there is always a considerable difference between the corporate performance and the tax levy that is identified by the taxation authorities which has become a common practice. this fact has led to no fairness among taxpayers, a fact that influences the horizontal and vertical sides of equity. horizontal equity is created when people feel the benefits of the tax gain that is proportional to the ...

This paper first develops a theoretical framework for analyzing the impact of social interactions on tax evasion behavior. Using Manski’s (1993) nomenclature, our approach takes into account social conformity effects (expressing endogenous interactions) and fairness effects (expressing exogenous interactions). The latter reflect the taxpayer’s perception of how he is treated by the tax system r...

This article explores the development of sales tax on e-business. It points out that the problem was rooted in the fact that the seller is required to collect and remit the tax to the buyer’s state government. If the seller and the buyer do not reside in the same state, the buyer’s state government has no jurisdiction over the seller, unless there is a “physical presence” of the seller in the b...

A weighted-voting mechanism is presented in which agents are able to jointly decide on plan repair proposals in the airport traffic control domain. The mechanism uses Clarke Tax for incentive compatible bidding. It provides a slider value by which an airport can control the balance between optimality and fairness of plan repair solutions. Special care is taken to ensure that agents have no ince...

We present a multiagent decision mechanism for the airport traffic control domain. It enables airlines to jointly decide on proposals for plan conflict solutions. The mechanism uses weighted voting for maximizing global utility and Clarke Tax to discourage manipulation. We introduce accounts to ensure that all agents are treated fairly, to some extent. The mechanism allows an airport to determi...

During the 1980s structured research into tax evasion and non-compliance became widespread following the political concerns in the United States of an increasing “tax gap.”1 Initially, the literature which emerged from the United States had a strong focus on economic theory. Utility theory, developed by Allingham and Sandmo,2 assumed taxpayers to be ‘utility maximisers’ in decisions of tax repo...

An essential part of local fiscal policy is the choice of the tax base. In this paper, we take four criteria to evaluate tax bases, namely: efficiency, simplicity, flexibility, and fairness. The results of such an evaluation highly depend on how we describe the involved agents. We construct a two stage model of a local economy with three types of agents: Leviathans, households, and housing firm...