Behavioral Responses To Taxpayer Audits: Evidence From Random Taxpayer Inquiries
AbstractThis paper argues that random audit programs provide income taxpayers with information that alters their perceptions of, and hence their behavioral responses to, audits. Comparing samples of randomly selected audited and non-audited UK taxpayers, the evidence confirms predictions that audited taxpayers found to be "compliant" reduce their subsequent compliance. The opposite response is observed for taxpayers found to be "noncompliant." The results highlight the importance of testing separately the responses of taxpayers facing different opportunities and incentives to evade tax in order to avoid conflating their different effects, and to reveal both positive and negative indirect revenue effects from random auditing.
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Bibliographic InfoArticle provided by National Tax Association in its journal National Tax Journal.
Volume (Year): 65 (2012)
Issue (Month): 1 (March Citation: 65 National Tax Journal 33-57 (March 2012))
Other versions of this item:
- Ratto, Marisa & Gemmell, Norman, 2012. "Behavioral responses to taxpayer audits: Evidence from random taxpayer inquiries," Economics Papers from University Paris Dauphine 123456789/11056, Paris Dauphine University.
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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