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Tax Evasion and the Remuneration of Tax Auditors in a Corrupt Tax Administration

Authors: Diego Escobari;

Tax Evasion and the Remuneration of Tax Auditors in a Corrupt Tax Administration

Abstract

This paper examines how different remuneration alternatives for the tax auditors in a corrupt tax administration can provide them incentives to work harder towards discovering evasion. The model is built on the interaction between a potential tax evader and a tax auditor that can either be corrupt or honest. In the Bayesian Nash Equilibrium of the model it is found that corruption provides tax officials incentives to work harder in finding evasion. When trying to increase compliance levels, it is more effective to give the tax auditors a share of the evasion fine rather that increasing their lump-sum income.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
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