Tax evasion is a widespread phenomenon confirmed by numerous European and American reports. To contrast it, governments already adopt software solutions that support tax inspectors in their investigations. However, the currently existing systems do not normally take advantage of the constant stream of data published on the Web. Instead, the ASIA project aims to prove the effectiveness of combin...

This paper shows that an increase in corporate/labor/income tax rates may push an economy with tax evasion into an expansionary pattern, under increasing returns to scale. These effects would be reversed when the steady state is saddle-path stable. This model does not undertake a full identification. The interesting feature of our results is that fiscal policy in an economy with a significant u...

Abstract We experimentally analyze three anti-tax-evasion mechanisms: (1) prefilling of deductions in tax returns, (2) restricting evasion opportunities by either disallowing or (3) limiting the deductibility expenditures. find that compared to blank forms reduces evasion. Cutting number expenditure items is an ineffective mechanism combat as individuals shift their activities from disallowed i...

We developed a simple monetary model to study the effects of tax evasion on the optimal inflation tax. The model is constructed so that inflation might be an indirect way of taxing the underground sector of the economy. We show that while there are theoretical reasons for positive optimal inflation rates, the effects are quantitatively small, even in countries with large underground sectors. We...

This paper examines the issue of tax evasion by enterprises through underreporting activity. We develop a view of this phenomenon as an equilibrium of the game between a businessman and an imperfectly monitored supervising official, in which a businessman can hide part of his profit and offer bribe to official. We determine conditions under which such tax evasion and bribery become wide-spread ...

This article discusses the TAXSIM model for the simulation of tax evading behavior in a computational model of a single market sector. The rate of tax evasion is an agreement between an employer and an employee that is made to reduce costs. The agents’ expectations and satisfaction are results of the agents’ individual learning, based on their own experiences and on those in their social networ...

In markets where transactions are governed by contractual incompleteness, revealed intentions to evade taxes may affect market performance. We experimentally examine the impact of tax evasion attempts on the performance of credence goods markets, where contractual incompleteness results from asymmetric information on the welfare maximizing quality of the good. We find that tax evasion attempts ...

Tax evasion has long been a problem for governments around the world. This study examines influence of religiosity, Machiavellian, and gender on tax evasion, as well role in moderating relationship between religiosity Machiavellian evasion. The sample this research is 120 respondents who already have NPWP Jakarta surrounding areas. study's results prove that positive effect no In contrast, sign...

This paper examines the implications of tax evasion for "scal competition and tax harmonization policies in an economic union. First, for symmetric countries, it proves that the equilibrium values of the tax and audit rates are less than optimal. Tax harmonization alone will also lead to a less than optimal audit rate. Second, for asymmetric countries, the paper shows that integration may turn ...