An experimental analysis of tax avoidance policies

Malik, Samreen; Mihm, Benedikt; Timme, Florian

doi:10.1007/s10797-017-9448-1

Cited by 10 publications

(7 citation statements)

References 36 publications

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“…2 The slider task has also been used in other studies including Hetzel 2010 Kesternich et al (2018) and Malik et al (2018). 3 Gill and Prowse (2012) embed heterogeneous effort costs within a more complex structural model, but they do not recover individual-level estimates of the cost of effort.…”

Section: Introductionmentioning

confidence: 99%

Measuring costly effort using the slider task

Gill¹,

Prowse²

2019

Journal of Behavioral and Experimental Finance

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Any opinions expressed in this paper are those of the author(s) and not those of IZA. Research published in this series may include views on policy, but IZA takes no institutional policy positions. The IZA research network is committed to the IZA Guiding Principles of Research Integrity. The IZA Institute of Labor Economics is an independent economic research institute that conducts research in labor economics and offers evidence-based policy advice on labor market issues. Supported by the Deutsche Post Foundation, IZA runs the world's largest network of economists, whose research aims to provide answers to the global labor market challenges of our time. Our key objective is to build bridges between academic research, policymakers and society. IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author.

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Section: Introductionmentioning

confidence: 99%

Measuring costly effort using the slider task

Gill¹,

Prowse²

2019

Journal of Behavioral and Experimental Finance

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“…Malik, Mihm and Timme [26] conduct a laboratory experiment in order to analyze the impact of Anti-Avoidance Tax Rules (hereinafter AAR) on overall tax compliance. The scope of AAR is to reduce aggressive tax avoidance practices and increase the collection of tax revenues.…”

Section: Tax Gap–literature Reviewmentioning

confidence: 99%

“…This set of principle-based tax rules allows tax authorities to differentiate between responsible tax planning and aggressive tax avoidance. Malik, Mihm and Timme [26] consider that the size of tax gap depends strongly on the interaction between citizens as taxpayers and the government, the perception of the tax law and the perception of past fiscal policies. Malik, Mihm and Timme [26] found that the adoption of AARs to increase tax compliance leads to a substitution effect between tax avoidance and tax evasion.…”

Section: Tax Gap–literature Reviewmentioning

confidence: 99%

“…Malik, Mihm and Timme [26] consider that the size of tax gap depends strongly on the interaction between citizens as taxpayers and the government, the perception of the tax law and the perception of past fiscal policies. Malik, Mihm and Timme [26] found that the adoption of AARs to increase tax compliance leads to a substitution effect between tax avoidance and tax evasion. While AARs do achieve some reduction in tax avoidance, Malik, Mihm and Timme [26] observe that tax evasion tends to increase in this context.…”

Section: Tax Gap–literature Reviewmentioning

confidence: 99%

“…Malik, Mihm and Timme [26] found that the adoption of AARs to increase tax compliance leads to a substitution effect between tax avoidance and tax evasion. While AARs do achieve some reduction in tax avoidance, Malik, Mihm and Timme [26] observe that tax evasion tends to increase in this context. The authors conclude that the substitution effect does decrease the effectiveness of AARs in lowering the tax gap.…”

Section: Tax Gap–literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Alternative method to measure the VAT gap in the EU: Stochastic tax frontier model approach

Nerudová¹,

Dobranschi²

2019

PLoS ONE

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In this paper, we pursue an alternative method to measure the Value Added Tax gap in the European Union using the stochastic tax frontier model. We use the Value Added Tax total tax liability as the input to estimate the optimal frontier of the Value Added Tax, as well as to predict technical inefficiency. Using the latest innovations of the stochastic frontier approach, we aim to obtain the accurate size of the Value Added Tax gap in the EU-26 countries and contrast them with extant estimates. The obtained estimates of the Value Added Tax gap using the stochastic tax frontier model are different from the estimates produced by the top-down method to calculate the Value Added Tax gap in the EU. Moreover, the stochastic tax frontier approach allows us to disentangle the Value Added Tax gap, which is time dependent, from the persistent Value Added Tax gap, which is country specific. The stochastic tax frontier model allows us to test the effect of exogenous factors on the technical inefficiency of the Value Added Tax and propose appropriate policy recommendations.

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40 years of tax evasion games: a meta-analysis

Alm

Malézieux

2020

Exp Econ

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We collect individual participant data from 70 papers that use laboratory experiments to examine individual tax evasion behavior (or "Tax Evasion Games"), in order to use meta-analysis to estimate the impacts of different public policy, experimental design and individual level variables on tax evasion choices. Our results show that standard enforcement variables like audits (including audit rules) and fines perform differently on the extensive and intensive margins. We find that other fiscal variables like a flat tax system, tax rates, and tax amnesties have unambiguous negative impacts on tax compliance, and that specific features of the experimental setting, such as how subjects are directed to report income, or whether taxes are redistributed to the participants or to a real life public good, have significant impacts on tax compliance. Our results also indicate that the demographic characteristics of the subjects (e.g., gender, experimental income, occupation, risk attitude) affect compliance.

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An experimental analysis of tax avoidance policies

Cited by 10 publications

References 36 publications

Measuring costly effort using the slider task

Measuring costly effort using the slider task

Alternative method to measure the VAT gap in the EU: Stochastic tax frontier model approach

40 years of tax evasion games: a meta-analysis

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