Dataset on tax evasion in Baghdad, Iraq
Description
Tax evasion remains a significant global challenge, undermining government revenues and intensifying economic inequalities. Understanding the factors driving tax evasion is essential for crafting effective strategies to mitigate it. Among the key determinants influencing tax compliance are deviant culture, weak law enforcement, and administrative corruption. We adopted specific definitions for the variables under investigation. Tax evasion is defined as the unlawful practice by individuals or entities of avoiding tax obligations, often through methods such as underreporting income, inflating deductions, or concealing funds and their sources. Deviant culture refers to societal norms and behaviors that deviate from accepted ethical standards and may condone actions such as tax evasion. Weak law enforcement is characterized by the inability or unwillingness of legal authorities to enforce laws effectively, leading to higher rates of illegal activities. Administrative corruption involves the exploitation of public offices for private benefit, often reflected in acts such as bribery and favoritism. These variables are latent constructs, meaning they cannot be directly observed or measured easily. To quantify these constructs, reflective measurement models were developed, relying on observed indicators (items) that represent the underlying constructs. A 7-point Likert-type scale, as detailed in Appendix I, was used to measure these indicators, with responses ranging from 1 (strongly disagree) to 7 (strongly agree) and a midpoint of 4 (neither agree nor disagree). Primarily, the measurement items related to the deviant culture construct (DC1–DC6) reflect a complex combination of people's attitudes toward corruption, their tendency to engage in illicit activities, the influence of religion on their behavior, their tendencies toward greed, and their perspectives on taxes and tax evasion. Similarly, the weak law enforcement scale (LE1–LE6) measures various dimensions, such as the effectiveness of investigations, the severity and consistency of punishments, the leniency shown in dealing with offenses, delays in detection and prosecution, and public attitudes toward criminal activity. The administrative corruption scale (AC1–AC6) comprises six indicators addressing the widespread nature of corruption, the personal benefits received by public officials, the presence of unqualified or incompetent officers, scandals involving government officials, the dynamics of bribery, and issues surrounding the awarding of government contracts. Finally, the tax evasion construct (TE1–TE6) encompasses six items that capture participants' acceptance of tax evasion, their engagement in morally questionable behaviors related to taxes, perceptions of taxes as being misused or corrupted, dissatisfaction with high tax rates, and their willingness to use bribes to reduce tax liabilities.
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Steps to reproduce
We developed a survey questionnaire consisting of two sections. The first section aimed to gather data related to the indicators of the studied constructs, as outlined in Appendix I. The second section contained five questions focusing on the demographic profiles of taxpayers, as detailed in Appendix II. To ensure cultural appropriateness, the questionnaire was first translated into Arabic, the predominant language spoken in Baghdad, Iraq. Subsequently, five colleagues from Middle Technical University (a public university in Baghdad) reviewed the questionnaire to ensure alignment with Iraqi cultural nuances. Additionally, 30 university students were invited to complete the questionnaire to verify the clarity and comprehensibility of the statements. Based on their feedback, minor adjustments were made to the content, as shown in Appendix I and II. The study targeted Baghdad, Iraq’s capital, due to its representative economic and demographic diversity. The goal was to collect data from a sample of 500 taxpayers in urban Baghdad to achieve reliable insights into tax evasion and its underlying causes. This approach was deemed more effective than directly asking public officials about their compliance with laws. To reach the target population, the questionnaire was uploaded to Google Forms, ensuring all questions were mandatory to prevent incomplete data. The survey link was shared with taxpayers via email, WhatsApp, Facebook, and other social media platforms. Initially, the survey was distributed among students, administrative staff, and faculty members of Middle Technical University. Later, students and digital acquaintances were encouraged to share the survey with their friends and family. Over three months, from September to November 2021, and despite time and resource constraints, the survey yielded 459 complete and valid responses. The full questionnaire, its coding, and the raw data can be accessed in the attached Excel file. Regarding the demographic profile of taxpayers in urban Baghdad, 68% of respondents were men, and 32% were women. Participants in their twenties made up 33% of the sample, followed by those in their thirties (27%), forties (12%), and those aged fifty and above (27%). Concerning monthly household income, 15% earned less than half a million Iraqi dinars (approximately US$333), while 16% earned between 500,000 and one million IQD. Meanwhile, 26% reported earning between 1 and 1.5 million IQD, 14% between 1.5 and 2 million IQD, and 29% earned over two million IQD. In terms of educational background, 22% of respondents were university or college students, 32% held a diploma or bachelor’s degree, and 43% (primarily faculty members) held postgraduate degrees. The remainder possessed secondary school certificates or lower qualifications. Regarding employment status, 46% of participants were public sector employees, 22% worked in the private sector, 12% were students, and 11% were self-employed.