Economics of tax evasion: The effect of Czech's 2008 flat rate personal income tax on tax evasion
Author: | Mgr. Pavel Hrbek |
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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 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. |