# Table V: Misreporting

||(1)|(2)|(3)|(4)|
|---|---|---|---|---|
||Sales R|eports|Cost R|eports|
||Self-Employed|Corporations|Self-Employed|Corporations|
|Panel A: Underreporting IT|||||
|1) % Underreporters IT vs TPI|16.9|14.2|50.6|29.8|
|2) Unreported Amount|270.6|2799.7|271.1|1021.1|
|3) Underreporters' TPI|652.9|7010.6|953.2|3603.3|
|4) Total TPI|1859.8|20664.1|1507.5|16421.4|
|5) Unreported Amount(% UR TPI)|41.4|39.9|28.4|28.3|
|6) Unreported Amount(% TPI)|14.5|13.5|18|6.2|
|Panel B: Underreported Liability|||||
|7) Unreported Tax IT|12.7|71.1|||
|8) Underreporters' Reported Tax|3.3|51.8|||
|9) Total Reported Tax|26.6|800.1|||
|10) Unreported Tax (% UR Tax)|385.6|137.4|||
|11) Unreported Tax (% Tax)|47.7|8.9|||
|Panel C: Internal Consistency|||||
|12) % Underreporters IT vs OTPI|3.6|5.3|17|8.3|
|13) % Overreporters IT vs OTPI|43.5|62.9|81.1|90.2|
|14) % Underreporters IT vs ST|9.4|9.6|14|5.9|
|15) % Overreporters IT vs ST|53.8|61.6|83.5|93.6|

Notes: This table displays estimates of compliance gaps between third-party reports and self-reports for the income tax. Third-party reported sales for the income tax is the sum of sales reported under D150, D151, D158, D153, and exports. Third-party reported costs for the income tax is the sum of costs reported under D151 and D158. Third-party reported sales for the sales tax is the sum of sales reported on D153 declarations. Columns 1-2 are for sales reports, and columns 3-4 for cost reports. In both analyses, we consider separately the self-employed (columns 1 and 3) and corporations (columns 2 and 4). All gures in this table are either in percent (as indicated), or in billions of constant 2015 colones. Underreporters (overreporters) are rms reporting an amount at least 0.25% smaller (larger) than the relevant comparison amount. Rows 1-6 examine underreporting of third-party reported sales/costs. They show the share of under-reporters among rms subject to third-party reporting for the income tax (1), the amount unreported (as compared to thirdparty reports) (2), the total third-party reports for under-reporters (3), the total third-party reports for the full sample (4), and the unreported amount as a share of the underreporters third-party reports (5), and as a share of total third-party reports (6). Rows 7-11 convert unreported sales into tax liabilities. They show an estimate of the unreported tax liability (7), the underreporters' reported tax liability (8), and the total reported tax liability (9), and the unreported tax as share of the underreporters' reported tax (10), and as a share of the total reported tax (11). The estimation of the unreported (gross) tax liability assumes that the prot rate on unreported sales is the same as the prot rate on reported sales (capped at 100%), and applies the tax schedule as displayed in Table I. Rows 12-15 analyze internal constency in ling. Rows 12 and 13 compare self-reports for the income tax to a rm's own third-party reports (third-party reports submitted by the rm itsself about transactions with other rms), and rows 14 and 15 compare income tax reports to sales tax reports. All calculations are based on 2010 data. Results are similar for other years, and when focusing only on rms that le according to the regular scal period.

35