We conduct a field experiment with sellers of home improvement services on two German online markets. take the role consumers and vary whether we request an invoice for delivery service. In market that allows anyone to sell anonymously, willingness evade is prevalent. keeps track credentials, are only willing when collude signaled. The evasion discount in most estimates not larger than tax subs...

We ask whether attitudes toward government play a causal role in the evasion of US personal income taxes. As turnover elections move voters partisan counties into and out alignment with party president, we find (i) taxpayers report more easily evaded forms income; (ii) suspect EITC claims decrease; (iii) audits triggered found to owe additional tax decrease. Coupled evidence that leads favorabl...

ABSTRACT Although determinants of cross-border merger and acquisitions (M&As) have received substantial attention in the literature, research examining effect tax system characteristics on M&As is more limited. Cross-border implications for both acquiring firm target firm. Because firms evaluate investments based expected after-tax returns, I expect that managers consider potential savi...

ABSTRACT The Tax Cuts & Jobs Act of 2017 (TCJA) limited interest deductibility. Using a difference-in-differences design, we show that following the enactment new limitations, affected firms significantly decrease their leverage. Specifically, find relative to unaffected U.S. firms, leverage by 7.6 percent assets, corresponding $330 million per firm and $84.8 billion for treatment sample. T...

This paper studies corporate tax competition if it is costly to learn some of the elements that determine the e¤ective tax burden. Search cost may, but need not, eliminate the tax competition pressure. The outcome depends on the boundaries of tax rate and tax base choices. Search cost can explain the empirically observed tax cuts cum base broadening. Keywords: Costly search, tax competition, co...

The canonical model of Allingham and Sandmo (1972) predicts that firms evade taxes by optimally trading off between the costs benefits evasion. However, there is no direct evidence react to audits in this way. We conducted a large-scale field experiment collaboration with tax authority address question. sent letters 20,440 small- medium-sized collectively paid more than US$200 million per year....

Many e-government initiatives introduce technology to improve efficiency and avoid potential human bias. Using experimental variation, we examine the impact of electronic tax filing (to replace in-person submission officials) using data from Tajikistan firms. E-filing reduces time firms spend on taxes by 40 percent. Further, among previously more likely evade, e-filing doubles paid. Conversely,...

This paper estimates intertemporal labor supply responses to two-year long income tax holidays staggered across Swiss cantons. Cantons shifted from an system based on the previous two years’ a standard annual pay as you earn system, leaving years of untaxed. We find significant but quantitatively very small wage earnings with elasticity 0.025 overall. High earners and especially self-employed d...

Countries in recession, among them Croatia, have lower tax revenues as a result of unfavorable economic situation, which is decrease of the economic activities and unemployment. The global tax base has decreased. In order to create larger state revenues, states use the institute of tax authorities. By controlling transfer pricing in the international companies and using certain techniques, tax ...

Aim/purpose – The underground economy is a major challenge across the world affect- ing both developed and developing economies. South Africa no exception to this phenomenon has lost billions of rands due economy. aim study estimate size in Africa. Design/methodology/approach used quarterly time series data from 2000 2020 employed Currency Demand Approach (CDA) for modeling under- ground Findin...