# 15-128/VII (2015-11-17)

Author(s)
Heiner Schmittdiel, Erasmus University Rotterdam, the Netherlands
Keywords:
Tax compliance, voluntary disclosure, guilt
JEL codes:
H26, K34, K40

In this paper, we develop a model that can explain why governments may want to choose to offer a voluntary disclosure program that allows people who withheld taxes to turn themselves in without punishment. We find that such a leniency rule not only increases government revenue when it comes as a surprise, but even when taxpayers anticipate it.