Please use this identifier to cite or link to this item:
Title: Tax Evasion in Interrelated Taxes
Author: Esteller Moré, Alejandro
Keywords: Frau fiscal
Sancions tributaries
Tax evasion
Tax penalties
Issue Date: 2004
Publisher: Institut d’Economia de Barcelona
Series/Report no: [WP E-IEB04/02]
Abstract: In 1969, Shoup postulated that the presence of interrelated taxes in a tax system would reinforce the tax penalty system ("self-reinforcing penalty system of taxes"). In this paper, we have tried to formally develop this idea. We find that in order for tax reinforcement to be maintained, it is necessary for interrelated taxes to be administered by a single tax administration, or if they are administered by different tax administrations, the level of collaboration between them has to be sufficiently high. If so, tax evasion in interrelated taxes might be considered as an alternative explanation for the gap between the levels of tax evasion that can be guessed in practice and the much higher levels predicted by the classical tax evasion theory (Allingham and Sandmo, 1972; Yitzhaki, 1974). Otherwise, the result anticipated by Shoup may even be reversed. Moreover, as long as collaboration is imperfect, the classical results of the comparative statics might change, since in some cases, although global tax compliance increases when faced with a variation in a tax parameter, it can decrease in a single tax.
Note: Reproducció del document publicat a:
It is part of: IEB Working Paper 2004/02
Appears in Collections:IEB (Institut d’Economia de Barcelona) – Working Papers

Files in This Item:
File Description SizeFormat 
IEB04-02_Esteller.pdf335.22 kBAdobe PDFView/Open

This item is licensed under a Creative Commons License Creative Commons