Cooperative Compliance or Compliant Cooperation? How cooperative approaches to tax auditing are related to firms’ tax risk management, tax risk, and compliance costs

Cooperative compliance (CC) programs are tax audit regimes that replace conventional, ex-post tax audits, with real-time cooperation between firms and tax authorities. According to the OECD, CC is based on mutual trust, transparency, and cooperation and should provide benefits for both sides. First, tax authorities benefit from increased compliance. Because CC-firms are at low risk […]