Sales Tax Compliance and Audit Selection
نویسنده
چکیده
Literature on tax compliance has experienced explosive growth in the past 20 years. Yet the vast majority of this work has focused on individuals and compliance with the personal income tax, rather than company compliance and compliance with other taxes. This paper explores the subject of sales tax audit selection and firm underreporting of statutory sales tax liabilities. The analysis relies on sample selection estima tion techniques in identifying systema tic audit selection rules and the determinants of sales tax underreporting. The results support the view that sales tax accounts are chosen for audit nonrandomly. The analysis also provides strong evidence that taxpayer opportunities for underreporting are correlated with the observed behavior
منابع مشابه
Audit Selection and Firm Compliance with a Broad–based Sales Tax
Michael McKee Department of Economics, College of Business Administration, University of Tennessee at Knoxville, Knoxville, TN 37996 Abstract This paper examines the process by which firms are selected for a sales tax audit and the determinants of subsequent firm compliance behavior, focusing upon the Gross Receipts Tax in New Mexico. A two–stage selection model is used to estimate the State’s ...
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