Seminar: Tax Evasion and Inequality
Drawing on a unique dataset of leaked customer lists from offshore financial institutions matched to administrative wealth records in Scandinavia, we show that offshore tax evasion is highly concentrated among the rich. The skewed distribution of offshore wealth implies high rates of tax evasion at the top: we find that the 0.01% richest households evade about 25% of their taxes. By contrast, tax evasion detected in stratified random tax audits is less than 5% throughout the distribution. Top wealth shares increase substantially when accounting for unreported assets, highlighting the importance of factoring in tax evasion to properly measure inequality.
Bio in Brief
Annette Alstadsæter is a Professor at the Norwegian University of Life Science. She is head of the Department for Tax and behavior research. Annette's current work in progress, and the paper she is going to present at the seminar, is joint work with Niels Johannesen and Gabriel Zucman
CBS, Department of Economics
Meeting room 2.80