Economics of tax evasion: The effect of Czech's 2008 flat rate personal income tax on tax evasion
| Author: | Mgr. Pavel Hrbek |
|---|---|
| Year: | 2011 - summer |
| Leaders: | PhDr. Jan Zápal Ph.D. |
| Consultants: | |
| Work type: | Finance, Financial Markets and Banking Masters |
| Language: | English |
| Pages: | 87 |
| Awards and prizes: | |
| Link: | |
| Abstract: | The main goal of this thesis is to examine the efect of Czech's 2008 at rate personal income tax reform on consumption, income and tax evasion since there is a belief that personal income tax rates are partially responsible for high levels of tax evasion. We use the gap between household expenditures and reported income as a proxy for tax evasion with the Czech microeconomic data from the 2006-2008 Household Budget Survey. Employing di erence-in-di erence approach, we nd no e ect of the Czech at personal income tax rate on tax evasion for households with one economically active individual in the year 2008 relative to households experiencing no change. |
