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A Theory of Tax Evasion in Developing Countries

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  • Errol D'souza

Abstract

This paper argues that taxpayers use tax evasion to compensate for imperfect financial markets as well as government expenditure patterns that do not benefit them. This paper demonstrates that imperfect financial markets result in situations where when individuals find the chance of earning high returns from investments; it causes them to overcome their aversion to risk and participate in actuarially unfair tax evasion gambles. [W.P. No. 2016-03-37]

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  • Errol D'souza, 2016. "A Theory of Tax Evasion in Developing Countries," Working Papers id:11040, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:11040
    Note: Institutional Papers
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    References listed on IDEAS

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    Keywords

    Tax evasion; development;

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