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Tax arrears and VAT revenue performance: Recent evidence from Greece

Author

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  • Athanasios O. Tagkalakis

    (Bank of Greece)

Abstract

Using regional data on VAT revenue collection over the period 2006-2011, we find that an increase in VAT-related tax arrears and uncollected (VAT related) fines reduce tax compliance and consequently result in lower VAT revenue. These findings are very important at the current juncture for Greece because they show that improvements in tax revenue administration and tax enforcement mechanisms can deter tax evasion, increase tax revenues and contribute to the on-going fiscal consolidation effort.

Suggested Citation

  • Athanasios O. Tagkalakis, 2014. "Tax arrears and VAT revenue performance: Recent evidence from Greece," Economics Bulletin, AccessEcon, vol. 34(2), pages 1141-1155.
    • Handle: RePEc:ebl:ecbull:eb-14-00137
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    References listed on IDEAS

    as
    1. Tagkalakis, Athanasios O., 2013. "Audits and tax offenders: Recent evidence from Greece," Economics Letters, Elsevier, vol. 118(3), pages 519-522.
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    4. Nikolaos Artavanis & Adair Morse & Margarita Tsoutsoura, 2015. "Tax Evasion across Industries: Soft Credit Evidence from Greece," NBER Working Papers 21552, National Bureau of Economic Research, Inc.
    5. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    6. Keen, Michael & Smith, Stephen, 2006. "VAT Fraud and Evasion: What Do We Know and What Can Be Done?," National Tax Journal, National Tax Association;National Tax Journal, vol. 59(4), pages 861-887, December.
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    More about this item

    Keywords

    taxation; VAT; arrears; compliance.;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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