Behavioral Insights and Business Taxation: Evidence from Two Randomized Controlled Trials
Nicholas Biddle (),
Katja Fels () and
Additional contact information
Nicholas Biddle: Australian National University
Katja Fels: Ruhr University Bochum
No 10795, IZA Discussion Papers from Institute of Labor Economics (IZA)
This paper presents the findings of two Randomized Controlled Trials (RCTs) that were conducted in collaboration with the Australian Taxation Office (ATO). The first trial tests the effect of changes to letters (timing, social norms, color, and provision of information about charitable donations) on response rates of businesses, the timing of payments and the amount of tax debt payments. The second trial consists of two parts. The first part aims to raise awareness of the relevance of tax debt payment by changing internal guidelines used by field auditors. The second part focuses on studying the effect of changing the phone script used by desk auditors to offer assistance with payment arrangements and simplifying a follow-up letter. The findings of the first trial indicate that none of the treatments had a significant effect on any of the outcome measures considered. In contrast, the results of the second trial indicate that changing the phone script of desk auditors and simplifying the follow-up letter reduced the proportion of default assessments raised by the ATO significantly, suggesting that businesses are responsive to certain types of nudges.
Keywords: behavioral insights; business taxation; tax compliance; nudging (search for similar items in EconPapers)
JEL-codes: C93 H25 H26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-exp, nep-iue and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Published in: Journal of Behavioral and Experimental Finance, 2018, 18, 30-49
Downloads: (external link)
Working Paper: Behavioral insights and business taxation: Evidence from two randomized controlled trials (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp10795
Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Access Statistics for this paper
More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().