Sour, Laura (2003): Rentabilidad del gasto para la fiscalización del IVA en México: un punto de partida para la reforma administrativa del Sistema de Administración Tributaria. Published in: Revista del CLAD: Reforma y Democracia , Vol. 27, No. Oct. 2003 (October 2003)
Preview |
PDF
MPRA_paper_52186.pdf Download (417kB) | Preview |
Abstract
The low levels of tax revenues in the developing countries have limited the capacity of their governments to redistribute income, provide public goods and generate economic growth. According to Dubin, Graetz y Wilde (1990), tax revenues will increase if the government increases the enforcement spending. However, if the return of the enforcement spending is low, it might be better to increase the severity of the penalties and sanctions, since it accounts for minor costs. Therefore, only when we know the yield of the enforcement spending in terms of tax revenues we can decide to what extent it will be profitable to raise the amount of resources devoted to enforce tax compliance. This is relevant for any developing country, where the scarcity of the resources is greater than in developed countries. The paper estimates the return of the enforcement spending in terms of VAT revenues for the case of Mexico, using the model of Engel, Galetovic, y Raddatz (2001). The results are compared to the case of Chile. To our knowledge, there is no evidence of any work that has made this kind of analysis for the case of Mexico. The differences between the return of the enforcement spending in these two countries is explained by the gap in the administrative efficiency between the SII (Internal Tax System in Chile) and SAT (agency that is in charge of the tax administration in Mexico).
There is a lot to learn from the Chilean experience: at the beginning of the nineties in Chile, VAT evasion was approximately 30 percent, while at the end of the decade this rate dropped to 18.3 percent. This goal was achieved through improvements both in enforcement and in the administrative efficiency of the SII. In fact, administration expenditure as a percentage of net tax revenues in Chile, in 1998, was lower than in many other OECD countries: it accounted for 0.73 percent. The paper provides some suggestions to improve tax administration in Mexico according to the latest modifications, both in the law and in the practice, during the Fox administration. The results of this paper represent the starting point in the debate about how to construct an administrative reform to increase both SAT's internal and external efficiency.
Item Type: | MPRA Paper |
---|---|
Original Title: | Rentabilidad del gasto para la fiscalización del IVA en México: un punto de partida para la reforma administrativa del Sistema de Administración Tributaria |
English Title: | Return of the enforcement expending on VAT revenues in Mexico: a starting point for the administrative reform of the Tax Administration System |
Language: | Spanish |
Keywords: | VAT Revenues; Administrative Reform; Tax Administration System; Mexico |
Subjects: | H - Public Economics > H2 - Taxation, Subsidies, and Revenue |
Item ID: | 52186 |
Depositing User: | Dr. Laura Sour |
Date Deposited: | 12 Aug 2015 12:46 |
Last Modified: | 27 Sep 2019 19:01 |
References: | Agha, Ali y Haughton, Jonathan (1996), “Designing Vat Systems: Some Efficiency Considerations”, en The Review of Economics and Statistics, Vol. 78 No. 2, pp. 303-308. Alm, James (1999), “Tax Compliance and Administration”, en Handbook of Taxation, W. Bartley Hildreth y James A. Richardson (eds.), New York, Marcel Dekker, pp. 741-768. Andreoni, James; Erard, Brian; y Feinstein, Jonathan (1998), “Tax Compliance”, en Journal of Economic Literature, Vol. 36. Bird, R. y Casanegra de Jantscher, M. (1992), Improving Tax Administration in Developing Countries, Washington, International Monetary Fund. Das-Gupta, A. y Mookherjee, D. (1998), Incentives and Institutional Reform in Tax Enforcement: an Analysis of Developing Country Experience, Oxford, Oxford University Press. Dubin, Jeffrey A.; Graetz, Michael J.; y Wilde, Louis L. (1990), “The Effects of Audit Rates on the Federal Income Tax 1977-1986”, en National Tax Journal, Vol. 43. Engel, E.; Galetovic, Alexander; y Raddatz, Claudio (2001), “A Note on Enforcement Spending and VAT Revenue”, en The Review of Economics and Statistics, Vol. 83 N° 2. Etcheberry, Javier (2001), Chile: Servicio de Impuestos Internos (SII). Documento presentado ante la Cámara de Diputados de México, mimeo. Fox, Vicente (2001), Primer informe de gobierno: anexo, México, mimeo. Gil, Francisco y Thirsk, Wayne (1997), “Mexico’s Protracted Tax Reform”, en Tax Reform in Developing Countries, Wayne Thirsk (ed.), Washington, World Bank, pp. 287-326. Gillis, Malcom (ed.) (1989), Tax Reform in Developing Countries, Durham, Duke University Press. Kossick, Robert M., Jr. (2003), Modernizing Mexico’s Tax Administration: the Development, Implementation and Impact of the e-SAT, México, mimeo. México. Secretaría de Hacienda y Crédito Público (1980-1998), Informe de labores, México, SHCP. México. Secretaría de Hacienda y Crédito Público (1998-2000), Cuenta de la Hacienda Pública Federal, México, SHCP. Newberry, D. y Stein, N. H. (1987), The Theory of Taxation for Developing Countries, New York, Oxford University Press. OCDE (2001), Revenue Statistics of OECD Member Countries 1965-2000, Paris, OCDE. Perry, Guillermo y Herrera, Ana María (1994), Finanzas públicas, estabilización y reforma estructural en América Latina, Washington, Interamerican Development Bank. Salinas, Carlos (1994), Sexto informe de gobierno: anexo, México, mimeo Sistema de Administración Tributaria (México) (2001), Reporte Financiero, México, SAT. Shome, Parthasarathi (1992), “Trends and Future Directions in Tax Policy Reform: a Latin American Perspective”, Washington, International Monetary Fund (Working Paper). Shome, Parthasarathi (1995), Tax Policy Handbook, Washington, International Monetary Fund. Fiscal Affairs Department. Shome, Parthasarathi (1999), “Taxation in Latin America: Structural Trends and Impact of Administration”, Washington, International Monetary Fund (Working Paper). Tanzi, Vito (1990), Fiscal Policy in Open Developing Countries, Washington, International Monetary Fund. Zedillo, Ernesto (1996), Primero, tercero y sexto informe de gobierno: anexos únicos, México, mimeo. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/52186 |