A report on Tax noncompliance

The ratio of German assets in tax havens in relation to the total German GDP. Havens in countries with tax information sharing allowing for compliance enforcement have been in decline. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.
Tax campaigner Richard Murphy's estimate of the ten countries with the largest absolute levels of tax evasion. He estimated that global tax evasion amounts to 5 percent of the global economy.
Poster issued by the British tax authorities to counter offshore tax evasion.
HMRC estimated tax gaps 2005-2019

Range of activities that are unfavorable to a government's tax system.

- Tax noncompliance
The ratio of German assets in tax havens in relation to the total German GDP. Havens in countries with tax information sharing allowing for compliance enforcement have been in decline. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.

6 related topics with Alpha

Overall
Avoiding the window tax in England

Tax avoidance

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Legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.

Legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.

Avoiding the window tax in England
Countries with politicians, public officials or close associates implicated in the Panama Papers leak on 15 April 2016

Both tax evasion and some forms of tax avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that are unfavourable to a state's tax system.

The ratio of German assets in tax havens in relation to the total German GDP, 1996–2008. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.

Tax evasion

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Illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others.

Illegal attempt to defeat the imposition of taxes by individuals, corporations, trusts, and others.

The ratio of German assets in tax havens in relation to the total German GDP, 1996–2008. The "Big 7" shown are Hong Kong, Ireland, Lebanon, Liberia, Panama, Singapore, and Switzerland.
Tax campaigner Richard Murphy's estimate of the ten countries with the largest absolute levels of tax evasion. He estimated that global tax evasion amounts to 5 percent of the global economy.
The size of the shadow economy in Europe, 2011.
A "Lion's Mouth" postbox for anonymous denunciations at the Doge's Palace in Venice, Italy. Text translation: "Secret denunciations against anyone who will conceal favors and services or will collude to hide the true revenue from them."
Poster issued by the British tax authorities to counter offshore tax evasion.

Both tax evasion and tax avoidance can be viewed as forms of tax noncompliance, as they describe a range of activities that intend to subvert a state's tax system, but such classification of tax avoidance is disputable since avoidance is lawful in self-creating systems.

Total revenue from direct and indirect taxes given as share of GDP in 2017

Tax

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Compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.

Compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national), and tax compliance refers to policy actions and individual behaviour aimed at ensuring that taxpayers are paying the right amount of tax at the right time and securing the correct tax allowances and tax reliefs.

Total revenue from direct and indirect taxes given as share of GDP in 2017
Pieter Brueghel the Younger, The tax collector's office, 1640
Substitution effect and income effect with a taxation on y good.
Budget's constraint shift after an introduction of a lump sum tax or a general tax on consumption or a proportional income tax.
The Laffer curve. In this case, the critical point is at a tax rate of 70%. Revenue increases until this peak, then it starts decreasing.
General government revenue, in % of GDP, from social contributions. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 20% by social contributions revenue.
Egyptian peasants seized for non-payment of taxes. (Pyramid Age)
Public finance revenue from taxes in % of GDP. For this data, the variance of GDP per capita with purchasing power parity (PPP) is explained in 32% by tax revenue.
Diagram illustrating deadweight costs of taxes

The first known taxation took place in Ancient Egypt around 3000–2800 BC. A failure to pay in a timely manner (non-compliance), along with evasion of or resistance to taxation, is punishable by law.

Gandhi making salt and disobeying the British salt production and tax laws.

Tax resistance

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Refusal to pay tax because of opposition to the government that is imposing the tax, or to government policy, or as opposition to taxation in itself.

Refusal to pay tax because of opposition to the government that is imposing the tax, or to government policy, or as opposition to taxation in itself.

Gandhi making salt and disobeying the British salt production and tax laws.
Egyptian peasants seized for non-payment of taxes during the Pyramid Age.
Boston Tea Party, 16 December 1773.
Henry David Thoreau, author of Civil Disobedience.
The White House Peace Vigil, started by Thomas in 1981 and supported by tax resister Ellen Thomas.

Because taxation is often oppressive, governments have always struggled with tax noncompliance and resistance.

HM Revenue and Customs

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Non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers.

Non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support, the administration of other regulatory regimes including the national minimum wage and the issuance of national insurance numbers.

Headquarters are at 100 Parliament Street, Westminster
Logo of HMRC until 2013
HMRC estimated tax gaps 2005/6-2018/19 (the difference between the amount of tax that should, in theory, be collected by HMRC, against what is actually collected.)

It estimated that total theoretical tax liabilities in that year were £629 billion, but £31 billion was not collected due to the "tax gap", made up of money lost to tax evasion, tax avoidance, error and unpaid tax debts.

Tax protester

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Someone who refuses to pay a tax claiming that the tax laws are unconstitutional or otherwise invalid.

Someone who refuses to pay a tax claiming that the tax laws are unconstitutional or otherwise invalid.

The Criminal Investigation (CI) division of the Internal Revenue Service investigates reports of violations of the federal criminal tax statutes, including tax evasion under, willful failure to file tax returns or pay tax under , willful filing of false returns under , and violations of other statutes, and refers tax cases to the Tax Division of the U.S. Department of Justice for prosecution.