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on Informal and Underground Economics |
| By: | Benoît Walraevens (CREM - Centre de recherche en économie et management - CNRS - Centre National de la Recherche Scientifique - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - UNICAEN - Université de Caen Normandie - NU - Normandie Université) |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03554121&r= |
| By: | Rocco Caferra Author-Name-First Rocco (Department of Economics, Universitat Jaume I, Castellón, Spain and Department of Economics, Management and Business Law, University of Bari “Aldo Moro”, Italy); Alessandro Cascavilla Author-Name-First Alessandro (Department of Economics, Universitat Jaume I, Castellón, Spain and Department of Economics, Management and Business Law, University of Bari “Aldo Moro”, Italy); Andrea Morone (Department of Economics, Management and Business Law, University of Bari “Aldo Moro”, Italy) |
| Abstract: | This paper aims to shed lights on the relationship between intergenerational mobility and tax morale. We show that higher intergenerational mobility increases tax morale among European countries. This linkage is stronger and significant in countries where there is a commitment of the Government in guaranteeing more opportunities to citizens regardless of their familiar starting conditions (more defamiliarized countries). We further show that the positive linkage between intergenerational mobility and tax morale is significant only for individuals claiming for independence from their family context (i.e., those having less family ties). The results are quite robust across different estimation strategies, including an instrumental-variables methodology. This evidence remarks the importance to foster intergenerational mobility to build a more tax-compliant society. |
| Keywords: | Tax Evasion and Avoidance, Job, Occupational, and Intergenerational Mobility; Promotion |
| JEL: | H26 J62 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2022/09&r= |
| By: | Alessandro Cascavilla Author-Name-First Alessandro (Department of Economics, Universitat Jaume I, Castellón, Spain and Department of Economics, Management and Business Law, University of Bari “Aldo Moro”, Italy); Jordi Ripollés (Institute of International Economics and Department of Economics, Universitat Jaume I, Castellón, Spain); Andrea Morone (Department of Economics, Management and Business Law, University of Bari “Aldo Moro”, Italy) |
| Abstract: | Despite the extensive literature examining determinants of tax morale, little is still known about the relationship between the associational involvement of citizens and their willingness to pay taxes. Given the insights offered by the social capital literature regarding the role of voluntary organisations in shaping civic engagement, this study sets out to empirically investigate how membership of different types of associations could influence individual tax morale in Europe. With this in mind, we exploit the information available in the fifth wave of the European Values Study (EVS, 2017) for citizens of 34 countries. Unlike previous studies on tax morale, we classify the types of voluntary associations depending on their potential to build out-group “bridging” or in-group “bonding” social ties. In this study, to carry out the classification, three alternative approaches are considered which are based on the socio-demographic heterogeneity within associations, the interconnections between them, and a combination of both. Our findings show that, after controlling for different individual characteristics and country-specific unobserved heterogeneity, those survey respondents involved in bridging associations tend to exhibit higher levels of tax morale, while the opposite is found for bonding associations. The results are quite robust for the three approaches and different estimation strategies, including an instrumentalvariables methodology. In view of our findings, policies aimed at incentivising volunteering activities in more connected associations and in those that include more heterogeneous members seem appropriate to promote the public spiritedness of citizens. |
| Keywords: | tax morale; social capital; volunteering |
| JEL: | C25 H26 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2022/10&r= |
| By: | Clemens Fuest; Stefan Greil; Felix Hugger; Florian Neumeier |
| Abstract: | This paper uses micro data from country-by-country reporting of more than 3600 large multinational companies operating in 238 jurisdictions to analyze global profit shifting to avoid taxes. These companies report 7% of their global profits in jurisdictions with effective average tax rates below 5%, but only 0.4% of their employees and 3% of their tangible assets are located there. We find that globally, these companies reduce their tax burden by EUR 53 billion (15% of their overall tax payments) by shifting profits to low-tax countries. Losses of the US and Canada are slightly lower, the losses of the EU 27 member states are similar to the global average. 60% of the profit shifting is carried out by the 10% largest multinational companies. We show that taking into account non-linearities in profit shifting and subsidiaries reporting zero profits is of key importance for accurate estimates of profit shifting. We also investigate profit shifting channels and provide evidence suggesting that the location of IP and equity in low tax countries as well as the provision of loans to entities in high tax countries play a key role for tax planning. |
| Keywords: | : corporate taxation, tax avoidance, profit shifting, multinational enterprises, country-by-country reporting |
| JEL: | F23 H25 H26 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9757&r= |