Tax compliance and firms' strategic interdependence
AbstractWe focus on a relatively neglected area of the tax-compliance literature in economics, the behaviour of firms. We examine the impact of alternative audit rules on receipts from a tax on profits in the context of strategic interdependence of firms. The enforcement policy can have an effect on firms' behaviour in two dimensions -- their market decisions as well as their compliance behaviour. An appropriate design of the enforcement policy can thus have a "double dividend" by manipulating firms in both dimensions.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 93 (2009)
Issue (Month): 11-12 (December)
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Web page: http://www.elsevier.com/locate/inca/505578
Tax compliance Evasion Oligopoly;
Other versions of this item:
- R Bayer & Frank Cowell, 2006. "Tax compliance and firms' strategic interdependence," LSE Research Online Documents on Economics 2680, London School of Economics and Political Science, LSE Library.
- Ralph-C Bayer & Frank Cowell, 2006. "Tax Compliance and Firms' Strategic Interdependence," School of Economics Working Papers 2006-09, University of Adelaide, School of Economics.
- Ralph Bayer & Frank A Cowell, 2006. "Tax Compliance and Firms’ StrategicInterdependence," STICERD - Distributional Analysis Research Programme Papers 81, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
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