Using a tax compliance game, we study whether the observability of the taxpayer's financial accounting information and the statutory auditor's report affects the tax compliance. We find that firms' responses differ significantly between private and public firms. Private firms compensate for the...

We examine whether tax audit regimes become more efficient if (i) there are audited financial statements and (ii) tax auditors have access to the internal statutory audit report revealing information about statutory audit adjustments. Our analysis is based on a standard tax compliance game that...

We examine how anti-avoidance rules and a strategic tax auditor affect a firm’s investment and tax-avoidance incentives in a game-theoretic model. Our model investigates a firm that decides on a lump-sum investment and tax avoidance. In contrast to previous studies, our analysis incorporates a...