This paper examines tax evasion in the diesel fuel market. Diesel fuel used for on-road purposes is taxed, while other uses are untaxed, creating an incentive for firms and individuals to evade on-road diesel taxes by purchasing untaxed diesel fuel and then using it for on-road use. We examine the effects of a federal regulatory innovation in October 1993, the addition of red dye to untaxed die...

Taxpayers are more compliant than the traditional economic models predict. Why? The literature calls it the “puzzle of tax compliance”. In this paper we use field, experimental and survey data to investigate the empirical evidence on whether presence of tax morale helps to resolve this puzzle. The results reveal a strong correlation between tax morale and tax evasion/compliance which confirms t...

Since Feldstein (1999), the most widely used method of calculating the excess burden of income taxation is to estimate the e¤ect of tax rates on reported taxable income. Feldstein’s taxable income formula for deadweight loss implicitly assumes that the marginal social cost of evasion and avoidance equals the tax rate. This paper argues that this condition is likely to be violated in practice fo...

This study aims to examine the effect of Self Assessment System, Tax Justice, Distrust Officers on act evasion. The independent variables in this are and tax officials, while dependent variable is uses primary data by distributing questionnaires taxpayers. 367 have been distributed taxpayers KPP Pratama Jakarta Gambir 4 area. method used convenience sampling. Data analysis using multiple regres...