Corporate and Personal Income Tax Declarations

Laszlo Goerke

No 2239, IZA Discussion Papers from Institute of Labor Economics (IZA)

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.

Keywords: individuals; tax evasion; uncertainty; firms (search for similar items in EconPapers)
JEL-codes: H24 H25 H26 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2006-07
New Economics Papers: this item is included in nep-pbe and nep-pub
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Citations: View citations in EconPapers (1)

Published - published in: International Tax and Public Finance, 2007, 14(3), 281-292

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Journal Article: Corporate and personal income tax declarations (2007)
Working Paper: Corporate and Personal Income Tax Declarations (2006)
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