Exploring determinants of VAT gaps using structural equation models: a MIMIC approach

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F24%3A43926081" target="_blank" >RIV/62156489:43110/24:43926081 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.17979/ejge.2024.13.2.9940" target="_blank" >https://doi.org/10.17979/ejge.2024.13.2.9940</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.17979/ejge.2024.13.2.9940" target="_blank" >10.17979/ejge.2024.13.2.9940</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Exploring determinants of VAT gaps using structural equation models: a MIMIC approach

Popis výsledku v původním jazyce

This study explores the estimation of the VAT gap using the Multiple Indicators and Multiple Causes (MIMIC) model, a specific type of structural equation model. The VAT gap, a significant indicator of tax revenue loss and inefficiency in VAT collection, is treated as a latent variable driven by various causes and reflected through specific indicators. Drawing on data from European countries, the model incorporates variables such as economic openness, government spending, corruption perceptions, and the e-government development index, each serving as proxies for underlying VAT collection challenges. This study presents a first-time application of the MIMIC model to the Czech Republic, estimating the VAT gap of 2003 - 2020 and revealing fluctuations between 27 % and 35 % of total tax liability, with stabilization at 31 % since 2016. The findings underscore policy areas for potential improvements in VAT compliance and collection efficiency, particularly through enhanced digitalization efforts and governance quality in tax administration by highlighting key factors contributing to the VAT gap.

Název v anglickém jazyce

Exploring determinants of VAT gaps using structural equation models: a MIMIC approach

Popis výsledku anglicky

This study explores the estimation of the VAT gap using the Multiple Indicators and Multiple Causes (MIMIC) model, a specific type of structural equation model. The VAT gap, a significant indicator of tax revenue loss and inefficiency in VAT collection, is treated as a latent variable driven by various causes and reflected through specific indicators. Drawing on data from European countries, the model incorporates variables such as economic openness, government spending, corruption perceptions, and the e-government development index, each serving as proxies for underlying VAT collection challenges. This study presents a first-time application of the MIMIC model to the Czech Republic, estimating the VAT gap of 2003 - 2020 and revealing fluctuations between 27 % and 35 % of total tax liability, with stabilization at 31 % since 2016. The findings underscore policy areas for potential improvements in VAT compliance and collection efficiency, particularly through enhanced digitalization efforts and governance quality in tax administration by highlighting key factors contributing to the VAT gap.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

European Journal of Government and Economics

ISSN

2254-7088

e-ISSN

2254-7088

Svazek periodika

13

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

ES - Španělské království

Počet stran výsledku

17

Strana od-do

189-205

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85211591120