Tax Audits Evaluation

07 October 2020

Tax administrations rely on audits as a tool to promoting and enforcing tax compliance. But, how effective are audits in enhancing compliance? Do they deter or enhance tax noncompliance? Do they affect subsequent tax payment behaviour by the audited taxpayers? Does their impact vary depending on the audited tax base (VAT/CIT/PIT)?

Besides this direct specific deterrence effect on audited taxpayers, audits may also have an indirect (general) effect on taxpayers that did not experience an audit. This raises the issue regarding the extent to which audits affect compliance behaviour of those taxpayers who belong to the network of the audited taxpayer.

Recently tax administrations started to rely on different types of tax enforcement examinations including correspondence or desk based audits and issue related audits in addition to the more traditional face-to-face or comprehensive audits, but little is known of their impact.

These are some of the important issues this TARC workshop will address. Speakers will include Brian Erard, Jason DeBacker (University of South Carolina), Arun Advani (University of Warwick) and Christos Genakos (Cambridge University and AUEB) among others.

This TARC online workshop is free and will be held on the Zoom platform. Registration is now open on Eventbrite and the full programme will be available on the TARC website soon.