Tax compliance under tax regime changes

Friedrich Heinemann and Martin Kocher

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: In this paper we focus on the compliance effects of tax regime changes. According to the economic model of tax evasion, a tax reform should affect compliance through its impact on tax rates and incentives. Our findings demonstrate the importance of at least two further effects not covered by the traditional model: First, reform losers tend to evade more taxes after the reform. Second, a reform from a proportionate to a progressive system decreases compliance compared to a switch in the reverse direction. However, the level of compliance is generally higher under a progressive than under a proportionate regime.

JEL-codes: C72 C91 H26 (search for similar items in EconPapers)
Date: 2013-04
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Citations: View citations in EconPapers (24)

Published in International Tax and Public Finance 2 20(2013-04): pp. 225-246

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Related works:
Journal Article: Tax compliance under tax regime changes (2013)
Working Paper: Tax compliance under tax regime changes (2010)
Working Paper: Tax compliance under tax regime changes (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:18179

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