Civil law scholars often assume there are general differences in the approaches taken to the interpretation of income tax laws in civil law jurisdictions and common law jurisdictions. However, these differences may be dwarfed by the different approaches taken by two camps within the common law...

This paper explores the effects of fiscal policy in an economy based on indirect taxes, and in the presence of VAT evasion channel. In addition, the government is taxing all income at the same rate. The focus of the paper to compare and contrast two regimes - the exogenous (observed) vs. optimal...