You Don't Need an Invoice, Do You? An Online Experiment on Collaborative Tax Evasion

Burgstaller, Lilith; Pfeil, Katharina

doi:10.2139/ssrn.4326569

Cited by 1 publication

(1 citation statement)

References 36 publications

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“…Research on tax evasion has already seen some applications of displaying social norm information or information about reference points to increase tax compliance (Lefebvre et al 2015;Antinyan and Asatryan 2019;Burgstaller and Pfeil 2022;Besley et al 2023). Most studies present peers' average compliance rates (empirical/descriptive norms) as a reference point for taxpayers.…”

Section: Using Insights From Nudges Boosts and Sludge To Improve Tax ...mentioning

confidence: 99%

Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance

Alm,

Burgstaller,

Domi

et al. 2023

Economies

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This paper discusses current developments in tax compliance research, with a focus on three aspects. First, we summarize empirical evidence on the traditional deterrence or enforcement approach, suggesting that tax audits and fines for noncompliance are critical in taxpayers’ compliance decisions. However, recent research indicates that the effects of deterrence are more nuanced than initially thought, suggesting that other interventions are needed to improve tax compliance. Second, therefore, we discuss research on behavioral approaches to increase tax compliance, starting with research that analyzes the effects of “nudges”, or interventions that use behavioral economics to alter the ways in which the choice architecture facing individuals is communicated to them by the tax administration. As applied to tax compliance, we conclude that nudges have had mixed effects on increasing tax compliance, suggesting that the specific design and implementation of these interventions determine their effectiveness. Third, we extend our discussion to other behavioral economics interventions that have not yet been studied widely in tax compliance research. These include “sludge”, or institutional features that complicate compliance, and “boosts”, or initiatives that target individuals’ competencies and thereby help them to make better decisions. Our central argument is that all three of these behavioral interventions should be utilized in the design of tax policies. However, for these methods to effectively complement traditional deterrence approaches, tax administrations should evaluate them before implementing them in the field. Closer cooperation between administrators and academics should thus be facilitated and encouraged.

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Section: Using Insights From Nudges Boosts and Sludge To Improve Tax ...mentioning

confidence: 99%

Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance

Alm,

Burgstaller,

Domi

et al. 2023

Economies

Self Cite

View full text Add to dashboard Cite

show abstract

You Don't Need an Invoice, Do You? An Online Experiment on Collaborative Tax Evasion

Cited by 1 publication

References 36 publications

Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance

Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance

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