INTERNATIONAL TAX EVASION: Sources, Paths, and Destinations


This comprehensive review of personal tax evasion focuses on country and system characteristics linked to tax evasion, the economic impact of lost tax revenues, and the resulting policy responses to combat tax evasion. Certain country and system characteristics are specific to tax haven countries, countries that are more inclined to evade taxes, and individuals who engage in such evasion. We discuss the underlying motivation to evade taxes and differentiate between tax avoidance, frequently used by corporations for tax planning, and tax evasion. We further analyze empirical studies on evasion via roundtripping and bank deposits, followed by considerations of the impact of leaked documents (e.g., Panama Papers) and subsequent tax amnesty programs. Finally, we review policies designed to limit tax evasion and conclude with the latest developments.

Publication Title

The Routledge Handbook of Comparative Economic Systems