Public Choice

, Volume 88, Issue 1–2, pp 161–170 | Cite as

Tax rates, tax administration and income tax evasion in Switzerland

  • Werner W. Pommerehne
  • Hannelore Weck-Hannemann


This paper contains an empirical analysis of income tax noncompliance in Switzerland, based on the standard model of tax evasion. Noncompliance is found to be positively related to the marginal tax burden and negatively to the probability of audit, though the latter impact is only weak. There is no evidence of a significant deterrent effect of the penalty tax. The extended model reveals that noncompliance is positively related to inflation. Finally, noncompliance is significantly lower when citizens/taxpayers have direct control over government budgets, whereas the opposite holds when there is no such control.


Empirical Analysis Public Finance Extended Model Direct Control Deterrent Effect 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Kluwer Academic Publishers 1996

Authors and Affiliations

  • Werner W. Pommerehne
    • 1
  • Hannelore Weck-Hannemann
    • 2
  1. 1.University of SaarlandGermany
  2. 2.University of InnsbruckAustria

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