September 2018 The research seminar is held every Wednesday, 1.15 – 2.45 p.m., in room LG 0.423.
Exceptions: On 21/11/2018 and on 12/12/2018 the event is held in room 4.154!
Here you can download the Program NRSE 2018/2019 Fall.

Room LG 0.423

Dirk Foremny (University of Barcelona):
“Income Shifting and Tax Evasion: Evidence from an Uruguayan Tax Reform”


This paper provides novel empirical evidence on intertemporal income shifting as a consequence of a large tax reform in Uruguay. We exploit VAT and income tax returns at the individual level. We observe this information for the universe of individuals that declare activity as liberal professionals (e.g. lawyers, public notaries, architects and accountants) during the years around the reform. Using a difference-in-difference approach, we document large shifting responses of personal business income in the period before the reform was implemented. After controlling for fixed effects, on average, an amount of 53,600 Uruguayan pesos (approx. 2,260 USD) is shifted in order to receive a beneficial fiscal treatment. This amount represent 57.3 % of the average reported income in 2008/2008. The income shifted increases up to 89.8 and 144.2 % of the average reported income for the top 5 and top 1 percentiles respectively. Furthermore,we show that public notaries, lawyers and taxpayers from the capital city respond much stronger, which suggests that income shifting, as a means of tax evasion, depends on the information spillovers and the salience of the tax reform.