The tax gap as a public management instrument: application to wealth taxes

José M. Durán-Cabré ^[1] ; Alejandro Esteller Moré ^[1] ; Mariona Mas-Montserrat ^[1] ; Luca Salvadori ^[2]
1. [1] Universitat de Barcelona
  
  Universitat de Barcelona
  
  Barcelona, España
2. [2] University of Exeter
  
  University of Exeter
  
  Exeter District, Reino Unido
Localización: Applied economic analysis, ISSN 2632-7627, Vol. 27, Nº. 81, 2019, págs. 207-225
Idioma: inglés
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Resumen
- Purpose – The purpose of this paper is to study the concept of tax gap, that is the difference between the total amount of taxes collected and the total tax revenues that would be collected under full tax compliance.
  
  Design/methodology/approach – The authors also present the methodology to estimate the gap for two taxes levied on wealth: the wealth tax and the inheritance and gift tax; both are administered in Spain by the regional tax authorities.
  
  Findings – The authors point out that its estimation offers useful information about the relative size and nature of non-compliance, as well as its evolution over time. Likewise, the tax gap is a valuable instrument not only to define enforcement strategies of the tax administration but also to enhance its accountability.
  
  Nonetheless, the methodology used to estimate the tax gap and, consequently, the interpretation of the results is subject to limitations that are discussed in the paper. Originality/value – Finally, the paper provides the results of the estimations obtained from using microdata: 44.34 per cent gap in the wealth tax and 41.26 per cent in the inheritance and gift tax.