The Indirect Effects of Auditing Taxpayers

Marisa Ratto, Richard Thomas and David Ulph

Public Finance Review, 2013, vol. 41, issue 3, 317-333

Abstract: Empirical studies suggest that the effects of tax audits are not only in terms of recovered unpaid tax (direct effect) but there are also indirect effects in terms of future better compliance that tend to outweigh the direct effect. However, current policy decisions on the allocation of investigation resources across different groups of taxpayers generally neglect the indirect effects, generating a potential resource misallocation issue. With the aim to clarify a possible mechanism through which the indirect effects work, the authors model tax compliance as a social norm and show that taxpayers’ interdependencies introduce a multiplier effect to an increase in the audit rate.

Keywords: tax evasion; social norm; indirect effects; tax audits (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/1091142112448414 (text/html)

Related works:
Working Paper: The indirect effects of auditing taxpayers (2013)
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:sae:pubfin:v:41:y:2013:i:3:p:317-333

DOI: 10.1177/1091142112448414

Access Statistics for this article

More articles in Public Finance Review
Bibliographic data for series maintained by SAGE Publications ().