Harassment, corruption and tax policy: a comment on Marjit, Mukherjee and Mukherjee [Eur. J. Political Economy 16 (2000) 75–94]

This comment on Marjit, Mukherjee and Mukherjee Eur. J. Political Economy 16 (2000) 75–94] shows that their basic model can be simplified by an alternative formulation. A corrupt auditor gives two choices to a taxpayer: pay bribe and evade tax or be overtaxed. Although harassment can be redressed through court, the taxpayer chooses to pay bribe. However, as this note discovers, the bribe–income ratio will critically depend on whether the taxpayer can afford the court fees. This may lead different income groups to have different preferences for corruption.