Abstract

MORENO ESPINOSA, Javier; BELTRAN GODOY, Jaime Humberto  and  MATA MATA, Leovardo. Effect of economic growth and legal complexity on the Value Added Tax. Contad. Adm [online]. 2020, vol.65, n.4, 00012.  Epub Sep 13, 2021. ISSN 0186-1042.  https://doi.org/10.22201/fca.24488410e.2020.2230.

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 consensus with the existing literature, a negative effect on the VAT collection is confirmed by the increase in the legal complexity index.

Keywords : E62; C01; H30; Taxes; Economic growth; Legal complexity, VAT.

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