Nudging businesses to pay their taxes

Mathias Sinning () and Katja M. Fels

RWI Impact Notes from RWI - Leibniz-Institut für Wirtschaftsforschung

Abstract: Reminders and a simplified language help tax authorities to collect outstanding tax payments more efficiently. - Tax noncompliance harms both social cohesion and public welfare. In the US alone, tax underpayment averaged $39 billion per year from 2008 to 2010. How can tax authorities collect outstanding payments more efficiently? Novel research by RWI in cooperation with the Australian National University provides new insights: based on three natural field experiments, the researchers show that a simplified language and reminders increase tax compliance by corporate taxpayers. Early reminders are especially attractive from a tax collector's perspective.

Date: 2019
New Economics Papers: this item is included in nep-cbe, nep-exp, nep-iue and nep-pbe
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwiimp:192970

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