Tax Evasion and Swiss Bank Deposits

Publikation: Working paperForskning

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Tax Evasion and Swiss Bank Deposits. / Johannesen, Niels.

Department of Economics, University of Copenhagen, 2010.

Publikation: Working paperForskning

Harvard

Johannesen, N 2010 'Tax Evasion and Swiss Bank Deposits' Department of Economics, University of Copenhagen.

APA

Johannesen, N. (2010). Tax Evasion and Swiss Bank Deposits. Department of Economics, University of Copenhagen.

Vancouver

Johannesen N. Tax Evasion and Swiss Bank Deposits. Department of Economics, University of Copenhagen. 2010.

Author

Johannesen, Niels. / Tax Evasion and Swiss Bank Deposits. Department of Economics, University of Copenhagen, 2010.

Bibtex

@techreport{c5e3bd30e27211dfb6d2000ea68e967b,
title = "Tax Evasion and Swiss Bank Deposits",
abstract = "Bank deposits in jurisdictions with banking secrecy constitute an effective tool to evade taxes on interest income. A recent EU reform reduces the scope for this type of tax evasion by introducing a source tax on interest income earned by EU residents in Switzerland and several other jurisdictions with banking secrecy. In this paper, we estimate the impact of the source tax on Swiss bank deposits held by EU residents while using that non-EU residents were not subject to the tax to apply a natural experiment methodology. We find that the 15% source tax caused Swiss bank deposits of EU residents to drop by more than 40% with most of the response occurring in two quarters immediately before and after the source tax was introduced. The estimates imply an elasticity of Swiss deposits with respect to the net-of-source-tax-rate in the range 2.5-3.",
keywords = "Faculty of Social Sciences, capital taxation, savings directive",
author = "Niels Johannesen",
year = "2010",
language = "English",
publisher = "Department of Economics, University of Copenhagen",
address = "Denmark",
type = "WorkingPaper",
institution = "Department of Economics, University of Copenhagen",

}

RIS

TY - UNPB

T1 - Tax Evasion and Swiss Bank Deposits

AU - Johannesen, Niels

PY - 2010

Y1 - 2010

N2 - Bank deposits in jurisdictions with banking secrecy constitute an effective tool to evade taxes on interest income. A recent EU reform reduces the scope for this type of tax evasion by introducing a source tax on interest income earned by EU residents in Switzerland and several other jurisdictions with banking secrecy. In this paper, we estimate the impact of the source tax on Swiss bank deposits held by EU residents while using that non-EU residents were not subject to the tax to apply a natural experiment methodology. We find that the 15% source tax caused Swiss bank deposits of EU residents to drop by more than 40% with most of the response occurring in two quarters immediately before and after the source tax was introduced. The estimates imply an elasticity of Swiss deposits with respect to the net-of-source-tax-rate in the range 2.5-3.

AB - Bank deposits in jurisdictions with banking secrecy constitute an effective tool to evade taxes on interest income. A recent EU reform reduces the scope for this type of tax evasion by introducing a source tax on interest income earned by EU residents in Switzerland and several other jurisdictions with banking secrecy. In this paper, we estimate the impact of the source tax on Swiss bank deposits held by EU residents while using that non-EU residents were not subject to the tax to apply a natural experiment methodology. We find that the 15% source tax caused Swiss bank deposits of EU residents to drop by more than 40% with most of the response occurring in two quarters immediately before and after the source tax was introduced. The estimates imply an elasticity of Swiss deposits with respect to the net-of-source-tax-rate in the range 2.5-3.

KW - Faculty of Social Sciences

KW - capital taxation

KW - savings directive

M3 - Working paper

BT - Tax Evasion and Swiss Bank Deposits

PB - Department of Economics, University of Copenhagen

ER -

ID: 22773783