RELATIONSHIP BETWEEN THE PERCEPTION OF CORRUPTION AND TAX EVASION IN LATIN AMERICA
DOI:
https://doi.org/10.14392/asaa.2022150303Keywords:
Latin America, Aversion to taxes, Behavior, Corruption, Tax evasionAbstract
Objective: The research aimed to verify the implication of the level of perception of corruption, in the public sector, in tax evasion of taxes on company income in Latin American countries.
Method: With data from 10 Latin American countries, between 2011 and 2017, in a sample of 771 companies and 5006 observations, initially, in the study, the tax evasion proxy was estimated, through the book tax difference abnormal, as a result of the residue of a regressive model that considered the variables that would explain, on average, the difference between tax and accounting income. Then, the BTDA was regressed with the variables of corruption perception of the tax rate on profit required in the country.
Results: The results found indicate that society's perception of corruption in the public sector can stimulate tax evasion in companies in the face of the feeling of abandonment and social neglect and that high tax rates on profit discourage tax evasion due to the possibility of companies receiving high fines for non-payment of taxes.
Contributions: The research advances the debate on government corruption and its influence on the behavior of managers in companies, finding evidence of a direct relationship between the perception of corruption in the public sector and tax evasion in publicly traded companies in Latin American countries. These findings contribute to the understanding of the determining reasons for tax evasion practices in companies, providing explanations that clarify in a practical way how corruption in the public sector can influence the private sector.
Downloads
References
Abramo, C. W. (2005). How Far Go Perceptions?. Brasilia: Transparencia Brasil, at http://www. Transparência.org.br/docs/HowFar.pdf.
Ackerman, S R. (1978). The Economics of Corruption: a study in political economy. New York: Academic Press.
Allingham, M. G., & Sandmo, A. (1972). Income Tax Evasion: A theoretical analysis. Journal of Public Economics(1), pp. 323-328. https://doi.org/10.1016/0047-2727(72)90010-2
Araújo, J. G. N., Soeiro, T. M., Matos, F. J. S., & Bautista, D. C. G. (2020). Jeitinho brasileiro, corrupção e contabilidade. Revista Evidenciação Contábil & Finanças, 8(2). https://doi.org/10.22478/ufpb.2318-1001.2020v8n2.48165
Becker, G. S. (1999). Crime and Punishment: An Economic Approach', Journal of Political Economy. International Library of Critical Writings in Economics, 111, 141-189.
Clark, T. S., & Linzer, D. A. (2015). Should I use fixed or random effects? Political Science Research and Methods, 3(2), 399-408. https://doi.org/10.1017/psrm.2014.32
Coutinho, J. N., & Carvalho, E. R. (2003). Teoria das janelas quebradas: e se a pedra vem de dentro. Revista de Estudos Criminais, 3, 23-29.
Cross, R., & Shaw, G. K. (1982). On the economics of tax aversion. Public Finance, 37(1), 36-47.
Cruz, F. R., Paiva, A. C. V., da Cunha, J. V. A., & Neto, J. E. B. (2019). TRÊS VISÕES SOBRE ÉTICA E EVASÃO FISCAL: COMO SE POSICIONAM OS ESTUDANTES DA ÁREA DE NEGÓCIOS?. Revista universo contábil, 14(2), 82-99. http://dx.doi.org/10.4270/ruc.2018212
Da Silva Filho, G. M., Cavalcante, P. R., Bomfim, E. T., & Leite Filho, P. A. (2018). Conformidade Tributária e Comportamento do Contribuinte: uma análise dos fatores que explicam a observância tributária à luz da Teoria do Comportamento Planejado. Revista Contabilidade e Controladoria, 10(1), 54-70. http://dx.doi.org/10.5380/rcc.v10i1.51458
DeAngelo, H., & Masulis, R. W. (1980). Optimal capital structure under corporate and personal taxation. Journal of Financial Economics, 8(1), 3-29. https://doi.org/10.1016/0304-405X(80)90019-7
Desai, M. A., & Dharmapala, D. (2006). Corporate tax avoidance and high-powered incentives. Journal of financial Economics, 79(1), 145-179. https://doi.org/10.1016/j.jfineco.2005.02.002
Desai, M. A., & Dharmapala, D. (2009). Earnings Management, Corporate Tax, Shelters, and Book-Tax Alignment. 62(1), 196-186. DOI: 10.17310/ntj.2009.1.08
Engström, P., Nordblom, K., Ohlsson, H., & Persson, A. (2015). Loss evasion and tax aversion. American Economic Journal: Economic Policy, 7, 132-164. DOI: 10.1257/pol.20130134
Fávero, L. P. (2013). Dados em painel em contabilidade e finanças: teoria e aplicação. BBR-Brazilian Business Review, 10(1), 131-156.
Feldkircher, M. (2014). The determinants of vulnerability to the global financial crisis 2008 to 2009: Credit growth and other sources of risk. Journal of international Money and Finance, 43, 19-49. DOI: 10.1016/j.jimonfin.2013.12.003
Formigoni, H., Antunes, M. T., & Paulo, E. (2009). Diferença entre o Lucro Contábil e Lucro Tributável: Análise sobre o gerenciamento de resultados contábeis e gerenciamento tributário nas companhias abertas brasileiras. BBR Brazilian Business Review, 6(1), pp. 44-61.
Frank, M. M., Lynch, L. J., & Rego, S. O. (2009). Tax Reporting Aggressiveness and Its Relation to Aggressive Financial Reporting. The Accounting Review, 84(2), pp. 467-496. https://doi.org/10.2308/accr.2009.84.2.467
Fukofuka, P. (2013). The contextual framework of corporate income tax evasion. 5(2), pp. 27-37. DOI: 10.5897/JAT2013.0111
Han, L., & Kung, J. K. S. (2015). Fiscal incentives and policy choices of local governments: Evidence from China. Journal of Development Economics, 116, 89-104. DOI: 10.1016/j.jdeveco.2015.04.003
Hanlon, M., & Heitzman, S. (2010). A review of tax research. Journal of accounting and Economics, 50(2-3), 127-178. https://doi.org/10.1016/j.jacceco.2010.09.002
Hardisty, D. J., Johnson, E. J., & Weber, E. U. (2010). A Dirty Word or a Dirty World? Attribute Framing, Political Affiliation, and Query Theory. Psychological Science, 21(1), 86-92. https://doi.org/10.1177/0956797609355572
Hayashi, A. W., Nakamura, B. K., & Gamage, D. (2013). Evidence of Tax Salience and the Labor–Leisure Decision: Anchoring, Tax Aversion, or Complexity? Public Finance Review, 41(2), 203-226. https://doi.org/10.1177/1091142112460726
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3, 305-360. https://doi.org/10.1016/0304-405X(76)90026-X
Júnior Brunozi, A. C., Kronbauer, C. A., Martinez, A. L., & Alves, T. W. (2018). BTD anormais, accruals discricionários e qualidade dos accruals em empresas de capital aberto listadas no Brasil. Revista Contemporânea de Contabilidade, 15(35), 108-141. https://doi.org/10.5007/2175-8069.2018v15n35p108
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), pp. 263-291. https://doi.org/10.2307/1914185
Kallbekken, S., Kroll, S., & Cherry, T. L. (2011). Do you not like Pigou, or do you not understand him? Tax aversion and revenue recycling in the lab. Journal of Environmental Economics and Management, 62(1), 53-64. DOI:10.1016/j.jeem.2010.10.006
Kelling, G. L., & Coles, C. M. (1997). Fixing broken windows: Restoring order and reducing crime in our communities. Simon and Schuster.
Kirchler, E. (1998). Differential Representations of Taxes:Analysis of Free Associations and Judgments of Five Employment Groups. Journal of Socio-Economics, 27(1), 421-437.
Leal, M. C. H., & de Moraes, M. V. (2018). Relações entre Estado, Administração Pública e sociedade: a corrupção como fenômeno multicultural e a afetação dos direitos fundamentais. A&C-Revista de Direito Administrativo & Constitucional, 18(74), 175-192. http://dx.doi.org/10.21056/aec.v19i74.942
Lietz, G. M. (2013). Tax avoidance vs. tax aggressiveness: A unifying conceptual framework. Tax Aggressiveness: A Unifying Conceptual Framework. http://dx.doi.org/10.2139/ssrn.2363828
Martinez, A. L. (2017). Agressividade tributária: um survey da literatura. Revista de Educação e Pesquisa em Contabilidade, 11, 106-124. https://doi.org/10.17524/repec.v11i0.1724
Martinez, A. L., Francisco Filho, R., & Anunciação, E. P. (2013). Analysis of the relationship between the components of Book-Tax Differences and annual variations in. Advances in Scientific and Applied Accounting, 6(3), 396-417.
Mazar, N., Amir, O., & Ariely, D. (2008). The dishonesty of honest people: A theory of self-concept maintenance. Journal of marketing research, 45(6), 633-644. https://doi.org/10.1509/jmkr.45.6.633
Meyvis, T., Bennett, A., & Oppenaheimer, D. M. (2010). Precommitment to Charity. The Science of Giving: Experimental Approaches to the Study of Charity, pp. 35-48.
Newton, I. (1687). Philosophiae naturalis principia mathematica (Vol. 3).
Power, T. J., & Jamison, G. D. (2005). Desconfiança política na América Latina. Opinião Pública, 11(1), pp. 64-93. https://doi.org/10.1590/S0104-62762005000100003
Rubin, D. S. (2003). Janelas quebradas, tolerância zero e criminalidade. Jus Navigandi, 8.
Santos, M. A. (2016). Evasão Tributária, Probabilidade de Detecção e Escolhas Contábeis: Contabilidade Tributária: Um estudo à luz da teoria de agência. Tese (Doutoradoem Ciências Contábeis) – Programa Multi-Institucional e Inter-Regional de Pós-Graduação em Ciências Contábeis – UnB, UFPB, UFRN.
Shecaira, S. S. (2009). Tolerância zero. Revista internacional de direito e cidadania, 5, 165-176.
Silva, A. M., Braga, E. C., & Laurencel, L. C. (2009). corrupção em uma Abordagem Econômico-Contábil e o Auxílio da Auditoria como Ferramenta de Combate. Contabilidade Vista & Revista, 20(1), pp. 95-117.
Skidmore, T. E., & Smith, P. H. (2005). Modern latin america (6ª ed.). New York: Oxford University Press.
Strasser, F. A., & Santos, J. J. (2015). Teoria dos Testículos Despedaçados e da Vidraça Quebrada numa Abordagem Criítica da Operação Tolerância Zero. CONPEDI/UFS, 482-509.
Sussman, A. B., & Olivola, C. Y. (2011). Axe the tax: Taxes are disliked more than equivalent costs. Journal of Marketing Research, 48, 91-101.
Tang, T. Y. (2006). Differences, a Proxy for Earning Management and Tax Management Empirical Evidence from China. Working Paper.
Tang, T., & Firth, M. (2011). Can book–tax differences capture earnings management and tax management? Empirical evidence from China. The International Journal of Accounting, 46(2), 175-204.
Titman, S., & Wessels, R. (1988). The determinants of capital structure choice. The journal of Finance, 43(1), 1-19. https://doi.org/10.1111/j.1540-6261.1988.tb02585.x
Trading Economics (2018). Recuperado em abril, 2018, em https://tradingeconomics.com/
Transparency International (2017) Recuperado em abril, 2018, em http://www.transparency.org/cpi.
Wilson, J. Q., & Kelling, G. L. (1982). Broken windows. Atlantic monthly, 249(3), 29-38.
Wooldridge, J. M. (2002). Econometric analysis of cross section and panel data. Cambridge.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 Lauro Vinício de Almeida Lima, Vanessa Karla Rebouças da Silva, Wenner Gláucio Lopes Lucena
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Copyright for articles published in the ASAA Journal is held by the author, with first publication rights to the journal. By virtue of appearing in this publicly accessible journal, the articles are free to use, with their own attributions, in educational and non-commercial applications. The ASAA Journal will allow the use of published works for non-commercial purposes, including the right to submit the work to publicly accessible databases. Published articles are the authors' full and exclusive responsibility. There are no submission/publishing charges or fees for processing articles (APC).
