Devising Administrative Policies for Improving Tax Compliance

Abstract

How can administrative policies be devised to improve tax compliance? To answer this broad question, the author examines three specific questions. First, why do people pay their taxes? Second, what impacts have recent technological innovations had on tax administration and tax compliance? Third, what are the implications of all of this research for tax administrations? In the spirit of much of Richard Bird’s work, the author examines the academic research on these questions that is relevant for both developed and developing countries, focusing on the research findings that may be of some use in administrative efforts to improve tax compliance. The author concludes by discussing unresolved issues and future research trends.

Keywords: Tax Evasion, Tax Administration, Audits, Technology, Digitization