IDEAS home Printed from https://ideas.repec.org/a/mul/je8794/doi10.1429-30792y2009i3p333-348.html
   My bibliography  Save this article

Tax evasion and misreporting in income tax returns and household income surveys

Author

Listed:
  • Massimo Baldini
  • Paolo Bosi
  • Michele Lalla

Abstract

This paper studies tax evasion and misreporting by comparing data from income tax files and a survey of household incomes, both relative to a medium-size Italian town. The novelty of our approach lies in the use of individual microdata, obtained by "exact matching" between the two data sources. As usual, the adopted proxy for tax evasion is the difference between survey income and tax-declared income. Our results lend support to the widely shared belief that in Italy the propensity to evade is higher among the self-employed. However, our findings do not bear out the existence, which emerged in previous studies, of a negative relationship between tax evasion and income levels. Underreporting seems to be concentrated in the lowest income deciles, while the level of tax evasion is higher at the top of the income distribution. Notwithstanding the reliability of the statistical base, our results must be accepted with caution, as the measure of tax evasion adopted is not able to make a clear distinction between evasion and misreporting.

Suggested Citation

  • Massimo Baldini & Paolo Bosi & Michele Lalla, 2009. "Tax evasion and misreporting in income tax returns and household income surveys," Politica economica, Società editrice il Mulino, issue 3, pages 333-348.
  • Handle: RePEc:mul:je8794:doi:10.1429/30792:y:2009:i:3:p:333-348
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1429/30792
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.rivisteweb.it/doi/10.1429/30792
    Download Restriction: no

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Felix Schmutz, 2016. "Measuring the Invisible: An Overview of and Outlook for Tax Non-Compliance Estimates and Measurement Methods for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 152(II), pages 125-177, June.
    2. Paulus, Alari, 2015. "Tax evasion and measurement error: An econometric analysis of survey data linked with tax records," ISER Working Paper Series 2015-10, Institute for Social and Economic Research.
    3. Elek, Peter & Köll?, János, 2017. "Eliciting Permanent and Transitory Undeclared Work from Matched Administrative and Survey Data," IZA Discussion Papers 10800, Institute for the Study of Labor (IZA).
    4. repec:spr:sjecst:v:152:y:2016:i:2:d:10.1007_bf03399425 is not listed on IDEAS
    5. Peter Elek & Janos Kollo, 2016. "Eliciting permanent and transitory undeclared work from matched administrative and survey data," Budapest Working Papers on the Labour Market 1605, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:je8794:doi:10.1429/30792:y:2009:i:3:p:333-348. 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: (). General contact details of provider: https://www.rivisteweb.it/ .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.