IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v58y1982i4p379-385.html
   My bibliography  Save this article

A Tax Evasion Model with Allowance for Retroactive Penalties

Author

Listed:
  • J. A. RICKARD
  • A. M. RUSSELL
  • T. D. HOWROYD

Abstract

Discrete models of tax evasion are considered when evasion has occurred over a period of several years. Allowance is made for growth in income, investment of illicit gains from successful evasion, and the imposition of retroactive penalties. Retroactive penalties increase deterrence of evasion if introduced at a point where evasion has been continuing for some years, since the utility gain from continuing successful evasion is unaffected, whereas the utility loss will be increased regardless of attitude to risk. Prohibitive penalty rates are determined, and a range of penalty rates are given in which some dishonest taxpayers may become honest. The formulation of the basic model and consequent conclusions are relevant to the current Australian taxation scene.

Suggested Citation

  • J. A. Rickard & A. M. Russell & T. D. Howroyd, 1982. "A Tax Evasion Model with Allowance for Retroactive Penalties," The Economic Record, The Economic Society of Australia, vol. 58(4), pages 379-385, December.
    • Handle: RePEc:bla:ecorec:v:58:y:1982:i:4:p:379-385
    DOI: 10.1111/j.1475-4932.1982.tb00389.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1982.tb00389.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1982.tb00389.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. repec:bla:ecorec:v:55:y:1979:i:150:p:267-70 is not listed on IDEAS
    2. Geoffrey Fishburn, 1979. "On How to Keep Tax Payers Honest (or almost so)," The Economic Record, The Economic Society of Australia, vol. 55(3), pages 267-270, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. James Alm & James C. Cox & Vjollca Sadiraj, 2020. "Audit State Dependent Taxpayer Compliance: Theory And Evidence From Colombia," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 819-833, April.
    2. Eduardo Engel & James R. Hines Jr., 1998. "Understanding Tax Evasion Dynamics," Documentos de Trabajo 47, Centro de Economía Aplicada, Universidad de Chile.
    3. James Alm, 2019. "What Motivates Tax Compliance?," Journal of Economic Surveys, Wiley Blackwell, vol. 33(2), pages 353-388, April.
    4. Josef Falkinger & Herbert Walther, 1991. "Rewards Versus Penalties: on a New Policy against Tax Evasion," Public Finance Review, , vol. 19(1), pages 67-79, January.
    5. Alm, James & McKee, Michael, 2004. "Tax compliance as a coordination game," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 297-312, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Reinganum, Jennifer F. & Wilde, Louis L., 1985. "Income tax compliance in a principal-agent framework," Journal of Public Economics, Elsevier, vol. 26(1), pages 1-18, February.
    2. Shlomo Yitzhaki, 1987. "On the Excess Burden of Tax Evasion," Public Finance Review, , vol. 15(2), pages 123-137, April.
    3. J. C. Baldry, 1984. "The Enforcement of Income Tax Laws: Efficiency Implications," The Economic Record, The Economic Society of Australia, vol. 60(2), pages 156-159, June.
    4. Iulia CAPRIAN & Iurie CAPRIAN, 2015. "Role Of Tax Penalties In Taxpayers Education," ECONOMY AND SOCIOLOGY: Theoretical and Scientifical Journal, Socionet;Complexul Editorial "INCE", issue 1, pages 78-84.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:58:y:1982:i:4:p:379-385. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.