For most parameter values, increased randomness about how much taxable income an auditor would assess leads to higher reported income and more revenue, When reducing randomness is costly, optimality requires some randomness in assessed taxable Income. Even if reducing randomness g costless,...

The Norwegian Tax Administration operated multi-year random audits of personal income tax returns. We exploit this exceptional randomized setup to estimate the effects of tax audits on future compliance explicitly distinguishing between dynamic responses of compliant and noncompliant audited...

What happens when the tax authority increases enforcement in one tax with compliance in other taxes? The very little evidence available is not conclusive. This paper presents a very simple analytical model that shows the conditions under which spillovers could be positive or negative in the...