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Do taxpayer assistance programs improve compliance among small firms? Evidence from Brazil

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  • Covre, Simone
  • Muller Prado, Paulo Henrique
  • Mattos, Enlinson

Abstract

This paper examines the effects of taxpayer assistance on corporate tax compliance using administrative data from Brazil’s simplified tax regime (Simples Nacional). Exploiting two large-scale assistance campaigns implemented at different points in time, we adopt a difference-in-differences design, using firms treated later as a control group. We find that assistance generates a large and statistically significant short-run increase in reported tax liabilities: reported amounts rise by 41 percent on average, with peak effects exceeding 270 percent within three months, driven by adjustment tax liabilities. However, these effects are temporary and dissipate within fifteen months. Firms exposed to repeated interventions respond more strongly, suggesting reinforcement effects.

Suggested Citation

  • Covre, Simone & Muller Prado, Paulo Henrique & Mattos, Enlinson, 2026. "Do taxpayer assistance programs improve compliance among small firms? Evidence from Brazil," Economics Letters, Elsevier, vol. 267(C).
    • Handle: RePEc:eee:ecolet:v:267:y:2026:i:c:s0165176526002703
    DOI: 10.1016/j.econlet.2026.113076
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