Please use this identifier to cite or link to this item:
https://hdl.handle.net/2440/35181
Citations | ||
Scopus | Web of Science® | Altmetric |
---|---|---|
?
|
?
|
Type: | Journal article |
Title: | Finding out who the crooks are - tax evasion with sequential auditing |
Author: | Bayer, R. |
Citation: | Singapore Economic Review, 2006; 51(2):195-228 |
Publisher: | World Scientific Publishing Co. Pte.Ltd. |
Issue Date: | 2006 |
ISSN: | 0217-5908 1793-6837 |
Statement of Responsibility: | Ralph-C. Bayer |
Abstract: | This paper investigates multi-item moral hazard with auditing contests.s Although the presented model is widely applicable, we choose tax evasion as an exemplary application. We introduce a tax-evasion model where tax authority and taxpayer invest in detection and concealment. The taxpayers have multiple potential income sources and are heterogeneous with respect to their evasion scruples. The tax authority — unable to commit to an audit strategy — observes a tax declaration and chooses its auditing efforts. We show that the tax authority prefers to audit source by source until it finds evidence for evasion to conduct a full-scale audit thereafter. Furthermore, we provide an explanation for why economic actors engage in both the formal and informal sector at the same time. |
Keywords: | Moral hazard auditing rules contest tax evasion |
Rights: | © World Scientific Publishing Company |
DOI: | 10.1142/S0217590806002305 |
Published version: | http://dx.doi.org/10.1142/s0217590806002305 |
Appears in Collections: | Aurora harvest Economics publications |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.