berkeley Olin Program in Law & Economics.
    6. Puklavec, Žiga & Kogler, Christoph & Stavrova, Olga & Zeelenberg, Marcel, 2023. "What we tweet about when we tweet about taxes: A topic modelling approach," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 1242-1254.
    7. Antonio Acconcia & Marcello D'Amato & Riccardo Martina, 2003. "Corruption and Tax Evasion with Competitive Bribes," CSEF Working Papers 112, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    8. Cyril Chalendard, 2015. "Use of internal information, external information acquisition and customs underreporting," Working Papers halshs-01179445, HAL.
    9. Arun Advani & William Elming & Jonathan Shaw, 2023. "The Dynamic Effects of Tax Audits," The Review of Economics and Statistics, MIT Press, vol. 105(3), pages 545-561, May.
    10. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    11. Fábio Pereira Silva & Reinaldo Guerreiro & Eduardo Flores, 2019. "Voluntary versus enforced tax compliance: the slippery slope framework in the Brazilian context," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 66(2), pages 147-180, June.
    12. Friedrich Heinemann & Martin Kocher, 2013. "Tax compliance under tax regime changes," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(2), pages 225-246, April.
    13. Mattos, Enlinson & Rocha, Fabiana & Toporcov, Patricia, 2013. "Programas de incentivos fiscais são eficazes? Evidência a partir da avaliação do impacto do programa nota fiscal paulista sobre a arrecadação de ICMS," Revista Brasileira de Economia - RBE, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil), vol. 67(1), April.
    14. Marie Bjørneby & Annette Alstadsæter & Kjetil Telle, 2018. "Collusive tax evasion by employers and employees. Evidence from a randomized fi eld experiment in Norway," Discussion Papers 891, Statistics Norway, Research Department.
    15. Montalvo, José G. & Piolatto, Amedeo & Raya, Josep, 2020. "Transaction-tax evasion in the housing market," Regional Science and Urban Economics, Elsevier, vol. 81(C).
    16. Goerke, Laszlo, 2013. "Relative consumption and tax evasion," Journal of Economic Behavior & Organization, Elsevier, vol. 87(C), pages 52-65.
    17. Jiao Li & Duccio Gamannossi degl'Innocenti & Matthew D. Rablen, 2023. "Marketed tax avoidance: an economic analysis," Scandinavian Journal of Economics, Wiley Blackwell, vol. 125(3), pages 753-788, July.
    18. John E. Anderson, 2014. "Informal Payments to the Tax Collector in Transition Countries," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 3(2), pages 1-26, May.
    19. Roberto Dell'Anno & Adalgiso Amendola, 2008. "Istituzioni, Diseguaglianza ed Economia Sommersa: quale relazione?," Quaderni DSEMS 24-2008, Dipartimento di Scienze Economiche, Matematiche e Statistiche, Universita' di Foggia.
    20. Christoph Engel & Luigi Mittone & Azzurra Morreale, 2024. "Outcomes or participation? Experimentally testing competing sources of legitimacy for taxation," Economic Inquiry, Western Economic Association International, vol. 62(2), pages 563-583, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aiy:jnljtr:v:5:y:2019:i:3:p:249-264. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalia Starodubets (email available below). General contact details of provider: https://edirc.repec.org/data/seurfru.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.