Audits and tax offenders: Recent evidence from Greece

► This paper using a novel dataset studies the effect of audits on tax offenders. ► A 1% increase in the number of audits lowers the offenders ratio by about 4-9 p.p. ► A 1% increase in the number of audits reduces the tax offenders by 0.3%-0.4%. ► Audits increase tax compliance in tourist destinations. ► Improved economic sentiment induces tax compliance.