Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/339098 
Year of Publication: 
2025
Series/Report no.: 
WIDER Working Paper No. 110/25
Publisher: 
The United Nations University World Institute for Development Economics Research (UNU-WIDER), Helsinki
Abstract: 
Making use of a rich administrative dataset on Ugandan firms' tax filings covering the period 2013-21, this paper investigates the impact of tax audits on voluntary compliance, contrasting the effect of one vs multiple audits. Using a matched difference-in-differences approach with similar unaudited firms as controls, and a stacked design to address staggered treatment timing, the analysis shows that among firms that consistently file taxes over the study period, audits induce higher value added tax (VAT) liabilities. Crucially, this is entirely driven by firms receiving multiple audits, underlining the importance of repeated interactions with the tax authority for fostering compliance among this set of taxpayers.
Subjects: 
tax audit evaluation
tax administration
tax evasion
tax compliance
JEL: 
H25
H26
H32
Persistent Identifier of the first edition: 
ISBN: 
978-92-9267-669-8
Document Type: 
Working Paper

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