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 …

We study a field experiment on tax compliance in Slovenia. Small accounting companies were randomly assigned to an … importance of paying taxes and informed about the likelihood of becoming subject to an audit. In the second treatment group, tax … officers from the tax authorities handed out in person the same letter that companies in the first treatment group received by …

examine a stylized poor state with weak institutions in which a "culture of evasion" damages state authority. Many evade tax … appropriate level of enforcing proper payments of taxes due. The government needs to design an effective tax administration policy …