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Audit publicity and tax compliance: a quasi-natural experiment

Author

Listed:
  • Pietro Battiston
  • Denvil Duncan
  • Simona Gamba
  • Alessandro Santoro

Abstract

We use confidential data on Value Added Tax payments at the sector level, in two large Italian cities, to estimate the effect of audits publicity on tax compliance of local sellers. By employing a Difference-in-Differences identification strategy, we find that such publicity has a positive effect on fiscal declarations made shortly after. The results suggest that increasing awareness on future audits via the media can be an important instrument in the hands of tax authorities.

Suggested Citation

  • Pietro Battiston & Denvil Duncan & Simona Gamba & Alessandro Santoro, 2016. "Audit publicity and tax compliance: a quasi-natural experiment," LEM Papers Series 2016/40, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    • Handle: RePEc:ssa:lemwps:2016/40
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    Cited by:

    1. Asatryan, Zareh & Havlik, Annika & Heinemann, Friedrich & Nover, Justus, 2020. "Biases in fiscal multiplier estimates," European Journal of Political Economy, Elsevier, vol. 63(C).

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    Keywords

    Tax evasion; Quasi-natural experiment; Audit publicity;
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