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The Role of Information in Tax Compliance: Evidence from a Natural Field Experiment

This paper studies how much firms make unintentional mistakes in their tax filing, and to what extent this can be affected by providing information about the tax code. We utilize a novel natural field experiment design, where we candidly provide information to firms reporting their VAT within a survey. The results indicate that firms make unintentional mistakes in their tax reporting and that informing about tax rules reduces these mistakes significantly.