Advanced Search
MyIDEAS: Login

The Effects of Tax Evasion on the Choice between Personal and Corporate Income Taxation

Contents:

Author Info

  • Diego d'Andria

    ()
    (LUISS Guido Carli University of Rome, viale Romania, Roma, Italy)

Abstract

This article analyzes the relative choice between different tax tools burdening corporate incomes or dividends at the personal level in open economies where tax evasion, both corporate and personal, is not null. A theoretical discussion explains why a government may decide to levy a positive corporate income tax even when capital is internationally mobile while shareholders are immobile. Since tax auditing may be more effective on corporate incomes rather than on personal incomes, a benevolent or malevolent government may face a trade-off between reducing available capital supply and reducing total taxation revenues. The intuition is then submitted to empirical test using panel data from twenty-eight Organisation for Economic Co-operation and Development (OECD) countries. The results hint at a possible role for tax evasion in explaining why some countries prefer to tax corporate incomes rather than dividends and capital gains under personal taxation.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://pfr.sagepub.com/content/39/5/682.abstract
Download Restriction: no

Bibliographic Info

Article provided by in its journal Public Finance Review.

Volume (Year): 39 (2011)
Issue (Month): 5 (September)
Pages: 682-711

as in new window
Handle: RePEc:sae:pubfin:v:39:y:2011:i:5:p:682-711

Contact details of provider:

Related research

Keywords: corporate income taxation; tax evasion;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:39:y:2011:i:5:p:682-711. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.