In July 2013 the OECD, to tackle multinational tax avoidance, published its Action Plan against base erosion and profit shifting. The Action Plan suggests a variety of legislative and administrative measures to eliminate frictions from interactions between domestic tax laws and international tax...

Although tax non-filing and the resulting tax evasion are a challenge to public welfare, particularly in developing countries, scholarly knowledge on taxable citizens who do not register as taxpayers, also known as the ‘ghosts’, is minimal. To expand this knowledge base, this empirical paper...

This paper uses micro-level data from a nationally representative survey of 22,000 individuals in 14 Eastern European countries to investigate the effects of institutional, social, and individual factors on taxpayers' perceptions of power, motivations to comply, and non-compliant behaviors. The...

Although there is ample research on what affects tax morale, empirical evidence that tax morale affects tax evasion is scarce. The reason for this scarcity, is the difficulty to connect a measure of tax morale to a reliable proxy of tax evasion. The primary contribution, is that I identify an...

This paper uses firm-level survey data to explore whether the extent to which firms perceive taxes and crime as impediments to their operations and growth (perceived constraints) affects firm tax evasion. To rule out spurious covariation, I use reported crime incidences as an instrumental...

Corporate tax behavior has recently received considerable public interest, and anecdotal evidence suggests that firms are increasingly concerned about the reputational risk of tax planning. Using RepRisk data to capture firms’ reputational risk due to public scrutiny, this study examines the...

When do ex-ante beliefs about the values of others affect compliance and honesty? To answer this question, we conduct an experiment, in which subjects face repeated trade-offs between monetary gain and honesty. As a source of exogenous variation, half of the subjects were told that their choices...

This study examines the relation between risk-based tax audit strategies and corporate tax avoidance. We exploit OECD data across 54 countries on risk profiling, predictive modeling, and internal intelligence functions in tax administrations from 2014 to 2017 to investigate whether risk-based...

We propose a model that captures tax avoidance as an investment under uncertainty: searching for tax loopholes or developing legal avoidance schemes is associated with costs; the tax benefit is however uncertain. Its height depends on whether or not the tax agency agrees with the chosen...

This study investigates how strategic tax transfer pricing of a multinational company (MNC) and two tax authorities in different countries affects production and tax avoidance decisions at the firm level and tax revenues at the country level. We employ a game-theoretical model to analyze the...