IMF Working Papers

A Primeron Tax Evasion

Author/Editor:

Vito Tanzi ; Parthasarathi Shome

Publication Date:

March 1, 1993

Summary:

Tax evasion is universal. It depends on the economic and tax structures, types of income, and social attitudes. The theory of tax evasion has limitations since it depends solely on the attitude toward risk with full information regarding the tax administration’s behavior. Methodologies for estimating tax evasion include predominantly estimating the underground economy, and comparing taxes declared with potential tax revenue calculated from national accounts. Actions in addressing tax evasion include use of withholding, presumptive and minimum taxes, selective auditing, penalties, and cross checks between taxes.

Series:

Working Paper No. 1993/021

Subject:

Compliance costs Income tax systems Revenue administration Tax administration core functions Tax evasion Taxes

Notes:

Also published in Staff Papers, Vol. 40, No. 4, December 1993.