Why are tax systems complex despite a conventional wisdom that simplification is desirable? We study attitudes towards tax simplification using new survey and experimental data. We first document that most…
The European Union (EU) recently implemented the Minimum Tax Directive (Pillar Two) to ensure that profits of large companies are at least taxed at 15%. At the same time, the European Commission proposed the…
Can developing countries benefit from exporting opportunities in the growing sector of tradable services, given the near free information flow via the internet and wage differentials relative to developed…
The advantages of adaptive experiments have led to their rapid adoption in economics, other fields, as well as among practitioners. However, adaptive experiments pose challenges for causal inference. This note…
We investigate whether firms engage in VAT evasion at the retail stage—typically a point of weakness in VAT systems—in a high-enforcement, low-informality setting. To measure evasion, we exploit a reform of VAT…
We evaluate a tax reform in Ecuador that introduced generous deductions from personal income taxes (PIT), encouraging consumers to request receipts. The reform addresses tax evasion by targeting small…
The purpose of this paper is to evaluate the effect of reverse-charge mechanism (RCM) implementation on VAT compliance using an overall, countrylevel measure of VAT compliance, the VAT gap. The VAT gap is…