Abstract

HERBAS-TORRICO, Boris Christian  and  GONZALES-ROCHA, Erick Ariel. An analysis of causes for tax compliance and tax evasion: Evidence from Bolivia. Perspectivas [online]. 2020, n.46, pp.119-184. ISSN 1994-3733.

Despite a significant increase in tax collection in recent years, Bolivia's tax evasion is still high and affects the sustainability of economic growth. Currently, there are no studies that simultaneously analyze the causes for tax compliance and tax evasion. Our research suggests that cultural, institutional, and moral factors simultaneously influence tax compliance and evasion among Bolivian citizens. Specifically, our research collected data from taxpayers in Cochabamba. Then, applying a structural equations modeling, results indicate that tax morality is the most important predictor of tax evasion while trust in public institutions is the most important predictor of tax compliance. As a result, to increase tax collection and reduce tax evasion attention should be paid to: (i) increasing trust in public institutions, (ii) implementing tax education policies, and (iii) increasing transparency in the use of public resources.

Keywords : Tax compliance; Tax evasion; Cultural dimension; Tax morality; Trust in public institutions.

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