In a tax compliance experiment we manipulate various dimensions to isolate the effects of whistleblowing: whether incomes are homogeneous or heterogeneous; whether whistleblowing is permitted or not; and whether subjects have complete or incomplete information about others' tax evasion. Under complete information, we find that whistleblowing has a strong impact on compliance, reducing the proportion of concealed income and increasing the precision of the auditing procedure. Moreover, the probability of being whistled increases with evasion and rich subjects react to whistleblowing more than poor subjects do. Introducing incomplete information reduces the deterrent effect of whistleblowing, but not among the richest taxpayers.

Whistleblowing and tax evasion: Experimental evidence

Bernasconi, M
;
Corazzini, L;Medda, T
2022

Abstract

In a tax compliance experiment we manipulate various dimensions to isolate the effects of whistleblowing: whether incomes are homogeneous or heterogeneous; whether whistleblowing is permitted or not; and whether subjects have complete or incomplete information about others' tax evasion. Under complete information, we find that whistleblowing has a strong impact on compliance, reducing the proportion of concealed income and increasing the precision of the auditing procedure. Moreover, the probability of being whistled increases with evasion and rich subjects react to whistleblowing more than poor subjects do. Introducing incomplete information reduces the deterrent effect of whistleblowing, but not among the richest taxpayers.
File in questo prodotto:
File Dimensione Formato  
Pre_print - Bernasconi-revised-zf-0919_REVISED_MB.pdf

non disponibili

Tipologia: Documento in Pre-print
Licenza: Accesso chiuso-personale
Dimensione 694.26 kB
Formato Adobe PDF
694.26 kB Adobe PDF   Visualizza/Apri

I documenti in ARCA sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/5008040
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? 0
social impact