Measuring earned income tax gap in Peru: evidence from the National Household Survey

Earned income tax gap is estimated for the period 2009-2015. Potential income is obtained from the income reported in the National Household Survey (ENAHO), and is compared with the actual tax collection reported by the National Superintendence of Customs and Tax Administration (Sunat). The results show a decreasing trend in earned income tax gap. However, robustness analysis suggests the tax gap might be underestimated.