Firm-level determinants of business tax evasion in emerging economies: the case of Argentina

FLORENCIA PEDRONI; ANAHÍ BRIOZZO; GABRIELA PESCE

Revista Métodos cuantativos para la economía y la empresa

Universidad Pablo Olavide

Año: 2022 vol. 34 p. 83 - 117

1886-516X

Thispaper aims to identify the determinants of revenue underreporting andtheir temporal evolution from a business perspective in formal firmslocated in an emerging country with high inflation (Argentina). Wepropose a conceptual model and we estimate it empirically using alogistic regression based on pooled data 2010-2017 of the World BankEnterprise Surveys. The findings show that revenue underreporting isa multicausal phenomenon where taxes lose importance in the light ofother determinants such as: corruption, regulation and bureaucracy,quality of public and government services, detection probability,sector informality, and political instability. Moreover, the outcomesrecognize companies? characteristics with a greater propensity tounderreport sales (smaller size, selling in domestic market, frommanufacturing sector, without external financing, with maleentrepreneurs). Our empirical evidence is relevant for theformulation of public policies aimed at reducing revenueunderreporting.p { margin-bottom: 0.21cm; direction: ltr; line-height: 115%; text-align: left; orphans: 2; widows: 2 }p.western { font-family: "Calibri", serif; font-size: 11pt }p.cjk { font-family: "Calibri"; font-size: 11pt; so-language: en-US }p.ctl { font-family: "Times New Roman"; font-size: 11pt }a:link { color: #0563c1 }