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Tax Avoidance in Buenos Aires: The Case of Ingresos Brutos

Author

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  • Carolina Ines Pan

    (Center for International Development at Harvard University)

Abstract

This study presents evidence of tax avoidance in Buenos Aires, Argentina. I exploit a break in the tax scheme of the most controversial tax, Ingresos Brutos (gross income), between the city and the greater area, which are otherwise identical law and regulation-wise for the studied population. When possible, workers would rather travel longer distances to their jobs than face the tax burden. Given that this type of avoidance is costly, results suggest that Ingresos Brutos might be acting as a binding constraint to growth for businesses.

Suggested Citation

  • Carolina Ines Pan, 2019. "Tax Avoidance in Buenos Aires: The Case of Ingresos Brutos," CID Working Papers 117a, Center for International Development at Harvard University.
    • Handle: RePEc:cid:wpfacu:117a
    as

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    File URL: https://growthlab.cid.harvard.edu/files/growthlab/files/2019-09-cid-fellows-wp-117-tax-avoidance-buenos-aires.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Taxes; Tax Avoidance; Gross Income; Binding Constraints;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • K2 - Law and Economics - - Regulation and Business Law

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