 Collusive vs. coercively corrupt tax auditors and their impact on tax complianceAmin Mawani and Viswanath Umashanker Trivedi Journal of Behavioral and Experimental Finance, 2021, vol. 30, issue C Abstract: This study examines taxpayer compliance in the presence and absence of collusively corrupt tax auditors and compares it to taxpayer compliance in the presence and absence of coercively corrupt tax auditors. Our experimental results show that overall taxpayer compliance declines in the presence of a collusively corrupt tax auditor who accepts bribes that leave the taxpayer economically better off. In contrast, taxpayer compliance increases in the presence of coercive tax auditors who demand moderate bribes. This may reflect taxpayers’ attempt to create a moral distance between themselves and the corrupt auditor. However, such economic sacrifices disappear when the level of bribe demanded by coercive auditors is increased to a higher component of reported income, suggesting that taxpayers may be willing to bear only relatively modest costs to morally differentiate themselves from coercive tax auditors. Keywords: Collusive corrupt; Coercive corruption; Tax auditors; Tax compliance (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:30:y:2021:i:c:s2214635021000149 DOI: 10.1016/j.jbef.2021.100470 Access Statistics for this article Journal of Behavioral and Experimental Finance is currently edited by Michael Dowling and Jürgen Huber More articles in Journal of Behavioral and Experimental Finance from Elsevier |
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