Taking the High Road? Compliance with Commuter Tax Allowances and the Role of Evasion Spillovers

Joerg Paetzold () and Hannes Winner

No 2014-11, NRN working papers from The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria

Abstract: We provide first field evidence on evasion spillovers as an important determinant of the individual compliance decision. Exploiting discontinuities in a self-reported commuter tax allowance, we observe a substantial share of taxpayers misreporting their claims. Using exogenous variation in job changes we find that individual evasion decisions are in uenced by the compliance behavior of other co-workers, with job changers from low- to high-cheating companies starting to evade much more after they move. In contrast, movers from high- to low-cheating companies do not alter their reporting. The most likely explanation is information transmission, including increased knowledge about the possibilities for non-compliance.

Keywords: Tax Evasion; Self-Reporting; Spillover Effects; Information Frictions (search for similar items in EconPapers)
JEL-codes: D83 H24 H26 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-09
New Economics Papers: this item is included in nep-iue, nep-pbe and nep-tre
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Taking the high road? Compliance with commuter tax allowances and the role of evasion spillovers (2016)
Working Paper: Taking the High Road? Compliance with Commuter Tax Allowances and the Role of Evasion Spillovers (2016)
Working Paper: Taking the High Road? Compliance with Commuter Tax Allowances and the Role of Evasion Spillovers (2016)
Working Paper: Taking the High Road? Compliance with commuter tax allowances and the role of evasion spillovers (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:jku:nrnwps:2014_11

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