Casey, P. and P. Castro (2015) “An Empirical Study of their Impact on Taxpayer Compliance and Administrative Efficiency”, IMF Working Paper 15/73.
Elek, P., J. Kollo, B. Reizer, and P. Szabo, 2001, “Detecting Wage Under-reporting Using a Double Hurdle Model,” IZA DP No. 6224, December 2011.
Gulyas, L., T. Mahr, and I. Toth, 2015, “Factors to Curb Tax Evasion: Evidence from the TAXSIM Agent-Based Model,” Discussion Paper MT-DP-2015/21, Centre for Economic and Regional Studies, Hungarian Academy of Science.
International Monetary Fund (2015) “Current Challenges in Revenue Mobilization: Improving Tax Compliance”, IMF Policy Paper, April.
Lacko, M., 2007, “Interrelationships of the Hidden Economy and Some Visible Segments of the Labor Market,” Discussion Paper MT-DP-2007/7, Institute of Economics, Hungarian Academy of Science.
Ministry for National Economy (2016) “Structure and Efficiency of Revenues”, Convergence Programme of Hungary 2016 – 2020, Government of Hungary.
Schneider, F., 2015, “Size and Development of the Shadow Economy 31 European and 5 other OECD Countries from 2003 20 2015: Different Developments,” January 2015.
Schneider, F., and A. Buehn, 2012, “Shadow Economies in Highly Developed OECD Countries: What are the Driving Forces?,” IZA DP No 6891, October 2012.
Prepared by Mariusz Jarmuzek and Borislava Mircheva.
Schneider and Buehn (2016).
Kreko and Kiss (2008) estimate that tax evasion resulted in a transfer of almost 8 percent of GDP from taxpayers to tax evaders in Hungary between 2005 and 2006.
The items subject to reduced rates were increased in 2016 and 2017.
For selected country experiences, please see IMF (2016). For example, the Estonian Tax and Customs Board has developed into a full service-oriented revenue body that (i) allows maximum simplification in the fulfillment of tax liabilities, through extended use of technology; (ii) conducts upgraded risk analysis through new methods for data analysis; and (iii) has developed capacity to administer tax arrears very effectively through improved information systems.
VAT is estimated to have slightly reversed to around 9.5 percent in 2016, which can be attributed to lower absorption of the EU funds and the introduction of reduced rates on selected items.