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Effects of supervision on tax compliance: Evidence from a field experiment in Austria

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  • Gangl, Katharina
  • Torgler, Benno
  • Kirchler, Erich
  • Hofmann, Eva

Abstract

We conduct a field experiment on tax compliance, focusing on newly founded firms. As a novelty the effect of tax authorities’ supervision on timely tax payments is examined. Interestingly, results show no positive overall effect of close supervision on tax compliance.

Suggested Citation

  • Gangl, Katharina & Torgler, Benno & Kirchler, Erich & Hofmann, Eva, 2014. "Effects of supervision on tax compliance: Evidence from a field experiment in Austria," Economics Letters, Elsevier, vol. 123(3), pages 378-382.
    • Handle: RePEc:eee:ecolet:v:123:y:2014:i:3:p:378-382
    DOI: 10.1016/j.econlet.2014.03.027
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    More about this item

    Keywords

    Tax compliance; Tax evasion; Field experiment; Deterrence; Supervision;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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