A PRIMER ON TAX EVASION

Tax evasion is universal. It depends on the economic and tax structure s, types of income, and social attitudes. The theory of tax evasion ha s limitations since it rests solely on attitudes toward risk, with ful l information regarding the tax administration's behavior. Methodologi es for estimating tax evasion include estimating the underground econo my and comparing declared taxes with potential tax revenue calculated from national accounts. Measures to address tax evasion include use of withholding, presumptive and minimum taxes, selective auditing, penal ties, and cross checks between taxes. [JEL H26]