In this paper we examine how the presence of international tax evasion affects the choice of a foreign tax credit by a capital exporting region. Since the credit raises the opportunity cost of concealing foreign source income, it can be employed to discourage evasion activity. International rax evasion can thus help to rationalize the adoption of a tax credit in excess of a deduction-equivalent rate.
|Number of pages||16|
|Journal||Canadian Journal of Economics|
|Publication status||Published - 2001|
ASJC Scopus subject areas
- Economics and Econometrics