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dc.contributor.authorDamjanovic, Tatianaen_GB
dc.contributor.authorUlph, Daviden_GB
dc.date.accessioned2013-02-18T15:44:05Zen_GB
dc.date.accessioned2013-03-19T15:58:00Z
dc.date.issued2010en_GB
dc.description.abstractThis article examines the determinants of tax non-compliance when we recognise the existence of an imperfectly competitive “tax advice” industry supplying schemes which help taxpayers reduce their tax liability. We apply a traditional industrial organisation framework to model the behaviour of this industry. This tells us that an important factor determining the equilibrium price and hence, the level of non-compliance, is the convexity of the demand schedule. We show that in this context, this convexity is affected by the distribution of pre-tax income, the progressivity of the tax-schedule and the way in which monitoring and penalties vary with income. It is shown that lower pre-tax income inequality as well as a less progressive tax code may cause more tax minimisation activities. Therefore, the frequently advocated policy of reducing the highest tax rate may fail as a policy directed at improving tax discipline. One way of offsetting the possible harm to tax compliance from a less progressive tax could be an adjustment of the penalty and monitoring functions.en_GB
dc.identifier.citationVol. 54, Issue 4, pp. 594 - 607en_GB
dc.identifier.doi10.1016/j.euroecorev.2009.09.003en_GB
dc.identifier.urihttp://hdl.handle.net/10036/4321en_GB
dc.language.isoenen_GB
dc.publisherElsevieren_GB
dc.relation.urlhttp://eureka.bodleian.ox.ac.uk/3281/en_GB
dc.relation.urlhttp://www.sciencedirect.com/science/journal/00142921en_GB
dc.subjectTax complianceen_GB
dc.subjectTax administrationen_GB
dc.subjectInequalityen_GB
dc.subjectTax progressivityen_GB
dc.subjectTax monitoringen_GB
dc.subjectPenalty functionen_GB
dc.titleTax progressivity, income distribution and tax non-complianceen_GB
dc.typeArticleen_GB
dc.date.available2013-02-18T15:44:05Zen_GB
dc.date.available2013-03-19T15:58:00Z
dc.identifier.issn0014-2921en_GB
dc.descriptionPre-print version issued as working paper in 2009 by Oxford University Centre for Business. Final version published by Elsevier; available online at http://www.sciencedirect.com/en_GB
dc.identifier.journalEuropean Economic Reviewen_GB


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