All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
K. L. Glen Ueng and Chiaen J. Wu
 
''A note on the neutrality of profit taxes and tax compliance with imperfect detection''
( 2009, Vol. 29 No.1 )
 
 
In a tax-evasion model with profit tax, we reexamine and clarify the issues of neutrality and separability with imperfect detection of tax fraud. With this more realistic setting, we show that the profit tax is not necessarily neutral and the separability conclusion may not hold. Furthermore, the property of non-neutrality may coexist with that of separability or inseparability. However, in contrast to the traditional conclusion, raising the audit probability may reduce the tax compliance when the property of inseparability is present.
 
 
Keywords:
JEL: H0 - Public Economics: General
H2 - Taxation, Subsidies, and Revenue: General
 
Manuscript Received : Oct 14 2008 Manuscript Accepted : Mar 11 2009

  This abstract has been downloaded 337 times                The Full PDF of this paper has been downloaded 87723 times