Evaluating the Critical Factors of Tax Evasion in Business Tax Using a Novel Network Decision Support Model

Abstract

This study developed an expert network evaluation framework to assess the critical factors contributing to tax evasion in business tax. First, the framework established a network comprising three perspectives and fifteen indicators through the modified Delphi method (MDM). Then, the analytic network process (ANP) was applied to determine the relative weights of the evaluative criteria. Finally, the application of the framework ranked the critical factors of tax evasion in business tax. As a result, tax authorities can utilize this novel framework to integrate key factors, set thresholds, and detect suspicious tax evasion activities, thereby promoting tax fairness. The proposed framework enhances the efficiency of authorities and governments in evaluating suspicious tax evasion cases. Academically, it addresses a gap in research by applying network concepts and methodologies to assess suspicious tax evasion activities. Commercially, the model aids in diagnosing and evaluating key factors influencing tax evasion in the business sector. 

JEL: H25, H26.