This paper constructs a game-theoretic model to study host country policy to attract import-substituting foreign direct investment (FDI). Investors are assumed to be incompletely informed about local investment conditions, and taxes and tariffs are determined endogenously. We show that in certain situations countries will offer tax incentives while in others they will impose a tariff wall to in...

Revenue plays a very important role in the development of any country especially developing like India. Direct taxes have part revenue Central Government. The contribution Income Tax is greater than other direct Government revenue. Complex nature our law relating to taxes, high tax rate, defective administrative machinery and increasing liability create problem Evasion Avoidance has been effect...

We present new cross-country empirical evidence that tax system complexity affects the location of international investment. The comes from a database foreign direct investment (FDI) bilateral flows for all OECD countries over 2013–2016 period, and Doing Business survey, which collects several measures effective rates. By means gravity model, we consider impact destination parent country charac...

This paper reviews the evidence on tax non-compliance and the “underground economy” in Canada, with an emphasis on the reporting activities of self-employed individuals and businesses. Indirect methods of estimating the size of the unrecorded sector are found to generate widely varying, and in a number of cases implausible, estimates of underground activity. More direct evidence from enforcemen...

This paper reviews the evidence on tax non-compliance and the “underground economy” in Canada, with an emphasis on the reporting activities of self-employed individuals and businesses. Indirect methods of estimating the size of the unrecorded sector are found to generate widely varying, and in a number of cases implausible, estimates of underground activity. More direct evidence from enforcemen...