EconPapers    
Economics at your fingertips  
 

May I Calculate Your Taxes?: The Effect of Bookkeeping on Tax Compliance under a Simplified Regime

Rosangela Bando, Otavio Canozzi, José Martinez-Carrasco and Ana Lucia Dezolt (anadezolt@gmail.com)

No 11381, IDB Publications (Working Papers) from Inter-American Development Bank

Abstract: Many countries worldwide face significant miss reporting in tax declarations. Miss reporting leads to undesired low revenue and economic distortions. This paper discusses the extent to which the residual bookkeeping burden faced by small firms in simplified regimes influence tax declarations. A randomized control trial among 1,500 irregular firms in Piaui, Brazil showed that adding the tax amount due and records on transactions to a warning notification improved compliance in 21 percentage points and increased the reported revenue in 39 percent. Firms without an accountant were less likely to regularize their status without the added information. These findings suggest the use of third party information to support voluntary compliance may present an opportunity for digital services to improve tax revenue services.

Keywords: Tax compliance; Taxpayer support; Accounting; Tax Support (search for similar items in EconPapers)
JEL-codes: H26 H30 H32 O38 (search for similar items in EconPapers)
Date: 2021-05
New Economics Papers: this item is included in nep-acc, nep-iue and nep-pbe
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://publications.iadb.org/publications/english ... implified-Regime.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idb:brikps:11381

DOI: 10.18235/0003386

Access Statistics for this paper

More papers in IDB Publications (Working Papers) from Inter-American Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Felipe Herrera Library (bid-library@iadb.org).

 
Page updated 2025-03-19
Handle: RePEc:idb:brikps:11381