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Audits as a Vaccine or Just Aspirin?

Author

Listed:
  • Jagrič Timotej

    (University of Maribor, Faculty of Economics and Business, Slovenia)

  • Lešnik Tomaž

    (Financial Administration of the Republic of Slovenia, Ljubljana, Slovenia)

Abstract

This paper examines the impact of audits on voluntary tax compliance in the area of value added tax in Slovenia. The analyses argues that audited taxpayers with additional tax assessments as the result of an audit display a higher level of tax compliance within the year of the audit as within the year before audit, while audited taxpayers with no irregularities on the basis of an audit do not change their behavior significantly within the same period. However, regarding the longterm effect, the results reveal the possibility of worsening tax compliance with respect to audits where an additional tax assessment was imposed and where no irregularities were discovered during an audit.

Suggested Citation

  • Jagrič Timotej & Lešnik Tomaž, 2017. "Audits as a Vaccine or Just Aspirin?," Naše gospodarstvo/Our economy, Sciendo, vol. 63(4), pages 17-28, December.
    • Handle: RePEc:vrs:ngooec:v:63:y:2017:i:4:p:17-28:n:2
    DOI: 10.1515/ngoe-2017-0020
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    audits; value added tax; voluntary tax compliance;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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