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.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||The main goal of this thesis is to examine the efect of Czech's 2008
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 dierence-in-dierence
approach, we nd no eect 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.