IDEAS home Printed from
   My bibliography  Save this article

A comparative analysis of the factors of tax evasion in Ukraine and USA


  • N. Frolova


The purpose of the article is to reveal effects on the individual's tax compliance, to examine weak points of tax legislation of Ukraine that may induce tax evasion, and to develop recommendations for the improvement of Ukraine's tax system in terms of minimization of tax evasion, in particular, by introducing comprehensive tax reporting. The article presents the findings of various theoretical and empiric investigations by leading domestic and foreign experts on the issues of estimation and detection of tax evasion. Generalization of the basic factors predetermining is based on the conclusions of the theory of subjective expected utility, institutional theory, as well as the results of analysis of a simple static model. Considerable attention is given to the analysis of tax evasion effects on the economic growth as long as it dis-torts tax burden distribution and income redistribution, and aggravates imperfect competition. Advantages of comprehensive tax reporting are justified in terms of the facilitation of the detection of tax evasion and counteraction to its emergence in the future. Based on USA experience, it is stated that the efficiency of this measure increases with certain incentives (such as tax abatements, credits, tax deductions and other tax allowances), which encourage voluntary reporting of the tax payers. However, according to the analysis of domestic tax legislation, such incentives are almost absent in Ukraine, and tax deductions are applied with considerable limitations. Consequently, basic directions for subsequent tax reform in Ukraine are outlined and recommendations to improve income tax are developed. Such recommendations include dropping restrictions on the application of social tax allowance, and expansion of the list of expenditures that can be deducted from taxable income.

Suggested Citation

  • N. Frolova, 2014. "A comparative analysis of the factors of tax evasion in Ukraine and USA," Economy and Forecasting, Valeriy Heyets, issue 3, pages 148-156.
  • Handle: RePEc:eip:journl:y:2014:i:3:p:148-156

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    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:eip:journl:y:2014:i:3:p:148-156. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iryna Bazhal). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.