Itemised Deductions: A Device to Reduce Tax Evasion

Piolatto, Amedeo

doi:10.2139/ssrn.1629118

Cited by 4 publications

(2 citation statements)

References 17 publications

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“…Piolatto () deals with tax rebates when the legal and underground markets are separate. Although his model is not a proper representation of cooperative tax evasion, he reaches conclusions similar to ours: it is possible to increase the tax proceeds by choosing a suitable level of tax rebate.…”

Section: Related Literaturementioning

confidence: 99%

Fighting Tax Evasion by Discouraging the Use of Cash?

Immordino

Russo

2018

Fiscal Studies

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We propose a bargaining model of tax evasion with a seller that offers a price discount to a buyer in exchange for a cash payment without a receipt, which allows tax evasion. We study the effect on evasion and government revenue of two policy instruments: a tax on cash withdrawals (TCW), which imposes a cost on the buyers who pay cash, and a tax rebate conditional on having the receipt. The tax rebate reduces evasion but it is costly if tax evasion is low. The TCW reduces evasion only if it is set at a sufficiently high rate, which must be higher the larger is the mass of cash users. We also show that the implementation of a TCW, which poses several challenges, is easier if the cost of cash hoarding is high.

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Section: Related Literaturementioning

confidence: 99%

Fighting Tax Evasion by Discouraging the Use of Cash?

Immordino

Russo

2018

Fiscal Studies

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“…In terms of policies (other than cash thresholds) designed to curb evasion through a reduction in cash transactions, Benshalom (2012) proposes a tax on cash withdrawals at ATMs and bank tellers, and Immordino and Russo (2018b) extensively analyse the effect of such a policy. Piolatto (2015) and Immordino and Russo (2018b) study, within different frameworks, a generalised tax rebate conditional on showing the transaction receipt, and their results could be extended to a rebate based on the use of cashless payments. A further alternative is a lottery 6 whose tickets are the payment card receipts, which was shown to be effective at reducing evasion in China 7 and Brazil.…”

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confidence: 99%

Cash thresholds, cash expenditure and tax evasion

Russo

2022

Fiscal Studies

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I investigate whether cash thresholds that forbid cash payments on big transactions are effective at reducing tax evasion. I find that the 1000 euros threshold implemented in Italy in 2011 induced a bigger cash expenditure reduction for the households with self employed members, and the more so in case they work in cash intensive sectors. With the help of a simple model, I show that this empirical evidence suggests a tax evasion reduction, and I compute the tax revenue increase implied by the empirical estimates. Calibrating the model, I also perform a counterfactual exercise to quantify the potential effects of lower thresholds.

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Electricity Futures Prices: Time Varying Sensitivity to Fundamentals

et al. 2014

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Within the IEB framework, the Chair of Energy Sustainability promotes research into the production, supply and use of the energy needed to maintain social welfare and development, placing special emphasis on economic, environmental and social aspects. There are three main research areas of interest within the program: energy sustainability, competition and consumers, and energy firms. The energy sustainability research area covers topics as energy efficiency, CO2 capture and storage, R+D in energy, green certificate markets, smart grids and meters, green energy and biofuels. The competition and consumers area is oriented to research on wholesale markets, retail markets, regulation, competition and consumers. The research area on energy firms is devoted to the analysis of business strategies, social and corporative responsibility, and industrial organization. Disseminating research outputs to a broad audience is an important objective of the program, whose results must be relevant both at national and international level.The Chair of Energy Sustainability of the University of Barcelona-IEB is funded by the following enterprises ACS, CEPSA, CLH, Enagas, Endesa, FCC Energia, HC Energia, Gas Natural Fenosa, and Repsol) through FUNSEAM (Foundation for Energy and Environmental Sustainability). The IEB working papers represent ongoing research that is circulated to encourage discussion and has not undergone a peer review process. Any opinions expressed here are those of the author(s) and not those of IEB. Documents de Treball de l'IEB 2014/21 ELECTRICITY FUTURES PRICES: TIME VARYING SENSITIVITY TO FUNDAMENTALSStein-Erik Fleten, Ronald Huisman, Mehtap Kilic, Enrico Pennings, Sjur Westgaard ABSTRACT: This paper provides insight in the time-varying relation between electricity futures prices and fundamentals in the form of prices of contracts for fossil fuels. As supply curves are not constant and different producers have different marginal costs of production, we argue that the relation between electricity futures prices and futures prices of underlying fundamentals such as natural gas, coal and emission rights are not constant and vary over time. We test this view by applying a model that linearly relates electricity futures prices to the marginal costs of production and calculate the log-likelihood of different time-varying and constant specifications of the coefficients. To do so, we formulate the model in state-space form and apply the Kalman Filter to observe the dynamics of the coefficients. We analyse historical prices of futures contracts with different delivery periods (calendar year and seasons, peak and off-peak) from Germany and the U.K. The results indicate that analysts should choose a time-varying specification to relate the futures price of power to prices of underlying fundamentals.JEL Codes: Q41, Q48, C51

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Itemised Deductions: A Device to Reduce Tax Evasion

Cited by 4 publications

References 17 publications

Fighting Tax Evasion by Discouraging the Use of Cash?

Fighting Tax Evasion by Discouraging the Use of Cash?

Cash thresholds, cash expenditure and tax evasion

Electricity Futures Prices: Time Varying Sensitivity to Fundamentals

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