ed =312141; ARMIN FALK ET AL., INFORMAL SANCTIONS 31-32 (U. of Zurich, Inst. for Empirical Research in Econ., Working Paper No. 59, 2000), http://papers.ssrn.com/sol3/ delivery.cfm/SSRN_ID245568_code001011130.pdf?abstractid=245568 (testing for reciprocal behavior in Internet and classroom laboratory experiments and concluding that reciprocity decreases with increased social distance but is not ...

Agent based models are proposed as an adequate tool for analysing tax payer decisions and, thereby, the consequences of such decisions as they manifest themselves at the macro level. TAXSIM models the conduct of agents of three types, i.e. employers, employees and the government, in an economy of a single sector. Using this model, we examine the conduct of each individual agent and the impact o...

To combat their aversion to paying taxes, many taxpayers can exercise some control over their tax bill. U.S. tax law includes a rich menu of tax-incentivized behaviors, including favorable treatment of mortgage interest, retirement savings, and charitable giving, among many other provisions. Through undertaking these actions, or through remembering to claim credits or deductions due for actions...

This paper adds to the economic-psychological research on tax compliance by experimentally testing a simple auditing rule that induces strategic uncertainty among taxpayers. Under this rule, termed the bounded rule, taxpayers are informed of the maximum number of audits by a tax authority, so that the audit probability depends on the joint decisions among the taxpayers. We compare the bounded r...

As policy makers recognize the complexity of the tax system can result in some “evasion” being due to errors, there has been increasing focus on the role of taxpayer services as a tool in the enforcement regime. Such programs can improve the image of the tax agency but the critical issue is the effect on tax reporting. While the earlier focus has been on tax evasion, tax overreporting is also a...

This paper investigates, from an experimental perspective, on the tax payers behaviour in a dynamic context and more precisely tries to cope with three main topics related to tax evasion. The first aspect analysed regards the effects produced by a repetitive dynamic choice process on the subjects' attitude towards risk and on the ability to learn to cope with risk. The second theme treated is a...

Tax Evasion and Social Interactions The paper extends the standard tax evasion model by allowing for social interactions. In Manski’s (1993) nomenclature, our model takes into account social conformity effects (i.e., endogenous interactions), fairness effects (i.e., exogenous interactions) and sorting effects (i.e., correlated effects). Our model is tested using experimental data. Participants ...

Raising domestic tax revenues is a priority for most sub-Saharan African countries. But the tax bases in most African countries are undermined by widespread tax avoidance and evasion. A new study from CMI supports the claim that improved knowledge about the tax system makes a difference in people’s willingness to pay tax. The study shows that exposure to Value-AddedTax (VAT) makes people take a...

Introduction: the business needs In these years, Italy is dealing with serious economic and social issues, which are aggravated by the recent global economic crisis. These issues include, among others: high fiscal burden, widespread tax evasion, increasing unemployment rate and the progressively aging of population. In this context there are two major needs that public administrations have to m...

— Observers have asserted that India’s economic rise coincides with moral change. This study assesses some notable aspects of this claim by using public attitudes toward tax evasion and bribery as indicators of moral values. Using repeated cross-sectional data from the World Values Surveys, I find that tolerance for tax evasion and bribery grew relatively slightly from 1991 to 1996, and then in...