Whistleblowing, Incentives, and Design Considerations for a Tax Whistleblowing Programme in South Africa

Abstract

The significance of whistleblowing extends beyond its role in promoting public sector accountability; whistleblowers also play a crucial role in safeguarding tax compliance. Evidence suggests that a tax whistleblowing program with a financial incentive leads to less aggressive tax filing and improves the quantity and/or quality of information compared to a program without an incentive. This article explores arguments for and against whistleblowers, as well as incentivising disclosure. Additionally, it discusses design considerations for a tax whistleblowing, aiming to initiate a discussion on the ideal structure for such an incentive programme in South Africa.