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So close and yet so far: the ability of mandatory disclosure rules to crack down on offshore tax evasion

Author

Listed:
  • Elisa Casi
  • Mohammed Mardan
  • Rohit Reddy Muddasani

Abstract

We study the short-term effect of the introduction of the mandatory disclosure programme for aggressive tax arrangements by focusing on the one introduced in May 2018 under Council Directive 2018/288/EU (or DAC6). Employing bilateral data on cross-border deposits, we study the effect of this new disclosure requirement on cross-border tax evasion. Our results show a reduction of cross-border deposits in EU countries with strong enforcement, captured by large monetary penalties for misreporting.

Suggested Citation

  • Elisa Casi & Mohammed Mardan & Rohit Reddy Muddasani, 2022. "So close and yet so far: the ability of mandatory disclosure rules to crack down on offshore tax evasion," WIDER Working Paper Series wp-2022-116, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2022-116
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    References listed on IDEAS

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    Cited by:

    1. Casi, Elisa & Mardan, Mohammed & Stage, Barbara M. B., 2023. "Citizenship/Residence by Investment and Digital Nomad Visas: The Golden Era of Individual Tax Evasion and Avoidance?," Discussion Papers 2023/12, Norwegian School of Economics, Department of Business and Management Science.

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    Keywords

    Tax evasion; Income under-reporting; Regulation; Wealth; Income;
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