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One and done or repeat inspections? The differential effect on multiple tax audits

Author

Listed:
  • David Henning
  • Christos Kotsogiannis
  • Jukka Pirttilä
  • Luca Salvadori

Abstract

Making use of a rich administrative dataset on Ugandan firms' tax filings covering the period 2013-21, this paper investigates the impact of tax audits on voluntary compliance, contrasting the effect of one vs multiple audits. Using a matched difference-in-differences approach with similar unaudited firms as controls, and a stacked design to address staggered treatment timing, the analysis shows that among firms that consistently file taxes over the study period, audits induce higher value added tax (VAT) liabilities.

Suggested Citation

  • David Henning & Christos Kotsogiannis & Jukka Pirttilä & Luca Salvadori, 2025. "One and done or repeat inspections? The differential effect on multiple tax audits," WIDER Working Paper Series wp-2025-110, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2025-110
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2025-110-one-done-repeat-inspections-differential-effect-multiple-tax-audits.pdf
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    References listed on IDEAS

    as
    1. Jarkko Harju & Kaisa Kotakorpi & Tuomas Matikka & Annika Nivala, 2024. "How Do Firms Respond to Risk-based Tax Audits?," Working Papers 22, Finnish Centre of Excellence in Tax Systems Research.
    2. King, Gary & Nielsen, Richard, 2019. "Why Propensity Scores Should Not Be Used for Matching," Political Analysis, Cambridge University Press, vol. 27(4), pages 435-454, October.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. José María Durán-Cabré & Alejandro Esteller-Moré & Christos Kotsogiannis & Luca Salvadori, 2025. "Wealth tax enforcement:The role of tax and institutional design," Working Papers 2025/15, Institut d'Economia de Barcelona (IEB).

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