View metadata

dc.titleMassive Regularization for Effective Tax Payment: Evidence from Brazil
dc.contributor.authorYarygina, Anastasiya
dc.contributor.authorIketani, Eduardo
dc.contributor.authorMartínez, André
dc.contributor.authorTiburcio, Ernesto
dc.contributor.orgunitFiscal Management Division
dc.coverageBrazil
dc.coverageLatin America and the Caribbean
dc.coverageSouthern Cone
dc.coverageSouth America
dc.date.available2025-02-03T00:02:00
dc.date.issue2025-02-03T00:02:00
dc.description.abstractIn recent years, tax administrations around the globe have leveraged digital transformation to enhance processes and services to improve tax compliance. Massive self-regularization platforms, which identify noncompliant taxpayers, notify them about the detected inconsistencies, and allow them to amend the situation with the tax authority, are prominent examples of the digital transformation of tax administrations. This study presents the results of the randomized controlled trial evaluating the effectiveness of such a self-regularization platform in the Brazilian State of Para. The results show that the platform increased the amount of the taxes paid by 12.78 times and the probability of tax compliance by 236 percent. Overall, the effectiveness of self-regularization in recovering the evaded tax is 60 percent higher than that of the traditional audit-based approach. The amount of the correction in the declared tax increased by 2.33 times, and the probability of correction by 300 percent. Given the low marginal cost of self-regularization, the results suggest that these platforms are a remarkable opportunity for tax administrations to leverage digital transformation effectively and efficiently, improving tax compliance and increasing tax revenue.
dc.format.extent31
dc.identifier.doihttp://dx.doi.org/10.18235/0013392
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Massive-Regularization-for-Effective-Tax-Payment-Evidence-from-Brazil.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectTaxation
dc.subjectAuditing
dc.subjectDigital Infrastructure
dc.subjectSmall Business
dc.subjectTax Administration
dc.subjectTax Compliance
dc.subjectTaxpayer
dc.subjectTax Return
dc.subjectIndustrial Cluster
dc.subjectDigital Technology
dc.subject.jelcodeH26 - Tax Evasion and Avoidance
dc.subject.jelcodeH30 - Fiscal Policies and Behavior of Economic Agents: General
dc.subject.jelcodeH32 - Firm
dc.subject.jelcodeO38 - Government Policy
dc.subject.keywordsdigitalization;Tax compliance;Taxpayer support
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01621
idb.operationRG-T4120
Return to Publication