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A Field Experiment in Moral Suasion and Tax Compliance Focusing on Underdeclaration and Overdeduction

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  • Benno Torgler

Abstract

One of very few field experiments in tax compliance, this study generates a unique data set on Swiss taxpayers' underdeclaration of income and wealth and overdeduction of tax credits by obtaining exclusive access to tax-return corrections made by the tax administration. Using this commune-level data from Switzerland, it explores the influence on tax compliance of moral suasion, introduced through a treatment in which taxpayers receive a letter containing normative appeals signed by the commune's fiscal commissioner. This letter also serves to operationalize elements of social identity and (mutual) trust. Interestingly, the results not only echo the earlier finding that moral suasion has barely any effect on taxpayer compliance, but show clear differences between underdeclaration and overdeduction.

Suggested Citation

  • Benno Torgler, 2013. "A Field Experiment in Moral Suasion and Tax Compliance Focusing on Underdeclaration and Overdeduction," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 69(4), pages 393-411, December.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(201312)69:4_393:afeims_2.0.tx_2-t
    DOI: 10.1628/001522108X675647
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    tax compliance; moral suasion; social identity; (mutual) trust; field experiment;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments

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