A government wishes to discourage tax avoidance. Which policy to achieve this would be an example of the behavioural approach of nudge theory?
- A government wishes to discourage tax avoidance. Which policy to achieve this would be an example of the behavioural approach of nudge theory? A compelling direct tax deduction by employers B making random inspections of individual tax records C providing information on how the tax is spent by the government D using penalties, such as fines and imprisonment for tax avoidance[1]
Mark scheme
Marking points from the official mark scheme (May/June 2017). The mark or mark type is shown in brackets.
- [1] C
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