2023 Fiscal Year Research-status Report
How do firms exploit their business network for tax evasion? Evidence from Mongolia
| Project/Area Number |
22K13415
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| Research Institution | Hitotsubashi University |
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Principal Investigator |
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| Project Period (FY) |
2022-04-01 – 2026-03-31
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| Keywords | tax evasion / firm network |
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| Outline of Annual Research Achievements |
I worked on identifying the firm clusters using machine learning algorithms based on the relation between tax audit results and information on firms’ various tax returns such as corporate income tax and VAT returns. I also improved the matching between tax data, firm ownership data and firms' GIS location information.
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| Current Status of Research Progress |
Current Status of Research Progress
4: Progress in research has been delayed.
Reason
Due to personal reasons, I had to take a temporary leave from my work and suspend this project. I plan to return to work in 2025.
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| Strategy for Future Research Activity |
I will continue to work on identifying firm clusters based on trade, ownership, and geographical networks.
Specifically, I plan to study whether tax-evading firms in Mongolia form clusters and investigate what motivates firms to join or leave such evasion-prone networks. To do so, I will use data on firm entry and exit as well as the sudden increase in the VAT threshold in 2016.
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| Causes of Carryover |
Due to personal reasons, I had to take a temporary leave from my work and suspend this project. I plan to return to work in 2025.
Once I return to work, I plan to finish the analysis and use the remaining fund to travel to Mongolia to present the results. Moreover, I intend to apply to international conferences to present my research.
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