期刊名称：International Journal of Strategic Property Management
印刷版ISSN：1648-715X
电子版ISSN：1648-9179
出版年度：2021
卷号：25
期号：3
页码：190-203
DOI：10.3846/ijspm.2021.14337
语种：English
出版社：Vilnius Gedinimas Technical University
摘要：In this paper the meaning of “under invoicing in a real estate market” signifes that the market value of real property exceeds its record value appearing in government documentation. Te purpose of this study is to identify the level of under invoicing and determine the factors that affect the under invoicing in real estate markets in Pakistan. We apply OLS and Extreme Bounds Analysis techniques to test our propositions. Te statistical sample consists of 338 real estate contracts. We fnd that under invoicing is determined by a multiplicity of factor. Tese include: the capital gains tax rate, the measurable amount of corruption in the economy, the risk-free rate, a buyer’s profession, the reputation of the local housing authority, and the degree of disequilibria in regional real estate markets. Our fndings are consistent with four distinct hypotheses: (a) tax evasion hypothesis, (b) widening gap hypothesis, (c) a corruption hypothesis and (d) a signaling hypothesis. Te evidence suggests that higher rates of taxation and a larger statistical incidence of corruption in markets tend to be associated with a greater probability of under-invoicing. Te fndings of the study have practical implications for those investors who are interested in real estate markets of emerging and developing economies.
