Optimism, Pessimism, Audit Uncertainty, and Tax Compliance

摘要

As the tax authority releases or withholds relevant information, it decrease or increases the extent of uncertaintyrnabout the audit probability taxpayers perceive, affecting their reporting behavior and expected tax revenues.rnThe effects of an increase in enforcement uncertainty on the expected tax revenues depend on taxpayer pessimismrnor optimism and on additional information about the audit probability taxpayers receive. The expectedrntax revenues tend to increase in response to an increase in audit uncertainty, and the tax authority would havernlittle incentive to release more information to the extent that it cares about tax revenues.