Measuring the impact of digitalization on the effects of corruption leading to tax evasion

Purpose: This study aims to examine the relationship between digitalization and tax evasion, while analyzing the moderating role of corruption in this association. \n Findings: The results reveal a negative and significant relationship between the overall digitalization score (as well as the sub-scores related to digital adoption by businesses, individuals, and governments) and tax evasion, confirming that digitalization serves as an effective tool for reducing tax fraud. However, this effect is weakened in countries with high levels of corruption, indicating that corruption limits the effectiveness of digital technologies in combating tax evasion. \n Methodology: The study is based on a sample of 115 countries. Data related to digitalization indicators, corruption, and tax evasion are obtained from the World Bank and the International Monetary Fund (IMF). Finally, the other variables are drawn from the World Bank, the Heritage Foundation, and the World Urbanization Prospects. \n Originality/Relevance: This study stands out for its comprehensive approach, which simultaneously analyzes the three dimensions of digitalization - economic, social, and administrative - while integrating corruption as a moderating variable. It thus provides an original contribution to the literature on the institutional determinants of tax evasion. From a practical perspective, the findings offer valuable implications for policymakers, demonstrating that the effectiveness of digital tax policies largely depends on reducing corruption levels. This condition appears essential to maximize the impact of digital tools in preventing fraudulent behavior and to enhance the sustainable mobilization of fiscal resources within national economies.