Withholding self‐employed and business incomes: An application to Italian firms
Why this work is in the frame
A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.
Bibliographic record
Abstract
Abstract The paper proposes the application of a generalised withholding tax scheme to business‐to‐business transactions, in order to combat the evasion of income‐related taxes levied on self‐employed workers and businesses, as an alternative to the standard regime based on self‐reporting. The scheme proposed here is comprehensive in scope, since it applies to all B2B transactions involving the self‐employed and businesses, and can be regarded as an extension of the withholding tax regimes which are currently applied to specific sectors and/or business categories and self‐employed taxpayers in some countries. We argue, even on the basis of a simple conceptual framework, that the benefit of extending such a withholding mechanism to profit taxes is twofold. On the one hand, consisting of an advance payment on the effective profit tax liability, it contributes to curbing tax evasion due to non‐payment in a system characterised by a standard self‐reporting mechanism. On the other hand, and more importantly, the withholding system—retaining information about each transaction subjected to it—enhances third‐party information reporting if the withholding tax is applied to transactions that are otherwise excluded. This paper offers details on operational aspects of the proposed withholding tax mechanism. In particular, a critical issue in implementing the withholding regime lies in the choice of the tax rate, and more specifically in setting a level that is effective in reducing tax evasion without generating excessive tax refunds. This issue is discussed by applying the withholding mechanism to balance sheet microdata of all non‐financial Italian companies.
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Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.000 | 0.000 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.000 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it