Wikipedia does not have an article with this exact kroll global fraud report 2015 pdf. Wikipedia:Why was the page I created deleted? Why was the page I created deleted?
10 Percent Legacy and Succession Duty Impressed Duty Stamp. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned, or overstating deductions. The “Big 7” shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland. Sandmo produced, in 1972, an economic model of tax evasion. This model deals with the evasion of income tax, the main source of tax revenue in developed countries. According to the authors, the level of evasion of income tax depends on the detection probability and the level of punishment provided by law. The literature’s theoretical models are elegant in their effort to identify the variables likely to affect non-compliance.
Alternative specifications, however, yield conflicting results concerning both the signs and magnitudes of variables believed to affect tax evasion. Empirical work is required to resolve the theoretical ambiguities. In a 2017 study Alstadsæter et al. 10 times more likely than average people to engage in tax avoidance. Customs duties are an important source of revenue in developing countries. When there is ad valorem import duty, the tax base can be reduced through underinvoicing. Misdeclaration of quantity is more relevant for products with specific duty.
Smuggling is resorted to for total evasion of customs duties, as well as for the importation of contraband. A smuggler does not have to pay any customs duty since smuggled products are not routed through customs-tax compliant customs ports, and are therefore not subjected to declaration and, by extension, to the payment of duties and taxes. He estimated that global tax evasion amounts to 5 percent of the global economy. Producers who collect VAT from consumers may evade tax by under-reporting the amount of sales.
In addition, most jurisdictions which levy a VAT or sales tax also legally require their residents to report and pay the tax on items purchased in another jurisdiction. This means that consumers who purchase something in a lower-taxed or untaxed jurisdiction with the intention of avoiding VAT or sales tax in their home jurisdiction are technically breaking the law in most cases. Therefore, it is not generally cost-effective to enforce tax collection on low-value goods carried in private vehicles from one jurisdiction to another with a different tax rate. However, sub-national governments will normally seek to collect sales tax on high-value items such as cars.