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Cash thresholds, cash expenditure and tax evasion

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  • Francesco Flaviano Russo

Abstract

Using data for Italy, I show that cash thresholds that forbid the use of cash for big transactions are effective tools to reduce cash income and cash circulation. Less cash income, in turn, hinders tax evasion. I present an estimate of the increase in tax revenue implied by the empirically estimated reduction of cash income determined by the thresholds.

Suggested Citation

  • Francesco Flaviano Russo, 2022. "Cash thresholds, cash expenditure and tax evasion," Fiscal Studies, John Wiley & Sons, vol. 43(4), pages 387-403, December.
    • Handle: RePEc:wly:fistud:v:43:y:2022:i:4:p:387-403
    DOI: 10.1111/1475-5890.12311
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    2. Rainone, Edoardo, 2023. "Tax evasion policies and the demand for cash," Journal of Macroeconomics, Elsevier, vol. 76(C).

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