Draw a scatter plot with the share of the economy, Taxation

Assignment Help:

1.  The NGO called Transparency International (TI) publishes a "Corruption Perceptions Index" (CPI) that ranks countries on a scale of 0 to 10 based on how corrupt their public sector is perceived to be. A score of 0 means highly corrupt, while 10 means very clean. Go to the TI website and find the CPI score of Canada, the U.S., Germany, France, Sweden, Russia, Kazakhstan, Spain, Italy, Greece, Switzerland, Afghanistan, Nigeria, Botswana, South Africa, and any five other countries of your choice (which should give you 20 countries in all). Next, go to the paper by Schneider (2006) that I have posted on Blackboard and refer to table 6.5 which gives the size of the "shadow economy" as a proportion of GDP for year 2002/03 (last column) for more than 100 countries. The shadow economy is that portion of the economy that is unofficial and hence escapes taxation. Use the table to record the size of the shadow economy as a proportion of GDP for each of the 20 countries selected above. Now:
 
a.  Use a spreadsheet program or graph paper to generate a scatter plot with the share of the shadow economy on the vertical axis and the corruption index on the horizontal axis.

b.  Based on your scatter plot, discuss whether or not your (admittedly small sample of countries used in this exercise) supports the view that a high level of public sector corruption will contribute to tax evasion via a large shadow economy. 

c.  Explain how the perception of public sector corruption relates to the "psychological tax contract" concept in the reading by Lars Feld and Bruno Frey.


Related Discussions:- Draw a scatter plot with the share of the economy

How does the united states tax, Erica is a citizen of a foreign country, an...

Erica is a citizen of a foreign country, and is employed by a foreign-based computer manufacturer. Erica's job is to provide technical assistance to customers who purchase the comp

Difficult problem, Ben Grimm is a 40% partner in We Four, LLC a super-heroi...

Ben Grimm is a 40% partner in We Four, LLC a super-heroing organization. (He does most of the heavy lifting. Reed has 40%, he is the brains. Sue has 10%--they never see her doin

Tax, Home Cable TV Company, an accrual basis taxpayer, allows its customers...

Home Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the month ($25 each month), by the year ($280 per year), or two years in advance ($540). In Decemb

Deferred tax assets, Prepare answers to each of the following questions.  A...

Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju

Deferred tax liability, Lehman Corporation purchased a machine on January 2...

Lehman Corporation purchased a machine on January 2, 2011, for $2,000,000. The machine has an estimated 5-year life with no salvage value. The straight-line method of depreciation

Tax umbrella, The use by a corporation of the losses it continued in earlie...

The use by a corporation of the losses it continued in earlier years to compensate taxes on the profits it attains in future years. Individuals can also utilize a tax umbrella so t

Tax law and practice, presumptive tax is one way of enforcing compliance wi...

presumptive tax is one way of enforcing compliance with the tax requirements.you are required to define presumptive tax and give examples of situations where presumptive tax is app

Calculate any tax payable, The will of B Dark, who died on 31 March of the ...

The will of B Dark, who died on 31 March of the previous income year, provides that after payments of debts and legacies the residue of the estate is to be held in trust and the in

types of taxes, An organization in Australia needs to comply with the stat...

An organization in Australia needs to comply with the statutory requirements of taxation. There are different types of taxes among which a few are common for all the industries and

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd