VAT thresholds and tax assessment: evidence from Taiwan. Issue 10 (7th June 2023)

• Record Type: Journal Article
• Authors: Wu, Da-Kai; Chen, Joe; Huang, Shih-Chang
• Is Part Of: Applied economics letters. Volume 30:Issue 10(2023)
• Page Start: 1314
• Page End: 1317
• Publication Date: 2023-06-07
• Subjects: Value-added tax -- tax assessment -- thresholds -- Taiwan; H25 -- H26 -- H32; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2022.2053045
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: Based on a dataset from the unique two-tier VAT (value-added tax) thresholds in Taiwan, this paper suggests that poor assessment of the sales of business entities by the competent tax authority has brought about severe underestimates of the amount of sales. It has resulted in a shortfall of tax revenue from small business entities and underscores the importance of tax enforcement.