Seminario CEDE - Juliana Londoño
This paper investigates the feasibility of wealth taxation in developing countries. It usesrich administrative data from Colombia and leverages a government-designed program forvoluntary disclosures of hidden wealth, as well as the threat of detection triggered by thePanama Papers leak. There are two key findings. First, there is substantial (primarily offshore)evasion: two-fifths of the wealthiest 0.01% evade taxes, with these evaders concealing one-third of their wealth offshore.