Sound taxation? On the use of self-declared value

Marco Haan, Pim Heijnen, Lambert Schoonbeek and Linda A. Toolsema

European Economic Review, 2012, vol. 56, issue 2, 205-215

Abstract: In the 16th century, foreign ships passing through the Sound had to pay ad valorem taxes, known as the Sound Dues. To give skippers an incentive to declare the true value of their cargo, the Danish Crown reserved the right to purchase it at the declared value. We show that this rule does not induce truth-telling, but does allow the authorities to effectively implement a given tax rate.

Keywords: Signaling; Taxation (search for similar items in EconPapers)
JEL-codes: C72 H21 N7 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Working Paper: Sound taxation? On the use of self-declared value (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:56:y:2012:i:2:p:205-215

DOI: 10.1016/j.euroecorev.2011.09.003

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