Tax Avoidance and Intra-Family Transfers

Katarina Nordblom () and Henry Ohlsson

No 2005:6, Working Paper Series from Uppsala University, Department of Economics

Abstract: To what extent do people avoid taxes on intra-family transfers (bequests and gifts), and how would integration (unification) of the different transfers taxes affect tax avoidance? These issues are important for families and their welfare, as well as for governments and their possibilities of raising revenue from transfer taxes. In this paper we study the effects of transfer taxes on altruistic parents’ transfers to their children. Using a theoretical model we find that altruistic parents do not necessarily tax minimize. However, in some cases when they do, there is an infinitely large excess burden of a transfer tax. We also find that integration of transfer taxes reduces tax avoidance. All tax avoidance is eliminated with complete integration.

Keywords: tax avoidance; bequests; inheritances; inter vivos gifts; altruism (search for similar items in EconPapers)
JEL-codes: D10 D64 D91 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2005-02-15
New Economics Papers: this item is included in nep-acc and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Journal of Public Economics, 2006, pages 1669-1680.

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Related works:
Journal Article: Tax avoidance and intra-family transfers (2006)
Working Paper: Tax avoidance and intra-family transfers (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:uunewp:2005_006

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