We provide empirical support and a theoretical explanation for the vicious circle of political corruption and tax evasion in which countries often fall into. We address this issue in the context of a model with two distinct groups of agents: citizens and politicians. Citizens decide the fraction...

This study approaches the theme of shadow economy with special attention on tax evasion within European Union. Our aim is to highlight the dynamics of tax evasion, its causes and effects. The possibilities and mostly the difficulties to quantify the tax evasion are emphasized. Tax burden is...

We examine the impact of the African slave trade between 1400 and 1900 on corporate tax evasion in modern Africa. Using a large sample of firms from 26 African countries, we document that firms are more likely to evade taxes in countries that suffered a higher level of historical slave...

Appendix is available at: https://ssrn.com/abstract=3322092We examine recent survey data from California to investigate smokers’ responses to an increase in cigarette excise-tax rates. We estimate how tax avoidance and the economic crimes of tax evasion and illicit trade in tobacco products...

Tax evasion is defined as the illegal nonpayment of a tax. Various arguments have been made over the centuries to justify tax evasion. Historically, the strongest arguments to justify tax evasion have been in cases where the people perceive the tax system to be unfair, where the government is...

We investigate the effects of an institutional mechanism that incentivizes taxpayers to blow the whistle on collusive corruption and tax compliance. We explore this through a formal leniency program. In our experiment, we nest collusive corruption within a tax evasion framework. We not only...

In recent years tax authorities worldwide have implemented voluntary disclosure schemes to recover tax on offshore investments. Such Schemes are characterized by the acquisition of non-audit information on offshore holdings, and a subsequent opportunity for affected taxpayers to make a voluntary...

Our study analyzes the relationship between public disclosure of group structures in Exhibit 21 and international tax avoidance of U.S. multinational firms. Several U.S. multinational enterprises have removed a substantial number of foreign subsidiaries from their Exhibit 21 since 2010. Our...

The analysis of international investment position and balance of payments statistics suggests that foreign assets held abroad are greatly underestimated. This paper has three main goals. First, it examines the role played by tax havens in tax evasion. Second, it estimates unreported capital to...

Theory and recent empirical literature suggest that social and professional connections may influence corporate policy. However, inference may be biased by the possibility that firms who share peers also share unobserved characteristics that are correlated with observed policy. Using a novel...