Our project proposal Revelation of tax evasion by random audits is divided into three parts: a preparation study, a pilot project, and a main project. The preparation study is financed by the Norwegian Research Council. We hereby apply for financial supp ort in order to carry out the pilot project. Our application is conditioned by a positive conclusion of the preparation study.
The ambition of the whole project is to estimate the overall magnitude of tax evasion, understand incentives, and estimate how t ax rules, control strategies, and sanctions affect behaviour. The purpose of the preparation study is to explore, discuss and suggest solutions to various issues of a full scale study, and to develop a design to be implemented. If the preparation study co ncludes that various problems of a full scale project could be solved, a pilot study to test the design on a limited number of audits should be carried out before a full scale project eventually will be decided.