We provide first field evidence on evasion spillovers as an important determinant of the individual compliance decision. Exploiting discontinuities in a self-reported commuter tax allowance, we observe a substantial share of taxpayers misreporting their claims. Using exogenous variation in job...

Does taxation affect the timing of death? This is important as an example of how behavior might be affected by economic incentives. We study how three changes in Swedish inheritance taxation 2004-2005 have affected daily all-cause mortality. Our first main result is that mortality decreased by...

We investigate whether monitoring the information trails generated by firms’ activities improves tax compliance. We exploit quasi-experimental variation generated by a Large Taxpayers’ Unit (LTU) in Spain, which devotes additional resources to verifying the transactions reported by firms...

Economists agree that accounting specialists are helpful in avoiding taxes. We argue that such help can often be called sophisticated evasion. We analyze it in a game of incomplete information played by tax authority, corporate taxpayers and accounting specialist. When sophisticated evasion is...

We analyze the role of accounting specialists who help corporations evade/avoid taxes in a game of incomplete information played by a tax authority, corporate taxpayers, and an accounting specialist. In addition to a full equilibrium characterization, we establish that (i) marginal changes in...

The main purpose of this paper is to provide an assessment of the impact of the introduction of an alternative minimum tax (AMT) in Belgium with a focus on the impact on various distortions margins. In the process, we provide an up-to date account of the state of effective corporate taxation in...

Previous literature shows that income taxation especially affects the behaviour of business owners and entrepreneurs. However, it is still unclear how much of the response is due to changes in effort and other real economic activity, and how much is due to tax avoidance and tax evasion. This is...

Previous literature shows that income taxation significantly affects the behavior of high-income earners and business owners. However, it is still unclear how much of the response is due to changes in effort and other real economic activity, and how much is caused by tax avoidance and tax...

This paper analyzes the economic effects of different income splitting rules for closely held corporations and sole proprietorships/partnerships in a tax system with a dual income tax. We conclude that the tax rules for closed corporations offer roughly the same cost of capital as for widely...