Modelling the Tax Compliance Profiles of New Zealand Firms: Evidence from Audit Records

David Giles

No 9803, Department Discussion Papers from Department of Economics, University of Victoria

Abstract: This paper analyzes a large sample of unit records relating to tax audit cases for individual New Zealand firms, undertaken by Inland Revenue New Zealand over the period 1993 to 1995. The data are used to reveal the key characteristics that are associated with firms that comply, or fail to comply, with their tax liabilities. Multinomial Logit modelling is then used to determine the relative significance of these characteristics, and to estimate the probabilities of compliance, evasion and avoidance that are associated with firms which have different profiles. The paper illustrates the usefulness of this analysis as an input into the process of selecting firms for tax audits.

Keywords: Hidden Economy; Underground Economy; Tax Avoidance; Tax Evasion; Tax Gap (search for similar items in EconPapers)
JEL-codes: C5 H1 H2 (search for similar items in EconPapers)
Pages: 37 pages
Date: 1998-06-17
New Economics Papers: this item is included in nep-eec, nep-pbe and nep-pub
Note: An earlier version of this paper was presented at the Third Workshop on The Health of the Tax System, IRD, Wellington, N.Z., May 1998.
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:vic:vicddp:9803

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