'Do You Want a Receipt?' Combating VAT and Sales Tax Evasion with Lottery Tickets: Involving Customers

Fabbri, Marco; Hemels, Sigrid

doi:10.2139/ssrn.2232249

Cited by 5 publications

(5 citation statements)

References 8 publications

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“…Significance of attitude on behaviour intention implies that, most of the customers acknowlege goodness, desirability or importance of asking for sales receipt, but as it has been cautioned [31,32] if customers do not see the direct benefit of tax collected by their act of asking of receipts, then this positive attitude might not guarantee the willingnes to implement the behaviour. This is verified by findings which shows that 87.3 percent of respondents agreed to the fact that, asking for receipt will enhance government revenue, but fewer customers (68.7%) see enhancing government revenue to be of importance.…”

Section: Discussion and Implicationmentioning

confidence: 99%

Underlying Factors on Consumer’s Behaviour in Asking for Sales Receipts Towards Tax Collection Maximization: An Application of Theory of Planned Behaviour

Mwang’onda¹

2018

PBS

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Tax administrations have been working on how to deal with non-compliance behaviour at minimal cost, while maximizing collections without affecting efficiency operations of entities in an economy. Studies have been done to understand complexity of this behaviour from economic, social norms, ethical and psychological perspectives. Using theory of planned behaviour (TPB), this study embarks on the same journey by investigating the behaviour of consumer as third-party tax enforcer through asking for sales receipts after transaction. From data collected at Dodoma Municipality by questioning 118 respondents, the study unveils that, attitude and subjective norms have a positive effect on intention to ask for sales receipt, while; there was no effect of perceive behaviour control on customer's intention to ask for sales receipt. Most of the customers acknowlege goodness, desirability or importance of asking for sales receipt, which is argued to have implication on effeciency of tax collection exercise. Morover relatives and friends have significant effect of individual behaviour of asking for receipt, thus existance of habit of asking for sales receipt among community members reduces moral and ethical cost of acting as a third-party tax enforcer. Efforts should be directed more toward winning consumers' support rather than using more force on traders, and adoption and use of EFDs should go parallel with other strategies aiming at improving tax collection.

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Section: Discussion and Implicationmentioning

confidence: 99%

Underlying Factors on Consumer’s Behaviour in Asking for Sales Receipts Towards Tax Collection Maximization: An Application of Theory of Planned Behaviour

Mwang’onda¹

2018

PBS

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“…As anti-smoking laws led to less exposure to smoking in the general public, societal tolerance toward acts of public smoking also decreased, leading to even higher social sanctions and even less public smoking (Nyborg and Rege 2003). Similar examples of policy-driven social norm shifts include the prevalence of seat belt use following enforcement legislation in North America (Jonah 1984;James Hedlund et al 2008), the abrupt end to female foot-binding in China (Mackie 1996), and the successful introduction of the uniform invoice lottery system to combat tax evasion in Taiwan (Fabbri and Hemels 2013).…”

Section: Harnessing Policy Change For Norm Changementioning

confidence: 99%

Close encounters of the worst kind: reforms needed to curb coral reef damage by recreational divers

Lin

2021

Coral Reefs

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Intentional and unintentional physical contact between scuba divers and the seabed is made by most divers and multiple times per dive, which often results in damage to corals and other marine life. Current efforts to reduce reef contacts (e.g., voluntary dive operator recognition programs and voluntary dive standards) can be effective, but lack sufficient incentive structures for long-term compliance. In their current capacity, these programs fail to reduce reef contacts to tolerable levels. Regulatory policies can facilitate pervasive and permanent shifts in human behavior, but have been underutilized to change unsustainable underwater norms. Most coral reefs open to recreational diving lie within territorial waters of individual countries, and many already have existing forms of protection with legislation that can be easily modified. Successful policy precedents in Marine Protected Areas (e.g., bans on underwater glove use) and elsewhere (e.g., anti-smoking laws in public spaces and legislation enforcing seat belt use) demonstrate the largely untapped potential of using effective governance to change destructive diving norms for good. To reduce intentional reef contacts, policy-makers can enact regulations in MPAs directly banning all contact between divers and the seabed. To reduce unintentional contacts, policy-makers can create policy safeguards that preempt such occurrences (e.g., requiring divers to keep a certain distance from the seabed). Crucially, such policies will need accompanying formal and informal enforcement measures that are equitable, effective, and efficient to motivate compliance and effect lasting behavior change. Having a robust, well-enforced, regulatory framework to tackle both types of reef contacts lends credence to the efforts of existing conservation programs, and is key to permanently changing divers’ underwater attitudes and fostering sustainable scuba diving behavior to the benefit of all.

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“…Notice that, in the eventuality of tax audit controls, the tax police can verify that the payments correspond to the difference between IVA on sales and IVA on costs: each must correspond to the sum of amounts reported on receipts issued and received, respectively. Typically, evading IVA involves selling a good or service without issuing a receipt 14 (Fabbri and Hemels, 2013;Battiston and Gamba, 2016) and hence underreporting sales. Indeed, for B2C activities, this is much easier than fabricating evidence of non-existent purchases of inputs in order to overreport costs (this is the essence of the already mentioned "paper trail").…”

Section: Datamentioning

confidence: 99%

Audit Publicity and Tax Compliance: A Natural Experiment

Battiston

Duncan

Gamba

et al. 2019

Scandinavian J Economics

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We use confidential data on value‐added tax payments at the sector level, in two large Italian cities, to estimate the effect of audit publicity on the tax compliance of local sellers. By employing a difference‐in‐differences identification strategy, we find that such publicity has a positive effect on fiscal declarations made shortly thereafter. The results suggest that increasing awareness on future audits via the media can be an important instrument in the hands of tax authorities.

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'Do You Want a Receipt?' Combating VAT and Sales Tax Evasion with Lottery Tickets: Involving Customers

Cited by 5 publications

References 8 publications

Underlying Factors on Consumer’s Behaviour in Asking for Sales Receipts Towards Tax Collection Maximization: An Application of Theory of Planned Behaviour

Underlying Factors on Consumer’s Behaviour in Asking for Sales Receipts Towards Tax Collection Maximization: An Application of Theory of Planned Behaviour

Close encounters of the worst kind: reforms needed to curb coral reef damage by recreational divers

Audit Publicity and Tax Compliance: A Natural Experiment

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