Business tax fraud and public current income in the northern commercial sector of Guayaquil

Abstract

The article addresses the issue of corporate tax fraud and its impact on public current income in the northern commercial sector of Guayaquil. The prevalence of practices that evade tax obligations, taking advantage of legal loopholes and illegal strategies, is highlighted. The lack of control by the tax authorities contributes to the problem, allowing the constitution of fraudulent companies that generate evasion and money laundering. The study aims to analyze how this fraud affects incomes and the economy in general. It raises the issue of tax evasion and avoidance, and exposes how shell companies negatively impact state revenues. Examples from Latin America and the Caribbean are cited that demonstrate significant losses due to tax evasion. It highlights the lack of control and monitoring in the region, which allows illicit financial flows to affect tax revenues. In Ecuador, fraudulent companies are evidenced and their impact on public revenue is quantified. The methodology used is quantitative and qualitative, with techniques such as interviews and surveys. The results show that the control of tax fraud positively influences tax and non-tax revenues, and it is concluded that greater control would improve current revenues in the northern commercial sector of Guayaquil.