“Tax Avoision”: Two Faces of the Same Coin
Abstract:
“Tax avoision” is the term used for the cases where tax avoidance hides an oper-ation of tax evasion. Normally is connected to an offshore operation where a taxpayer search for an opportunity to avoid taxes. Instead of declaring the exist-ence of an account outside on offshore, the taxpayer simply hides it from tax au-thority. In the most of the cases the problem is not the hiding of the account but the origin of the money. In order to understand the economic impact of these op-erations we have developed an extension into our θ model where the main focus is the origin of the money and the connections that arise among multiple agents. This article analyses the impact of “tax avoision” on wealth distribution and on gross domestic product. After several simulations, we conclude that there is a little impact in terms of wealth distribution but a high impact inside of gross domestic economy.