The paper shows how tax rate cuts can increase revenues by improving tax compliance. The intuition is that tax evasion … has externalities: tax evaders protect each other, because they tie down limited enforcement capacity. Thus, relatively … small tax rate cuts, which decrease incentives to evade taxes, can lead to increased revenues through spillovers - creating …

bank tax, and the U.S. administration has revived its own proposal for such a charge. This paper considers the structure …

Presumptive income taxes in the form of a tax on turnover for SMEs are pervasive as a way to reduce the costs of … sector income is subjected either to a corporate income tax or a tax on turnover, depending on whether their turnover exceeds … a threshold. We characterize the private sector equilibrium for any given configuration of tax policy parameters …

When the top personal tax rates are above the corporate rate, high-income individuals have an incentive to reclassify … their earnings as corporate rather than personal income for tax purposes. U.S. tax law at least imposes strict limits on the … up new firms can easily reclassify their income for tax purposes. This tax incentive therefore favors entrepreneurial …

This paper investigates if there are circumstances where time-varying tax rates could improve welfare and whether such …, the paper highlights the very particular circumstances that need to prevail. With liquidity constraints, a consumption-tax … break is in a better footing to boost consumption and welfare than an income-tax break. A hike in consumption taxes can also …

The extent of tax compliance has important implications for revenue yield, efficiency and the fairness of any tax … system. Tax evasion undermines revenue collection, distorts competition, and undermines a country's development prospects. In … this paper, we investigate whether higher productivity causally leads to lower tax evasion. We first present stylized facts …

Tax evasion is universal. It depends on the economic and tax structures, types of income, and social attitudes. The … theory of tax evasion has limitations since it depends solely on the attitude toward risk with full information regarding the … tax administration’s behavior. Methodologies for estimating tax evasion include predominantly estimating the underground …

Tax authorities in several countries have intensified their surveillance of intercompany transfer pricing in recent … pricing for tax purposes. It reviews the existing international guidelines and national rules on methods for determining … appropriate transfer prices, as well as the issues related to tax administration practices for the implementation of those rules …

This paper highlights the importance of the role of the domestic tax system in determining the economic consequences of …” of its debt Laffer curve only if it is on the wrong side of its tax Laffer curve. The analysis indicates that fairly … strong, and probably unrealistic, assumptions about the domestic tax system are needed to argue that the investment …