6533b85efe1ef96bd12bfb78

RESEARCH PRODUCT

Evasion of Tax on Interest Income in a Two-Country Model

Georg Tillmann

subject

MicroeconomicsDouble taxationValue-added taxAd valorem taxEconomicsState income taxGross incomeMonetary economicsTax reformInternational taxationIndirect tax

description

t We consider a model where agents can invest money at home and abroad. Their total income comprises interest income from these investments and labor income. Tax on interest income can be evaded — at the risk of being detected and fined. We analyze the optimal portfolio and tax evading decisions of agents with different incomes. In a second step, we scrutinize the optimal government policy. Using different instruments government tries to maximize total tax receipts and to prevent flight of capital as far as possible.

yearjournalcountryeditionlanguage
2001-01-01
https://doi.org/10.1007/978-3-662-04623-4_21