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VAT Gap Dependence and Fiscal Administration Measures

Author

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  • Lešnik Tomaž

    (Financial Administration of the Republic of Slovenia, Slovenia)

  • Jagrič Timotej

    (University of Maribor, Faculty of Economics and Business, Slovenia)

  • Jagrič Vita

    (University of Maribor, Faculty of Economics and Business, Slovenia)

Abstract

The paper examines the VAT gap estimated on the basis of VAT tax returns. The assessment of tax gap dependence is examined based on macroeconomic influences and the measures of the Slovenian fiscal administration. Regarding the latter, the number of audits being performed and the effects of audit activity (tax yield) have been considered. The results of the analysis support the thesis that the tax gap is reduced in conditions of economic growth. The fiscal administration measures showed the desired effect. An important factor lowering the gap was proven to be the number of (VAT) audits. A similar impact on the tax gap, although considerably smaller, was found to have effects of an audit. Audit planning might be considered as guidance for fiscal policies to lower the tax gap.

Suggested Citation

  • Lešnik Tomaž & Jagrič Timotej & Jagrič Vita, 2018. "VAT Gap Dependence and Fiscal Administration Measures," Naše gospodarstvo/Our economy, Sciendo, vol. 64(2), pages 43-51, June.
    • Handle: RePEc:vrs:ngooec:v:64:y:2018:i:2:p:43-51:n:5
    DOI: 10.2478/ngoe-2018-0011
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    References listed on IDEAS

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    More about this item

    Keywords

    tax gap; VAT; tax gap dependence;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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