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Tax Compliance among Managers: Evidence from Randomized Audits

Author

Listed:
  • Lange Thomas

    (The Norwegian School of Economics, Norway)

  • Melsom Anne May

    (University of Oslo, Oslo, Norway)

Abstract

Earlier studies of individuals’ law-abiding behavior find significant effects of home country corruption level on compliance. In our study of manager’s tax compliance, we use data from random audits and find associations between tax compliance and the use of an external accountant, age, manager’s place of origin and employees’ conflict exposure, but no effect from a manager’s own conflict exposure, nor Corruption Perception Index scores. The use of an external accountant seems to commit managers to comply with reporting requirements. Our findings suggest that factors such as managers’ age and company characteristics are important in understanding manager compliance. To study whether other mechanisms not previously tested may provide explanatory power, we specify two machinelearning models, which confirm our findings, but also suggest other associations.

Suggested Citation

  • Lange Thomas & Melsom Anne May, 2024. "Tax Compliance among Managers: Evidence from Randomized Audits," Nordic Tax Journal, Sciendo, vol. 2024(1), pages 1-29.
  • Handle: RePEc:vrs:notajo:v:2024:y:2024:i:1:p:1-29:n:1004
    DOI: 10.2478/ntaxj-2024-0002
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    Keywords

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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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