Corporate tax evasion and government persuasion: a comment on a fiscal measure

Abstract

O objectivo deste texto é o de analisar a situação fiscal das empresas portuguesas relativamente ao imposto sobre o rendimento (IRC). Argumenta-se que a percepção de uma elevada fuga fiscal nas pequenas empresas levou o governo a introduzir, em 1998, um mecanismo de persuasão para tentar aumentar as receitas. As estatísticas do IRC relativas a 1998 mostram que a medida não teve o efeito desejado, o que explica o recurso a uma nova política de tributação das pequenas empresas consagrada no Orçamento de Estado para 2001.

Ce texte se propose d'analyser la situation fiscale des entreprises portugaises en ce qui concerne l'impôt sur le revenu (IRC). On argumente que la prise de conscience d'une évasion fiscale élevée dans les petites entreprises a contraint le gouvernement d'introduire, en 1998, un mécanisme de persuasion afin de tenter d'augmenter les recettes. Les statistiques concernant l'IRC, pour l'année 1998, montrent que les mesures prises n'ont pas eu l'effet escompté, ce qui explique le recours à une nouvelle politique d'imposition des petites entreprises, laquelle se trouve consacrée par le budget de l'Etat pour l'année 2001.

The purpose of this paper is to discuss a tax measure introduced in December of 1998 by the Portuguese tax authorities, its consequences on corporate taxpaying behaviour and a new policy introduced in the State Budget for 2001. In 1998, a kind of persuasive legislation to influence entities subject to the corporate income tax was established, as it would result in auditing if taxable profits less than their sectoral average, computed for the period 1994-1996, were reported in 1998. Looking at statistics of tax receipts of 1998, the paper debates the impact of the aforementioned tax measure in the corporate income tax and, finally, a different approach to the taxation of income of small corporations - inserted in the State Budget of 2001 - is highlighted.