McKee, Michael and Siladke, Caleb and Vossler, Christian A. (2011): Behavioral dynamics of tax compliance under an information services initiative.
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Tax authorities utilize the audit process, imposing penalties on tax evaders, as their primary means of enforcement. In recent years, a “service” paradigm, whereby tax authorities provide information about correct tax reporting to taxpayers, has shown the potential to further “encourage” correct tax reporting. This research utilizes laboratory experiments to investigate the behavioral dynamics pertaining to information acquisition and tax evasion. The results show that the overall effect of a helpful information service is to decrease tax evasion. Further, an audit has the behavioral effect of lowering information acquisition rates and increasing evasion immediately after experiencing a penalty. This effect persists (although diminishes) in subsequent tax reporting decisions.
|Item Type:||MPRA Paper|
|Original Title:||Behavioral dynamics of tax compliance under an information services initiative|
|Keywords:||Tax evasion; Tax compliance; Behavioral Dynamics; Behavioral economics; Experimental economics|
|Subjects:||C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H26 - Tax Evasion and Avoidance
|Depositing User:||Christian Vossler|
|Date Deposited:||18. May 2012 15:05|
|Last Modified:||13. Feb 2013 03:07|
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