A tax buyout is a contract between tax authorities and a tax payer which reduces the marginal income tax rate in … tax evasion and show that a buyout can increase expected tax revenues. This will be the case if (1) the audit probability … taxes evaded, and authorities use information about income generated by the decision about a tax buyout offer when setting …

Decisions by firms and individuals on the extent of their tax payments have generally been treated as separate choices …. Empirically, a positive relationship between corporate and personal income tax evasion can be observed. The theoretical analysis … the gain from reducing corporate tax payments is certain, as in the case of tax avoidance. If, however, the firm evades …

period and evade taxes. Period-two income rises with educational investments in period one and can also be hidden from tax … authorities. It is shown that a greater tax deductibility of educational investments and higher individual ability induce a … positive correlation between tax evasion and educational investments in period two, whereas the relationship in period one is …

, the tax base. A higher taxable income, in turn, can make tax evasion more attractive. We show for various specifications … of preferences that the tax base effect generally dominates. Consequently, relative consumption effects tend to reduce … tax evasion. This is true, irrespective of whether tax parameters are exogenous, guarantee a balanced budget or are set …

a systematic manner with the legal rules as defined by labour as well as tax law. We start with a theoretical model that …