Tax administrations increasingly use audits via mail (correspondence audits) to audit taxpayers. Correspondence audits are cheaper than face-to-face audits but their effects on compliance are unclear. We investigate the effects of correspondence and face-to-face audits on post-audit tax...

A large body of research has estimated the effects on tax collection of informing taxpayers of their obligations. This paper examines the effects on voluntary tax payments of providing taxpayers with information on their obligations that is collected through massive information cross-checking...

We analyze the impact of trust on bargaining behavior between auditor and auditee in a tax setting. We study the effect of interpersonal trust and trust in government on both taxpayer and tax auditor. In an experiment with variation in pairwise trust settings, we find evidence that both kinds of...

All companies, regardless of their size, business model and scope of activities, must understand and comply with a plethora of laws and regulations in diverse areas such as employment, health and safety, intellectual property, real property, tax, antitrust, finance, securities law and consumer...

We examine whether voluntary, cooperative tax audits are associated with incrementally greater corporate tax compliance and positive spillover to financial reporting quality relative to enforced, adversarial tax audits. Extant literature lacks a direct comparison of these options, which both...

Making use of a unique administrative data set that spans the period 2012- 2019 and covers the universe of administrative tax filings in Rwanda, this paper investigates both the direct and (through tax audits) the indirect impact of the introduction of e-invoicing on firms’ reporting behaviour...

I study the long-run effects of tax audits on revenue and explore the heterogeneity in taxpayer compliance responses. This is done using waves of randomised audits of selfemployed by the Danish Tax Agency from 2006 to 2017 and leveraging novel information provided by compliance officers on...

This theoretical paper studies the relation between tax audits and labour market outcomes (job creation and unemployment) in an economy that contemplates penalties for firms that evade taxes and rewards for firms that comply with tax rules. Intuitively, the simultaneous presence of penalty and...

The Earned Income Tax Credit, a federal anti-poverty program administered through the tax system, provides a total of about $65 billion a year in “refundable credits” (a payment in excess of tax liability) to more than 25 million working low-income taxpayers, who receive an average of about...

Tax audits are the main tool adopted by tax administrations to collect taxes. Their optimal number depends on two parameters, i.e. the enforcement elasticity of tax revenue with respect to the audit effort and the sum of private compliance costs and public administrative costs entailed by...

Tax audits are the main tool adopted by tax administrations to collect taxes. Their optimal number depends on two parameters, i.e. the enforcement elasticity of tax revenue with respect to the audit effort and the sum of private compliance costs and public administrative costs entailed by...

The Internal Revenue Service (IRS) is the federal agency charged with tax revenue collection. In fiscal year 2020, the IRS collected $3.5 trillion in taxes, which represented about 96 percent of aggregate annual federal funding (IRS, 2020). In its mission statement the IRS states that its...

This book covers various topics related to economics and the social sciences, such as artificial intelligence, sustainability, ESG, and tax administration. The respective contributions provide insights and perspectives on the current challenges and opportunities in these fields, while also...

The purpose of this study was to determine factors affecting tax audit effectiveness using statistical analysis; both qualitative and quantitative approach (use mixed method). The population of the study includes the entire set of all tax auditors and process owners operated in the East Gojjam...

This study examines the relation between risk-based tax audit strategies and corporate tax avoidance. We exploit OECD data across 54 countries on risk profiling, predictive modeling, and internal intelligence functions in tax administrations from 2014 to 2017 to investigate whether risk-based...

This study examines the relation between risk-based tax audit strategies and corporate tax avoidance. We exploit OECD data across 54 countries on risk profiling, predictive modeling, and internal intelligence functions in tax administrations from 2014 to 2017 to investigate whether risk-based...

In this paper, we investigate the acceptance by taxpayers and tax auditors of voluntary e-audits, i.e., online-based, automated tax audits. Further, we analyze the effects of e-audits on trust in and power of tax authorities. Perceived benefits and shortcomings of e-audits for taxpayers and tax...