Fair inheritance taxation in the presence of tax planning

Fair Inheritance Taxation in the Presence of Tax Planning

This paper presents an analysis of the extent to which tax planning affects the level of the inheritance tax rate that is perceived to be fair. In a factorial survey conducted in Germany, tax planning was found to increase the fair tax rate by approximately 4 percentage points. The fair tax rate is determined by not only the size of the bequest, the relationship of the heir to the bequeather, a...

Inheritance tax planning at the end of life

There is an ongoing debate about whether inheritance and estate taxes are effective in raising revenues and in contributing to a more equal society. The different views on transfer taxes are largely dependent on beliefs about whether people plan their wealth to avoid these taxes. In this paper, we follow Kopczuk (2007) and study people’s planning response to the onset of terminal illness. An ex...

Legal Examination of the Terms of Taxation in Direct Tax Act

Today, one of the most important challenges of tax system is tax evasion of the taxpayers, which is an obstacle to the proper administration of the country. There are many ways to prevent tax evasion, one of which is the legal remedy for issuance under Article 161 of the Direct Taxes Terms and Conditions. This important legal entity can prevent tax evasion and prevent tax fraud by seizing the p...

Tax Morale and Optimal Taxation

We study experimentally how taxpayers choose between two tax regimes to fund a public good. The first-best tax regime imposes a general, distortion-free income tax. However, this tax cannot be enforced. The second-best alternative supplements the income tax by a specific commodity tax. This tax cannot be evaded but distorts optimal consumption choices, instead. The result is that a large majori...

Fixing the Income Tax with the Fair Tax