Simplifying the tax system and formalizing companies: APIAT Commercial Center in Trujillo, Perú

Abstract

The purpose of the research was to determine how the simplification of the tax system is related to the levels of informality of producers in the APIAT Commercial Center in Trujillo. The study used a non-experimental, cross-sectional, and correlational design. To collect the information, a Likert scale questionnaire was applied to a randomly selected sample. The results obtained show that the respondents evaluate the simplification of the Peruvian tax system at a low level. They do not find a sense of neutrality, justice and equity in the system and that it lacks regulations that facilitate its understanding and application. In compensation, they resort to practices outside the formal system, 59% at a high level and 39% at a medium level, mainly explained by economic and political factors. A significant inverse corrrelation was found between the two variables. Finally, the information obtained is relevant to understand that simplifying the tax system can contribute positively and effectively to the reduction of informality if it reduces the administrative and financial burden on taxpayers to optimal levels, with greater clarity and regulatory precision and respecting the principles of neutrality, justice and equity.