The absence of a competitive market may enable public-sector workers to extract rents from taxpayers in the form of high pay, especially when public-sector workers are unionized. On the other hand, this rent extraction may be suppressed by the ability of taxpayers to vote with their feet, leaving jurisdictions where public-sector workers extract high rents. However, although migration of taxpay...

This Article considers whether infertile taxpayers can deduct their fertility treatment costs as medical expenses under Internal Revenue Code section 213 and whether they should be able to deduct them. Internal Revenue Code section 213 defines medical expenses as "amounts paid-for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure...

Electronic tax or value-added (VAT) refund system is a computerized administration that especially designed to handle general from registration, assessment, filing returns and processing of claims refunds. This study was conducted with the aim develop model factors influencing intention use electronic return impact these on toward using system. It provides solutions encourage enterprises when o...

We extend the standard, one-period model of tax evasion to an intertemporal framework in which an expected-utility-maximizing taxpayer updates expectations about the probability of a future audit based on past audit experience. This framework provides a theoretical grounding for the empirical evidence indicating that tax evasion is affected by taxpayers' perceptions of audit probabilities and i...

We study the phenomenon of tax evasion using a simple signaling model, in which the signal is taxpayer’s reported income. The novelty of our approach lies in the way we define honesty. Specifically, we advocate the view that there are no absolutely honest taxpayers: all taxpayers may under certain conditions become evaders. We investigate the implications of this type of honesty on the equilibr...

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 ...

This paper discusses the factors that affect the acceptance of the e-filing system by Malaysian taxpayers. By understanding these factors, knowledge on taxpayers’ decision making is enhanced and will improve the e-filing system in Malaysia. A new construct, perceived risk, was added into the Technology Acceptance Model (TAM). Based on the data collected from 166 respondents, the results showed ...

We show that an increase in uncertainty about the probability of being audited (ambiguity) increases tax compliance for ambiguity-averse taxpayers but reduces compliance for ambiguity lovers. Because experimental evidence reveals considerable heterogeneity with respect to ambiguity preferences, we conclude that fostering uncertainty about the probability of being audited may not be an effective...