<![CDATA[Disclosure about tax evasion may trigger the contagion of such behavior. However, exposure to news about discovered misconduct can lead to deterrence as well. The economics-of-crime approach and social norm-based explanation suggest that exposure to news about evasion may influence the receiver of information to imitate such misconduct. In contrast, a Psychology-based explanation argues against contagion in taxpayers' misbehavior. This study aims to investigate the effect of disclosing evasion information by another taxpayer toward tax non-compliance and testing of the effectiveness of audit information dissemination to mitigate the contagion effect of such non-compliance that may be occurred. The research was conducted by an experimental approach with a 2 x 2 between-subjects design. The results show that when information about tax evasion is publicly disclosed, unaudited taxpayers tend to imitate such misbehavior. However, the contagion effect of non-compliance can be mitigated by the official announcement of tax audit information.]]>
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