Ambiguity, Audit Errors, and Tax Compliance
- Authors
- Yoon, Sung-Soo; Yoo, Seung-Weon; Kim, Jinbae
- Issue Date
- 4월-2011
- Publisher
- CITY UNIV HONG KONG, DEPT ECONOMICS & FINANCE
- Keywords
- tax ambiguity; audit error; tax litigation; and tax compliance
- Citation
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, v.18, no.1, pp.11 - 26
- Indexed
- SSCI
SCOPUS
- Journal Title
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS
- Volume
- 18
- Number
- 1
- Start Page
- 11
- End Page
- 26
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/112758
- DOI
- 10.1080/16081625.2011.9720871
- ISSN
- 1608-1625
- Abstract
- We examine the impact of tax law ambiguity and tax audit errors on tax compliance in a setting where litigation is allowed. A decrease in audit errors discourages aggressive reporting and leads to fewer audits and trials. A reduction in tax ambiguity, however, has indeterminate effects on aggressive reporting and litigation frequencies. A more effective tax audit benefits taxpayers with relatively strong cases but not those with weak ones. A tax cut encourages aggressive reporting and lowers net revenue. An increase in the penalty, however, leads to less aggressive reporting and higher net revenue without making anyone worse off.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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