How do firms exploit their business network for tax evasion? Evidence from Mongolia

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I extended the coverage period of the tax return datasets until 2020, and currently they cover the period between 2014 and 2020. Additionally, I obtained and updated firms’ ownership information for 2020, as well as their GIS location for 2016. I cleaned the datasets, merged them using the masked firm tax IDs, and checked the consistency of the datasets.Furthermore, I identified the firms in the same trade network with tax evading firms using the operational audit and VAT invoice datasets. I started the analysis of identifying the firm clusters using machine learning algorithms based on the past relation between tax audit results and information on firms’ various tax returns such as corporate income tax and VAT returns.