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Tax compliance and firms' strategic interdependence

Listed author(s):
  • Bayer, Ralph
  • Cowell, Frank

We 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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File URL: http://www.sciencedirect.com/science/article/pii/S0047-2727(09)00089-9
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Article provided by Elsevier in its journal Journal of Public Economics.

Volume (Year): 93 (2009)
Issue (Month): 11-12 (December)
Pages: 1131-1143

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Handle: RePEc:eee:pubeco:v:93:y:2009:i:11-12:p:1131-1143
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/505578

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