Tax Compliance among Managers: Evidence from Randomized Audits

Lange Thomas () and Melsom Anne May
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Lange Thomas: The Norwegian School of Economics, Norway
Melsom Anne May: University of Oslo, Oslo, Norway

Nordic Tax Journal, 2024, vol. 2024, issue 1, 1-29

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.

Keywords: Taxation; Tax Evasion; Accounting; Audit; Labor (search for similar items in EconPapers)
JEL-codes: H2 H26 M41 M48 M54 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:notajo:v:2024:y:2024:i:1:p:1-29:n:1004

DOI: 10.2478/ntaxj-2024-0002

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