Reducing evasion through self-reporting: Evidence from charitable contributions

• 成果类型: Article
• 署名作者: Tazhitdinova, Alisa
• 署名单位: McMaster University
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2018.06.001
• 发表日期: 2018
• 页码: 31-47
• 关键词: Information reporting; evasion; Compliance cost; Tax filing; Charitable giving

摘要

In absence of third-party reporting, taxpayers are required to self-report information with various degrees of detail, ranging from uncorroborated claims to comprehensive records with receipts. Using a quasi experimental design applied to noncash charitable contribution deductions, I show that even basic self reporting requirements are effective at reducing evasion but impose large compliance costs on taxpayers. I find that simplified reporting requirements reduce reporting costs by $55 per person and substantially increase claimed donations. However, half of the new donations are due to evasion. Thus, information reporting should only be imposed on total reported donations above a pre-specified threshold. (C) 2018 Elsevier B.V. All rights reserved.