In a situation in which people who are required to fill in a tax-return coexist with tax-return-exempt people, we prove that the optimal audit policy leads to different tax compliance behavior, depending on the difficulty of detecting an evader who does not fill in a tax return, passing himself of as a non-taxpayer. Copyright ©1996 Eisevier Science B.V. All rights reserved.
|Journal||Review of Economic Design|
|Publication status||Published - 1 Dec 1996|
- Audit policy
- Tax-return-exempt individuals