Tax evasion vs. control mechanisms implemented by public administration

Abstract

Tax evasion is considered a worrying phenomenon for the Ecuadorian State, because despite the efforts made by the Internal Revenue Service to strengthen controls to reduce the level  of  evasion  and  to  strengthen  the  processes  aimed  at  increasing  the  collection,  still  these objectives can not be achieved. The present study was developed with the purpose of determining the percentage of evasion of the income tax on natural persons not required to keep accounts in the city of Guayaquil and were identified the reasons that lead taxpayers to commit evasion, this study will serve to the Tax Administration to rethink about the strategies  that  motivate  taxpayers  to  fulfill  their  formal  duties  in  tax  matters.  The  research  was conducted under a quantitative approach. The results showed that 38.9% of taxpayers still evade taxes.