Technology, Taxation, and Corruption: Evidence from the Introduction of Electronic Tax Filing
AbstractMany e-government initiatives introduce technology to improve efficiency and avoid potential human bias. Using experimental variation, we examine the impact of electronic tax filing (to replace in-person submission to tax officials) using data from Tajikistan firms. E-filing reduces the time firms spend on taxes by 40 percent. Further, among firms previously more likely to evade, e-filing doubles taxes paid. Conversely, evidence suggests that e-filing reduces tax payments among firms previously less likely to evade. These firms also pay fewer bribes, as e-filing reduces extortion opportunities. These patterns are consistent with differential treatment of firms by tax officials prior to e-filing.
CitationOkunogbe, Oyebola, and Victor Pouliquen. 2022. "Technology, Taxation, and Corruption: Evidence from the Introduction of Electronic Tax Filing." American Economic Journal: Economic Policy, 14 (1): 341-72. DOI: 10.1257/pol.20200123
- D22 Firm Behavior: Empirical Analysis
- H25 Business Taxes and Subsidies including sales and value-added (VAT)
- H26 Tax Evasion and Avoidance
- O14 Industrialization; Manufacturing and Service Industries; Choice of Technology
- O23 Fiscal and Monetary Policy in Development