The excess burden of tax evasion - An experimental detection - concealment contest ∗ Ralph -
نویسنده
چکیده
We present an experimental study on the wasted resources associated with tax evasion. This waste arises from taxpayers and tax authorities, investing costly effort in concealment, respectively detection, of tax evasion. We show that (socially inefficient) efforts depend positively on the prevailing tax rate, but not on the fine which is imposed in case of detected tax evasion. The frequency of evasion increases with tax rates. Additionally, we observe less tax evasion than a model with risk neutral taxpayers predicts. We find evidence that this is rather due to individual moral constraints than due to risk aversion. JEL-classification code: H26, K42, C91
منابع مشابه
The excess burden of tax evasion - An experimental detection - concealment contest ∗ Ralph - C Bayer † and Matthias Sutter
We present an experimental study on the wasted resources associated with tax evasion. This waste arises from taxpayers and tax authorities, investing costly effort in concealment, respectively detection, of tax evasion. We show that (socially inefficient) efforts depend positively on the prevailing tax rate, but not on the fine which is imposed in case of detected tax evasion. The frequency of ...
متن کاملA contest with the taxman - The impact of tax rates on tax evasion and wastefully invested resources
We develop a moral hazard model with auditing where both the principal and the agent can inuence the probability that the true state of nature is veri ed. This setting is widely applicable for situations where fraudulent reporting with costly state veri cation takes place. However, we use the framework to investigate tax evasion. We model tax evasion as a concealment-detection contest between ...
متن کاملFinding out who the crooks are - Tax evasion with sequential auditing
This paper investigates multi-item moral hazard with auditing contests. Although the presented model is widely applicable, we choose tax evasion as an exemplary application. We introduce a tax-evasion model where tax authority and taxpayer invest in detection and concealment. The taxpayers have multiple potential income sources and are heterogeneous with respect to their evasion scruples. The t...
متن کاملفرار مالیاتی در واردات ایران، رویکرد مدل ترکیبی شبکه عصبی مصنوعی و الگوریتم تبرید تدریجی
Import tax is one of the government revenue sources that some of its portion is not accessible to government due to tax evasion. In this study, the factors affecting tax evasion in import, have been identified by using the combinatorial model of artificial neural network and simulated annealing algorithms that is capable to analyze the nonlinear systems. For this purpose, four explanatory varia...
متن کاملMoral constraints and the evasion of income tax
This paper re-examines the individual income tax evasion decision in the simple framework introduced by Allingham and Sandmo (1972), where the individual taxpayer decides how much of his income is invested in a safe asset (reported income) and in a risky asset (concealed income). These early models could not convincingly reproduce the empirically observed positive inuence of higher tax rates a...
متن کامل