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 ...

The tax administration is required to audit some or all its taxpayers to check the evasion of tax and ensure compliance. Conducting of audits involves costs to the tax department as well as to the taxpayer. Thus, audit is not a very welcome procedure both for the taxpayers as well as the economy. Tax administration agencies must therefore use their limited resources very judiciously to achieve ...

Guilt in law is inextricably linked with the onset of responsibility, while having two forms negligence or direct intent. modern commonly understood as a mental (intellectual and volitional) attitude to ones act its consequences. Meanwhile, tax authorities are required determine guilt legal relations based on results audits within framework desk field inspections. logical question remains which...

The value-added tax system in Iran has recently been focused due to its infancy, and consequently many aspects of its auditing quality, and strategies for achieving and improving the quality have not been explained. Also, it is important to asses VAT taxpayers risks in order to formulate an effective plan for selecting taxpayers for tax audit with the aim of increasing efficiency and effectiven...

This paper offers a first empirical investigation of how labor taxation (income and payroll taxes) affects individuals' well-being. For identification, we exploit exogenous variation in tax rules over time and across demographic groups using 26 years of German panel data. We find that the tax effect on subjective well-being is significant and positive when controlling for income net of taxes. T...

A large body of empirical work in labor and public economics analyzes the behavioral response of earnings to taxes and transfers using the standard static model where agents choose to supply hours of work until the marginal disutility of work equals marginal utility of disposable (net-of-tax) income. This model, which from now on we call the standard model, predicts that, if individual preferen...

How does a tax collecting agency distinguish between taxable and tax-free income when the law says that all that all exchanges having value, regardless of compensation mode, are seen to constitute income? ‘‘By using our common sense’’ proposed one of the Swedish Tax Agency’s legal experts. Common sense is here used as a frame for the boundary work that the Agency engage in-based on legislation,...