Abstract
This work is aimed to determine the impact of economic growth and the legal complexity of the Value-Added Tax Act (LIVA, in Spanish) in the VAT collection between 1980 and 2016. This analysis is based on an ordinary least squares model transformed using the Box-Cox methodology. The results reveal a positive relation between economic growth and VAT collection, and a negative relation between the legal complexity index and VAT collection. It is suggested to extrapolate this analysis of the effects of legal reforms on the collection of other taxes, because a negative effect may be generated by the modifications made by increasing the complexity of tax laws and reducing the understanding of the tax payers. In line with the existing literature, a negative effect on the VAT collection is confirmed by the increase in the legal complexity index.
Original language | Spanish |
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Journal | Contaduria y Administracion |
Volume | 65 |
Issue number | 4 |
DOIs | |
State | Published - 1 Jan 2020 |