Tax Evasion, Corruption, and the Remuneration of Heterogeneous Inspectors
نویسنده
چکیده
In an economy where corruption is pervasive, how should tax inspectors be compensated? The optimal compensation scheme must take into account the strategic interaction between taxpayers and tax inspectors. Pure “tax farming” (paying tax inspectors a share of their tax collections) is optimal only when all tax inspectors are corruptible. When there are both honest and corruptible inspectors, the optimal compensation scheme lies -between pure tax farming and a pure wage scheme. Paradoxically, when inspectors are hired beforehand, it may be optimal to offer contracts that attract corruptible inspectors but not the honest ones.
منابع مشابه
Organization of the state inspections and suppression of corruption
The state inspections play an important role in the modern economy. There are two main directions of their activity. The rst one is collection of payments to the state budget. The tax inspections and the customs control the payment's values and check exemptions from payments for di erent economic agents. The agency should prevent tax or customs evasion but not interfere with the agents eligible...
متن کاملCorruption , extortion and evasion
Corruption, evasion and the abuse of power — and the possibility thereof — are pervasive features of economic activity. A prominent instance is tax collection. This paper examines the implications of corruptibility and the potential abuse of authority for the effects and optimal design of (potentially non-linear) tax collection schemes. Amongst the findings are that: the distributional effects ...
متن کامل• Phenomenology of the role of Individual attitudes on Tax Ethics
In this paper, the aim is to examine the relationship between morality and tax compliance in terms of taxpayers' perceptions of internal variables. Sample participants in this research selected randomly and included 21 interviewees from taxpayers in Kerman in 2017. The findings of the research indicate that the level of religious beliefs and patriotism of individuals greatly hinder their tax ev...
متن کاملEthics is the best professional policy.
he editorial ‘‘The Future . . . to whom it belongs?’’1 raises wo considerations on our professional practice. The first one, stimulated by our colleague Marcio brahão, refers to the Brazilian tax burden. The National nion of Attorneys of the National Treasury estimates that he cost of the crime of tax evasion in Brazil in 2015 alone as more than R$ 420 billion -seven times more than the nnual c...
متن کاملvalue added tax and tax evasion
The phenomenon of tax evasion has been always one of the most major issues among economists due to it's devastating effects on the economy and the process of economic development. Many scholars have always sought to provide solutions to reduce and limit tax evasion. The introduction of the VAT system can be seen as a milestone in the area of economic transparency and tax evasion, which refers t...
متن کامل