The cooperative approach to corporate tax compliance: An empirical assessment

Tax authorities increasingly rely on a cooperative approach to support corporate tax compliance. This approach, however, lacks empirical substantiation, and it is unclear whether delivers its expected benefits. We identify the underlying principles of this using reports policy recommendations Organization Economic Cooperation Development (OECD) formalize these in working theory. test theory sample large businesses, unique combination survey data audit results from Netherlands. find that taxpayers’ perceived procedural justice transparency taxpayers their dealings with authority are positively associated quality relationship between taxpayer authority. The increased affects income compliance but not value added (VAT) Furthermore, our suggest internal control contributes compliance, latter via prevention unintentional errors. Overall, can help improve way interact, ultimate contribution differ various taxes types non-compliance.