Project description
An effective system for automatic information exchange
Tax avoidance and evasion is a global problem depriving governments and society of substantial revenue essential for funding public spending. Tax transparency is a key policy tool to tackle this. As a result, several tax transparency initiatives have been launched, including a global system for the automatic exchange of information (AEOI). Yet, the effectiveness of such a system is not well understood. The MSCA-funded TAXFAIR project will determine the traits that an AEOI system should have in order to maximise tax revenue extraction. It will combine information from two data sets: one comprising administrative data on Norwegian residents, and one containing institutional information on locally implemented AEOI systems. Overall, TAXFAIR will provide a knowledge-based framework for governments around the world to implement an effective automatic information exchange system.”
Objective
Tax evasion represents a pervasive phenomenon and a substantial portion can be attributable to income held abroad. The general consensus at global level is that cross-border tax evasion can be fought effectively by further increasing information exchange between countries. Anecdotal evidence suggests that introducing a system for the automatic exchange of information (AEOI) is extremely costly. Yet, we lack a direct assessment of the related benefits. TAXFAIR aims to analyze the effectiveness of the AEOI system to mobilize tax revenues and to determine the characteristics of an AEOI system that maximizes tax revenue extraction. Specifically, 1. I will create a high-quality novel dataset based on administrative data on Norwegian residents and a dataset containing institutional information on locally implemented AEOI systems; 2. I will apply state-of-the-art regression models to the administrative dataset to quantify the tax revenue recovered from the introduction of a AEOI system; 3. By combining the institutional information dataset and the administrative dataset, I will empirically analyze the traits that maximize the tax revenues recovered from the local AEOI systems. Overall, TAXFAIR will provide a knowledge based framework for governments and policymakers which will allow them to increase the monetary resources highly needed for financing the recovery from the massive negative economic shock induced by the COVID19 pandemic.
While working on the action, I will develop new methodological skills (especially on machine learning), cross-sectorial skills (through the research stay at the IMF), stronger communication skills (by presenting at international conferences and via video clips), and further teaching and organizational skills (especially by organizing a case study competition joint with the industry). Overall, the MSCA fellowship will undoubtedly jump-start my career allowing me to emerge as an independent researcher with multiple attractive career pathways.
Fields of science
Keywords
Programme(s)
- HORIZON.1.2 - Marie Skłodowska-Curie Actions (MSCA) Main Programme
Funding Scheme
HORIZON-TMA-MSCA-PF-EF - HORIZON TMA MSCA Postdoctoral Fellowships - European FellowshipsCoordinator
N-5045 Bergen
Norway