Estimation and evaluation


Understanding the spread of information in networks

The project is designed to investigate how audits affect the behaviour of taxpayers who are linked in a network. Taxpayer networks are a potentially important means by which information is transmitted and behaviour is coordinated. In this project we aim to exploit HMRC’s random enquiry programmes to investigate how an audit that uncovers evidence of non-compliance affects the behaviour of others in the pre-enquiry network. The results will be important for understanding how networks function and may help guide future HMRC auditing strategies.