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.
# 15-128/VII (2015-11-17)
- Heiner Schmittdiel, Erasmus University Rotterdam, the Netherlands
- Tax compliance, voluntary disclosure, guilt
- JEL codes:
- H26, K34, K40