November 21, 2019
12:00pm - 1:00pm
George Mason University, Arlington Campus, Van Metre Hall, Room 322
November 21, 2019
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Please join us Thursday, November 21st on the Arlington Campus in Van Metre Hall, room 322 from noon to 1 PM. Anh Pham will present "Impact of Local Public-Sector Corruption on Business Tax Registration and Compliance: Evidence from Vietnam."
Abstract: This paper studies how corruption affects two distinct but related dimensions of firm tax compliance activities - possession of a valid tax identification (tax ID) and size of the payment (tax liabilities/revenue). We explore a novel census covering all Vietnamese household businesses and the border discontinuities in provincial corruption index scores. Comparing household businesses located in all contiguous commune-pairs that straddle a provincial border, we find that a one-standard-deviation increase in corruption increases the probability of household businesses having registered for tax IDs by 15 percent. Additionally, businesses that are more visible -- those that have more workers or operate more hours per day -- are less likely to possess tax IDs in a more corrupt environment than businesses that are less visible. Using a sample of firms that answer questions about tax liabilities, we find that a one-standard-deviation increase in corruption is associated with a 15 percent decrease in the business' tax liabilities/revenue ratio among firms that have tax IDs, implying a decrease in tax compliance activities in this group. Finally, among all businesses (including the ones with and without tax IDs), we do not find evidence that corruption increases the business' tax liabilities/revenue ratio, implying no increase in the overall tax revenue as a result of corruption.
WebEx will be steamed to the Johnson Center, Room 311D on the Fairfax Campus. Login information is as follows:
Meeting number: 314 009 154
For additional information, please contact Caroline Wesson (firstname.lastname@example.org)