Income Tax Evasion: A Theoretical Analysis
Income Tax Evasion: A Theoretical Analysis
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DOI:
10.11228/pcs1981.1986.8_67
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发表时间:
1986-12
期刊:
影响因子:
--
通讯作者:
Shigeru Watanabe
中科院分区:
文献类型:
--
作者:
Shigeru Watanabe
In the pioneering Allingham-Sandmo model the taxpayer has to pay tax on the undeclared income at a penalty rate rr. This assumption has led to the conclusion that as the regular tax rate increases the income evaded increases under some conditions of risk-aversion.But in the excellent Yitzhaki model'the fine is assumed to be imposed on the evaded tax, as it is under the American or Israeli tax laws. This assumption has led to the different conclusion that as the regular tax rate increases the income evaded decreases when the taxpayer has the absolute risk aversion which decreases with income. With regard to the assumptions the Yitzhaki model may be preferable to the Allingham-Sandmo model, because the former is based on the prevailing tax laws. But, concerning the results the Yitzhaki model seems somewhat less relevant to introspection than the Allingham-Sandmo model, since at the sufficiently high (low) regular tax rate the incentive to evade the tax seems to get strong (weak).