American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Technology, Taxation, and Corruption: Evidence from the Introduction of Electronic Tax Filing
American Economic Journal: Economic Policy
vol. 14,
no. 1, February 2022
(pp. 341–72)
(Complimentary)
Abstract
Many 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.Citation
Okunogbe, 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.20200123Additional Materials
JEL Classification
- 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