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Does political intention affect tax evasion?

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  • Kim, Sangheon

Abstract

For quite sometime, tax evasion has attracted many researchers' attention in the field of public finance. Not enough attention, however, has been paid to the effects of political factors on tax evasion. This paper intends to provide an economic model of tax evasion, considering the interactions between tax authority and its sovereign government. It shows that tax evasion is influenced by the government's intention to control the economy, controlling for other determinants of tax evasion. The theoretical predictions are examined with annual data from the competitiveness reports published by the IMD and the WEF. The empirical evidence supports the theoretical model to a large extent.

Suggested Citation

  • Kim, Sangheon, 2008. "Does political intention affect tax evasion?," Journal of Policy Modeling, Elsevier, vol. 30(3), pages 401-415.
  • Handle: RePEc:eee:jpolmo:v:30:y:2008:i:3:p:401-415
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    References listed on IDEAS

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    Cited by:

    1. Yi-Chung Hsu & Chien-Chiang Lee, 2016. "Factors Affecting Tax Evasion: Do Interest Rate And Regional Effects Matter?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(04), pages 1-23, September.
    2. Mohammad Abd Alaffo AlAdham & Mohammed Abdallah Abukhadijeh & Mohammad Fayez Qasem, 2016. "Tax Evasion and Tax Awareness Evidence from Jordan," International Business Research, Canadian Center of Science and Education, vol. 9(12), pages 65-75, December.
    3. Misbah Kiani & Adeel Ahmed & Khalid Zaman, 2015. "Combining qualitative and quantitative approaches for measuring underground economy of Pakistan," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(1), pages 295-317, January.
    4. Raitano, Michele & Fantozzi, Roberto, 2015. "Political cycle and reported labour incomes in Italy: Quasi-experimental evidence on tax evasion," European Journal of Political Economy, Elsevier, vol. 39(C), pages 269-280.

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