Does Tax Simplification Motivate Small Businesses to be More Compliant? Evidence from a Regression Discontinuity in Indonesia

Dados Bibliográficos

ID8416474
AutoresAgung Satyadini (0000-0003-4027-3006, Australian National University), Arifin Rosid (0000-0002-0304-1575, University of Indonesia)
Ano2024
Volume60
Fascículo2
Páginas217-238
Data de publicação2024-05-03
Peer ReviewedSim
Open AccessSim
TipoARTICLE
PeriódicoBulletin of Indonesian Economic Studies (JOURNAL)
Identificadores do periódicoISSN: 0007-4918 • E-ISSN: 1472-7234
EditoraInforma UK Limited (PUBLISHER • GB)
DOI10.1080/00074918.2023.2252746
OpenAlexW4386482060
IdiomaEN
Citações recebidas1
Referências citadas43

This research investigates how the tax simplification program in Indonesia affects tax compliance among small businesses. This study employs a regression discontinuity design and examines various parameters of tax compliance. The results indicate that tax simplification does not significantly influence tax payment behaviour. However, it does have a positive effect on overall tax compliance, as evidenced by increased reporting frequency and decreased penalties. Investigation of the heterogeneous treatment impact reveals a considerable variation in treatment effects across geographic areas and internet accessibility. Taxpayers located in areas with decent internet connectivity and proximity to the tax office appear to benefit more from the program's implementation

Business · Economics · Endowment · Payment · Political science · Public economics · Regression discontinuity design · The Internet · Accounting · Computer Science · Corporate Taxation and Avoidance · Finance · Gender, Labor, and Family Dynamics · Law · Taxation and Compliance Studies