We examine the impact on taxpayer compliance of corrupt auditors seeking bribes in the form of a percentage of taxes payable. The first experiment examines a setting where a taxpayer can choose to report higher income in the presence of a corrupt auditor to reduce the bribe on the under-reported...

Using two experiments, this study examines taxpayers' decisions on how much income to report in the presence of tax auditors and post-reporting tax advisers, respectively. In the first experiment, we examine taxpayers' compliance in the presence and absence of corrupt auditors. In the second...