How to tax capital in a globalized world? Lessons from population-wide administrative data

How to tax capital in a globalized world? Lessons from population-wide administrative data

  • Tax haven Skatteparadis
    Photo
    Bruce Rolff, Shutterstock

There is growing concern about the practicality of taxing capital in a globalized world. Half of the world's foreign direct investments are routed through offshore tax havens. In April 2016, The Panama Papers showed that rich individuals routinely use shell companies in tax havens to avoid or evade taxes.

Still, little is known about who evades capital taxes, why, and to which extent. Current estimates on offshore tax evasion are based on aggregate data.

We combine Scandinavian administrative micro data with information from Swiss Leaks, Panama Papers, voluntary disclosure of hidden offshore wealth, and random audits to provide new insights in the anatomy of capital tax evasion and how tax evasion varies across the wealth distribution. By combining our results with aggregate data, we can construct revised estimates of income and wealth inequality all over the world, when taking into account income and wealth that is unreported to tax authorities. We also aim at providing credible causal es timates of how capital taxation affects international tax evasion.

External participants

Niels Johannesen, University of Copenhagen

Gabriel Zucman, UC Berkeley

Relatert innhold: f.eks omtaler og nyheter
Department
Handelshøyskolen
Timeframe
01.01.2017 to 31.12.2019

Norwegian University of Life Sciences (NMBU)

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