Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/34042
Authors: 
Goerke, Laszlo
Year of Publication: 
2006
Series/Report no.: 
IZA Discussion Papers 2239
Abstract: 
Decisions by firms and individuals on the extent of their tax payments have generally been treated as separate choices. Empirically, a positive relationship between corporate and personal income tax evasion can be observed. The theoretical analysis in this paper shows that a manager's decision on the firm's behaviour will be independent of his personal preferences if the gain from reducing corporate tax payments is certain, as in the case of tax avoidance. If, however, the firm evades taxes so that the manager's income depends on whether the firm's activities are detected or not, corporate and personal income tax evasion choices cannot be separated.
Subjects: 
firms
individuals
tax evasion
uncertainty
JEL: 
H24
H25
H26
Document Type: 
Working Paper

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