Targeting in Tax Compliance Interventions
Tax authorities often use low-cost communication with taxpayers to encourage voluntary compliance and avoid other costly interventions. This paper reports findings from an experiment with more than 30,000 taxpayers in Honduras, designed to assess how taxpayers with different risk scores respond to a communication intervention. Across several outcomes, the average effect of the intervention on compliance was 0. Contrary to the expectation of experts surveyed, only taxpayers considered to be at low risk of noncompliance increase their filing and reported income. Using rich administrative data and a causal forest algorithm, the paper finds that ex-ante predicted risk and responsiveness to the intervention are negatively correlated. These findings can inform the design of targeted interventions by tax authorities.
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| Format: | Working Paper biblioteca |
| Language: | English |
| Published: |
Washington, DC: World Bank
2022-03-14
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| Subjects: | TAX AUTHORITY, DEVELOPMENT IMPACT EVALUATION, INCOME TAX DECLARATION, INTERNATIONAL GOOD PRACTICE, INCOME TAX FILING, INCOME TAX LIABILITY, |
| Online Access: | http://documents.worldbank.org/curated/en/653411647279081382/Targeting-in-Tax-Compliance-Interventions-Experimental-Evidence-from-Honduras https://hdl.handle.net/10986/37155 |
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dig-okr-10986371552024-09-17T14:15:59Z Targeting in Tax Compliance Interventions Experimental Evidence from Honduras Del Carmen, Giselle Espinal Hernandez, Edgardo Enrique De Gouvea Scot De Arruda, Thiago TAX AUTHORITY DEVELOPMENT IMPACT EVALUATION INCOME TAX DECLARATION INTERNATIONAL GOOD PRACTICE INCOME TAX FILING INCOME TAX LIABILITY Tax authorities often use low-cost communication with taxpayers to encourage voluntary compliance and avoid other costly interventions. This paper reports findings from an experiment with more than 30,000 taxpayers in Honduras, designed to assess how taxpayers with different risk scores respond to a communication intervention. Across several outcomes, the average effect of the intervention on compliance was 0. Contrary to the expectation of experts surveyed, only taxpayers considered to be at low risk of noncompliance increase their filing and reported income. Using rich administrative data and a causal forest algorithm, the paper finds that ex-ante predicted risk and responsiveness to the intervention are negatively correlated. These findings can inform the design of targeted interventions by tax authorities. 2022-03-17T17:41:43Z 2022-03-17T17:41:43Z 2022-03-14 Working Paper Document de travail Documento de trabajo http://documents.worldbank.org/curated/en/653411647279081382/Targeting-in-Tax-Compliance-Interventions-Experimental-Evidence-from-Honduras https://hdl.handle.net/10986/37155 English Policy Research Working Paper; 9967 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank application/pdf text/plain Washington, DC: World Bank |
| institution |
Banco Mundial |
| collection |
DSpace |
| country |
Estados Unidos |
| countrycode |
US |
| component |
Bibliográfico |
| access |
En linea |
| databasecode |
dig-okr |
| tag |
biblioteca |
| region |
America del Norte |
| libraryname |
Biblioteca del Banco Mundial |
| language |
English |
| topic |
TAX AUTHORITY DEVELOPMENT IMPACT EVALUATION INCOME TAX DECLARATION INTERNATIONAL GOOD PRACTICE INCOME TAX FILING INCOME TAX LIABILITY TAX AUTHORITY DEVELOPMENT IMPACT EVALUATION INCOME TAX DECLARATION INTERNATIONAL GOOD PRACTICE INCOME TAX FILING INCOME TAX LIABILITY |
| spellingShingle |
TAX AUTHORITY DEVELOPMENT IMPACT EVALUATION INCOME TAX DECLARATION INTERNATIONAL GOOD PRACTICE INCOME TAX FILING INCOME TAX LIABILITY TAX AUTHORITY DEVELOPMENT IMPACT EVALUATION INCOME TAX DECLARATION INTERNATIONAL GOOD PRACTICE INCOME TAX FILING INCOME TAX LIABILITY Del Carmen, Giselle Espinal Hernandez, Edgardo Enrique De Gouvea Scot De Arruda, Thiago Targeting in Tax Compliance Interventions |
| description |
Tax authorities often use low-cost
communication with taxpayers to encourage voluntary
compliance and avoid other costly interventions. This paper
reports findings from an experiment with more than 30,000
taxpayers in Honduras, designed to assess how taxpayers with
different risk scores respond to a communication
intervention. Across several outcomes, the average effect of
the intervention on compliance was 0. Contrary to the
expectation of experts surveyed, only taxpayers considered
to be at low risk of noncompliance increase their filing and
reported income. Using rich administrative data and a causal
forest algorithm, the paper finds that ex-ante predicted
risk and responsiveness to the intervention are negatively
correlated. These findings can inform the design of targeted
interventions by tax authorities. |
| format |
Working Paper |
| topic_facet |
TAX AUTHORITY DEVELOPMENT IMPACT EVALUATION INCOME TAX DECLARATION INTERNATIONAL GOOD PRACTICE INCOME TAX FILING INCOME TAX LIABILITY |
| author |
Del Carmen, Giselle Espinal Hernandez, Edgardo Enrique De Gouvea Scot De Arruda, Thiago |
| author_facet |
Del Carmen, Giselle Espinal Hernandez, Edgardo Enrique De Gouvea Scot De Arruda, Thiago |
| author_sort |
Del Carmen, Giselle |
| title |
Targeting in Tax Compliance Interventions |
| title_short |
Targeting in Tax Compliance Interventions |
| title_full |
Targeting in Tax Compliance Interventions |
| title_fullStr |
Targeting in Tax Compliance Interventions |
| title_full_unstemmed |
Targeting in Tax Compliance Interventions |
| title_sort |
targeting in tax compliance interventions |
| publisher |
Washington, DC: World Bank |
| publishDate |
2022-03-14 |
| url |
http://documents.worldbank.org/curated/en/653411647279081382/Targeting-in-Tax-Compliance-Interventions-Experimental-Evidence-from-Honduras https://hdl.handle.net/10986/37155 |
| work_keys_str_mv |
AT delcarmengiselle targetingintaxcomplianceinterventions AT espinalhernandezedgardoenrique targetingintaxcomplianceinterventions AT degouveascotdearrudathiago targetingintaxcomplianceinterventions AT delcarmengiselle experimentalevidencefromhonduras AT espinalhernandezedgardoenrique experimentalevidencefromhonduras AT degouveascotdearrudathiago experimentalevidencefromhonduras |
| _version_ |
1813416988257550336 |