Tax compliance has been a key topic in public finance for some decades already, and has been in the agenda of tax administrations for millennia. People evade taxes, totally or partially, pretty much everywhere in the world. For an economist, this is not surprising: evading tax is akin to a gamble, where you have some chances of being caught, and some changes of getting away with more money. Tax evasion is like investing in an asset before knowing whether it is going boom or bust.

It is nice to think of tax evasion as an investment decision. The enforcement system determines what happens in the bad scenario…