incorporate a model of tax evasion by firms into a standard tax competition framework where regional governments use their audit … rates as a strategic instrument to engage in fiscal competition. We compare the region's choice of audit policies for three … also the regions auditing costs are shared. Without regional transfers, fiscal competition leads to audit rates which are …

, participants increased their levels of evasion in the tax periods immediately following the audit. This effect, however, did not … in the periods immediately following the audit. Overall, average compliance in the nonrandom audit condition … systematically and significantly dominated average compliance in the random audit condition. By revealing, under experimental …

exogenous fine. We assume that the taxpayer can engage in avoidance activities that undermine the tax authority's audit efforts …

This study examines the relation between risk-based tax audit strategies and corporate tax avoidance. We exploit OECD … tax enforcement, firm-specific, and country-specific factors. Cross-sectional tests indicate that risk-based tax audit … that countries with a risk-based audit strategy have lower costs of tax enforcement and improve the performance of tax …