Due to maintenance work, the content of ssb.no may be unstable between 4pm and 6pm today. We apologise for any inconvenience this may cause.

Discussion Papers no. 770

Deterrence effects of public disclosure

Taxes on the internet

Supporters of public disclosure of personal tax information point to its deterrent effect on tax evasion, but this effect has not been empirically explored.

Supporters of public disclosure of personal tax information point to its deterrent effect on tax evasion, but this effect has not been empirically explored. Although Norway has a long tradition of public disclosure of tax filings, it took a new direction in 2001 when anyone with access to the Internet could obtain individual information on income, wealth, and income and wealth taxes paid. We exploit this change in the degree of exposure to identify the effects of public disclosure on income reporting. Identification of the deterrence effects of public disclosure is facilitated by the fact that, prior to the shift to the Internet in 2001, some municipalities had exposure which was close to the Internet type of public disclosure, as tax information was distributed widely through paper catalogues that were locally disseminated. We observe income changes that are consistent with public disclosure deterring tax evasion: an approximately 3 percent higher average increase in reported income is found among business owners living in areas where the switch to Internet disclosure represented a large change in access.

About the publication

Title

Taxes on the internet. Deterrence effects of public disclosure

Authors

Erlend Eide Bø, Joel Slemrod, Thor Olav Thoresen

Series and number

Discussion Papers no. 770

Publisher

Statistics Norway

Topic

Discussion Papers

ISSN

0809-733X1892-753X

Number of pages

38

Language

English

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

Contact