Optimism, Pessimism, Audit Uncertainty, and Tax Compliance

Lee Kangoh ()
Additional contact information
Lee Kangoh: San Diego State University, Department of Economics, 5500 Campanile Drive, San Diego, CA 92182-4485, USA

The B.E. Journal of Theoretical Economics, 2018, vol. 18, issue 1, 12

Abstract: As the tax authority releases or withholds relevant information, it decrease or increases the extent of uncertainty about the audit probability taxpayers perceive, affecting their reporting behavior and expected tax revenues. The effects of an increase in enforcement uncertainty on the expected tax revenues depend on taxpayer pessimism or optimism and on additional information about the audit probability taxpayers receive. The expected tax revenues tend to increase in response to an increase in audit uncertainty, and the tax authority would have little incentive to release more information to the extent that it cares about tax revenues.

Keywords: optimism; pessimism; enforcement uncertainty; tax compliance (search for similar items in EconPapers)
JEL-codes: D83 H26 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/bejte-2015-0127 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejtec:v:18:y:2018:i:1:p:12:n:2

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/bejte/html

DOI: 10.1515/bejte-2015-0127

Access Statistics for this article

The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper

More articles in The B.E. Journal of Theoretical Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().