A Theory of Tax Evasion in Developing Countries

Published By: Indian Institute of Management, Ahmedabad on eSS | Published Date: March , 2016

This paper argues that taxpayers use tax evasion to compensate for imperfect financial markets as well as government expenditure patterns that do not benefit them. This paper demonstrates that imperfect financial markets result in situations where when individuals find the chance of earning high returns from investments; it causes them to overcome their aversion to risk and participate in actuarially unfair tax evasion gambles. [W.P. No. 2016-03-37]

Author(s): Errol D'souza | Posted on: Jul 07, 2016 | Views() | Download (960)


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