Tax Compliance in the Rental Housing Market: Evidence from a Field Experiment

Essi Eerola, Tuomas Kosonen, Kaisa Kotakorpi, Teemu Lyytikäinen and Jarno Tuimala

No 122, Working Papers from VATT Institute for Economic Research

Abstract: We study rental income tax compliance using a large-scale randomized fild experiment and register data with third-party information on the ownership of apartments. We analyze the responses of potential landlords to treatment letters notifying them of stricter tax enforcement, or providing simplifying information on filing practices for the rental income tax. We find that both types of letters caused an increase in the propensity to report rental income, with letters notifying landlords of the use of third-party information in tax enforcement having the strongest effect. Our research design also allows us to analyze different types of spillover effects in tax enforcement. We find an indication of positive reporting spillovers within the household, but do not find clear evidence of spillovers between landlords in local rental markets.

Keywords: tax compliance; field experiment; rental market; Social security; taxation and inequality; H26; H31; Asuntopolitiikka; Verotus (search for similar items in EconPapers)
Date: 2019
New Economics Papers: this item is included in nep-eur, nep-exp, nep-iue and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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https://www.doria.fi/handle/10024/171342

Related works:
Working Paper: Tax Compliance in the Rental Housing Market: Evidence from a Field Experiment (2023)
Working Paper: Tax Compliance in the RentalHousing Market: Evidence from aField Experiment (2019)
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