VAT Compliance Incentives

Estimating VAT Policy and Compliance Gap across the Iran’s Provinces

Abstract This paper aims to propose a method for measuring the value added tax gap decomposed into two main components: compliance and policy gaps. By definition, policy gap is the difference between the potential tax revenue and what can be collected according to tax code. In comparison, the compliance gap is defined as the difference between full compliance with tax code and the actual compl...

Do Audits Enhance Compliance? An Empirical Assessment of VAT Enforcement

817 National Tax Journal Vol. LIX, No. 4 December 2006 Abstract Research on the effects of audits on individual compliance has been inconclusive. In this paper, we analyze for the fi rst time VAT tax return information and enforcement data to assess the impact of audits on subsequent compliance of taxpayers in Argentina and Chile. The evidence of this unique data set shows that audits have the ...

Improving prevention compliance through appropriate incentives

This paper theoretically and empirically explores the effects of insurance parameters and a complementary information environment on patient ́s primary prevention activity in the context of a managed care organisation. The theoretical model is based on a principal-agent setting in which the patient is acting as an agent in deciding about his preventive effort. Both for the patient and for the in...

Compliance with advance directives. Wrongful living and tort law incentives.

The roles of incentives and voluntary cooperation for contractual compliance

Efficiency under contractual incompleteness often requires voluntary cooperation in situations where self-regarding incentives for contractual compliance are present as well. Here we provide a comprehensive experimental analysis based on the gift-exchange game of how explicit and implicit incentives affect cooperation. We first show that there is substantial cooperation under non-incentive comp...