Corporate Tax Evasion: the Case for Specialists
AbstractEconomists agree that accounting specialists are helpful in avoiding taxes. We argue that such help can often be called sophisticated evasion. We analyze it in a game of incomplete information played by tax authority, corporate taxpayers and accounting specialist. When sophisticated evasion is very common, marginal changes in enforcement are not effective, so radical measures are needed for improving compliance. Fines on firms as opposed to specialist are more effective in facilitating such measures. When the evasion is modest, auditing and accounting costs as opposed to fines are more effective in curbing it.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 14181.
Date of creation: May 2005
Date of revision: Mar 2009
tax evasion; tax avoidance; sophisticated evasion;
Other versions of this item:
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
This paper has been announced in the following NEP Reports:
- NEP-ACC-2009-04-05 (Accounting & Auditing)
- NEP-ALL-2009-04-05 (All new papers)
- NEP-PBE-2009-04-05 (Public Economics)
- NEP-PUB-2009-04-05 (Public Finance)
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