Tax audits, fines and optimal tax evasion in a dynamic context
AbstractIn a dynamic optimisation framework we show that the optimal tax evasion can be either a positive or a negative function of the tax rate according to the form of the fine to be paid when evasion is detected.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 117 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/ecolet
Tax evasion; Dynamic optimisation; Tax rates; Audit process; Optimal dynamic consumption;
Find related papers by JEL classification:
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
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