Working Papers in Economics,
University of Gothenburg, Department of Economics

Abstract: To what extent do people avoid taxes on intra-family transfers (bequests and gifts), and how would integration (unification) of the different transfers taxes affect tax avoidance? These issues are important for families and their welfare, as well as for governments and their possibilities of raising revenue from transfer taxes. In this paper we study the effects of transfer taxes on altruistic parents' transfers to their children. Using a theoretical model we find that altruistic parents do not necessarily tax minimize. However, in some cases when they do, there is an infinitely large excess burden of a transfer tax. We also find that integration of transfer taxes reduces tax avoidance. All tax avoidance is eliminated with complete integration.

Keywords: tax avoidance; bequests; inheritances; inter vivos gifts; altruism

JEL-codes: D10; D64; D91

26 pages, March 16, 2005

Full text files

2761 HTML file 

Download statistics

Published as

Katarina Nordblom and Henry Ohlsson, (2006), 'Tax avoidance and intra-family transfers', Journal of Public Economics, vol 90, no 8-9, pages 1669-1680

• University of Gothenburg, Department of Economics
• Ordering Working Papers
• Home page for this series

Questions (including download problems) about the papers in this series should be directed to Jessica Oscarsson ()
Report other problems with accessing this service to Sune Karlsson ().

RePEc:hhs:gunwpe:0164This page generated on 2024-11-14 18:33:26.