Do tax audits have a dynamic impact? : evidence from corporate income tax administrative data
Kotsogiannis, Christos (University of Exeter)
Salvadori, Luca (Universitat Autònoma de Barcelona)
Karangwa, John (Rwanda Revenue Authority)
Mukamana, Theonille (The African Institute for Mathematical Sciences Research and Innovation Centre)

Imprint:	Elsevier, 2024
Abstract:	Making use of a unique administrative data set consisting of the universe of administrative filings in Rwanda, this paper investigates the impact of tax audits on businesses' reporting behaviour. The evidence suggests that tax audits have a positive impact on corporate income and corporate tax liabilities reported for three years after the start of the audit process. The results also suggest that the type of audit matters. While 'comprehensive' tax audits have a significant positive effect on compliance, 'narrow-scope' tax audits exhibit both a positive and a negative effect during a three-year period after the audit, with the net impact being negative. The implication of this, from a tax compliance perspective, is that 'narrow-scope' audits are ineffective and that doing more of those and less of comprehensive ones might have a negative impact on tax compliance. Effective tax compliance strategy therefore requires the careful evaluation of all types of audits.
Grants:	Agencia Estatal de Investigación CEX2019-000915-S Agencia Estatal de Investigación PID2022-137707NB-I00 Agència de Gestió d'Ajuts Universitaris i de Recerca 2021/SGR-00571
Note:	Altres ajuts: acords transformatius de la UAB
Rights:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original.
Language:	Anglès
Document:	Article ; recerca ; Versió publicada
Subject:	Tax Audit Evaluation ; Tax Administration ; Tax Evasion ; Tax Compliance ; SDG 16 - Peace, Justice and Strong Institutions ; SDG 1 - No Poverty ; SDG 2 - Zero Hunger ; SDG 3 - Good Health and Well-being ; SDG 9 - Industry, Innovation, and Infrastructure
Published in:	Journal of development economics, vol.170 (2024), ISSN 1872-6089

DOI: 10.1016/j.jdeveco.2024.103292

51 p, 9.2 MB

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