A Model of Income Tax Evasion with Venal Tax Officials: The Case of Taiwan
AbstractBased on interviews with 1/10 of all the CPAs in Taiwan, a prototype of income tax evasion within a corrupt bureaucratic system is summarized. It is shown that the Allingham-Sandmo (1972) model of tax evasion needs to be modified to capture the characteristic of this prototype. Conventional tactics (increasing penalty, raising the probability of detection) may only encourage taxpayers to intensify their bribing activities to avoid possible punishment, which can further corrupt the tax system. Instead, in developing countries where tax evasion goes hand in hand with corruption, a crack-down on corruption seems to be a more sensible approach.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by in its journal Public Finance = Finances publiques.
Volume (Year): 45 (1990)
Issue (Month): 3 ()
Contact details of provider:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Been-Lon Chen, 2003. "Tax Evasion in a Model of Endogenous Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(2), pages 381-403, April.
- Laszlo Goerke, 2008.
"Bureaucratic corruption and profit tax evasion,"
Economics of Governance,
Springer, vol. 9(2), pages 177-196, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.