Tax reforms and the Jorge Cepeda market income tax, 2017-2021

Abstract

Introduction. The tax reforms referring to IR, are modifications to the fiscal regulations, these changes have an impact on the calculation and payment of the tax, in the last five years Ecuador has gone through a series of modifications in the laws with the aim of increasing collection to increase the state budget. Target. Analyze the changes in income tax collection because of the tax reforms in the Jorge Cepeda market from 2017 to 2021. Methodology. The research is non-experimental with a quantitative approach, of a descriptive-correlational type, focused on establishing the relationship between the variables through Pearson's chi-square method; Secondary databases of the five-year period to be investigated provided by the SRI were used; the population is 294 establishments located in the Jorge Cepeda market. Results. From 2017 to 2018, an increase of 39.87% in the collection of selected taxpayers was identified, this result is derived from the application of the Organic Law for Productive Development; for the year 2019, the collection decreased by 19.98% due to the economic crisis generated by the COVID-19 pandemic, which forced several businesses to suspend their activities; in 2020-2021, to correct the impact caused by the quarantine, the Humanitarian Support Law comes into force, causing an increase of 82.27% in collection; Finally, an increase of 72.53% was projected when applying the Organic Law of Tax Simplification and Progressivity for 2022. Conclusion. The tax reforms according to the correlation results of the selected indicators based on statistical information fulfill their purpose for the government by causing an increase in tax collection, however, these constant changes affect the taxpayer, who fails to develop a good tax culture due to the instability of the laws.