Arbeitspapier
Stating import prices wrongly: Possibilities of tax and tariff evasion
This paper examines the possibility of a domestic producer evading taxes and duties by misstating the price of an imported intermediate good. In a qualitative response model it is shown that goverment's revenue maximizing behavior implies a detection function which depends positively on the amount of misdeclaration. As a consequence there exists, for every combination of (linear) import tariff and (linear) income tax, a unique declared price of the imported good which maximizes the expected (true, but not declared) profit. Whether under- or overdeclaration is optimal depends on the relative magnitudes of tax and tariff rates, whereas the amount of misdeclaration is determined by the specification of the detection function and the form of punishment.
- Language
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Englisch
- Bibliographic citation
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Series: Diskussionsbeiträge - Serie II ; No. 138
- Classification
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Wirtschaft
- Event
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Geistige Schöpfung
- (who)
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Schulze, Günther G.
- Event
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Veröffentlichung
- (who)
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Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
- (where)
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Konstanz
- (when)
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1991
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schulze, Günther G.
- Universität Konstanz, Sonderforschungsbereich 178 - Internationalisierung der Wirtschaft
Time of origin
- 1991
Other Objects (12)
Stating import prices wrongly : possibilities of tax and tariff evasion
Containing Tariff Evasion
How does firm tax evasion affect prices?
Measuring tariff evasion and smuggling
Chinese networks and tariff evasion
Fair tax evasion
Timing Tax Evasion
Tax management and tax evasion
Tax Management and Tax Evasion
Tax Progressivity and Tax Evasion
Tariff Evasion, the Trade Gap, and Structural Trade
Tax Evasion, Corruption and tax Loopholes
Stating import prices wrongly : possibilities of tax and tariff evasion
Containing Tariff Evasion
How does firm tax evasion affect prices?
Measuring tariff evasion and smuggling
Chinese networks and tariff evasion
Fair tax evasion
Timing Tax Evasion
Tax management and tax evasion
Tax Management and Tax Evasion
Tax Progressivity and Tax Evasion
Tariff Evasion, the Trade Gap, and Structural Trade
Tax Evasion, Corruption and tax Loopholes
Stating import prices wrongly : possibilities of tax and tariff evasion
Containing Tariff Evasion
How does firm tax evasion affect prices?
Measuring tariff evasion and smuggling
Chinese networks and tariff evasion
Fair tax evasion
Timing Tax Evasion
Tax management and tax evasion
Tax Management and Tax Evasion
Tax Progressivity and Tax Evasion
Tariff Evasion, the Trade Gap, and Structural Trade