The Portfolio Investment Framework, the Principal Agent Framework and the Principal Two Agents\r\nFramework of tax evasion, individually or collectively, are inadequate to represent fairly the dynamics\r\nof corporate income tax evasion. These behavior based frameworks are for the prediction of tax\r\nevasion and their usefulness for identifying tax evasion is limited. To bridge the gap between the\r\nprediction and the identification aspects of corporate income tax evasion, this paper presents the\r\nContextual Framework of Corporate Income Tax Evasion, structured with twelve ideas and thirty five\r\ndynamics to guide and direct future research. With a simple game theory model, the paper promotes\r\nthe tax audit cut-off policy that incorporates a reward program for the agent of government, ensures\r\naudit frequency and tests independence of the agent from governance.
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