Public policies and tax evasion: evidence from SAARC countries

Islam, Azharul and Rashid, Md. Harun Ur and Hossain, Syed Zabid and Hashmi, Rubayyat ORCID: https://orcid.org/0000-0002-5953-0650 (2020) Public policies and tax evasion: evidence from SAARC countries. Heliyon, 6 (11):e05449.

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Abstract

In compliance with the socioeconomic theory, the study has strived to investigate the impact of economic and non-economic public policies on tax evasion using panel data of 7 SAARC countries covering the period from 1998 to 2015. The study has applied the ordinary least square with fixed effect and random effect models to analyze the data assembled. The result of the study implies that the higher the degree of economic freedoms, the lower the tax evasion. More specifically, the government policies about property rights, monetary freedom, fiscal freedom and investment freedom have a negative influence on taxpayers' choices of tax evasion while financial freedom result shows a positive effect on tax evasion. Additionally, there is a negative impact of public sector governance and religiosity on tax evasion, which implies the higher the public sector governance and the higher the religious faith amid the people, the lower the degree of tax evasion. The findings of the study are supposed to offer the governments, tax authorities, and research scholars the valuable insights into public policies for reducing the tax evasion to a significant extent.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Published version made available under an Attribution-NonCommercial-NoDervatives 4.0 license.
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Current - Institute for Resilient Regions - Centre for Health Research (1 Apr 2020 -)
Date Deposited: 07 May 2021 05:53
Last Modified: 31 May 2021 01:29
Uncontrolled Keywords: tax evasion, public policies, economic freedom, good governance, religiosity, SAARC countries, economics, public finance, accounting, macroeconomics, business policy
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140215 Public Economics-Taxation and Revenue
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380115 Public economics - taxation and revenue
Identification Number or DOI: https://doi.org/10.1016/j.heliyon.2020.e05449
URI: http://eprints.usq.edu.au/id/eprint/41939

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