Tax compliance and firms' strategic interdependence

Bayer, R and Cowell, Frank ORCID: 0000-0002-3778-2152 (2006) Tax compliance and firms' strategic interdependence. . Suntory and Toyota International Centres for Economics and Related Disciplines, London, UK.

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Abstract

We focus on a relatively neglected area of the tax-compliance literature in economics, the behaviour of firms. We examine the impact of alternative audit rules on receipts from a tax on profits in the context of strategic inter- dependence of firms. In the market firms may compete in terms of either output or price. The enforcement policy can have an effect on firms behaviour in two dimensions - their market decisions as well as their compliance behaviour. An appropriate design of the enforcement policy can thus have a "double dividend" by manipulating firm in both dimensions.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://sticerd.lse.ac.uk/
Additional Information:	© 2006 Ralph Bayer and Frank Cowell
Divisions:	Economics STICERD Centre for Analysis of Social Exclusion
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
JEL classification:	H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H21 - Efficiency; Optimal Taxation H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H20 - General
Date Deposited:	21 Aug 2007
Last Modified:	01 Oct 2024 04:03
URI:	http://eprints.lse.ac.uk/id/eprint/2680

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