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Behavioural prompts to increase early filing of tax returns: a population-level randomised controlled trial of 11.2 million taxpayers in Indonesia

Author

Listed:
  • Persian, Ruth
  • Prastuti, Gitarani
  • Adityawarman,
  • Bogiatzis-Gibbons, Daniel
  • Kurniawan, Muhammad Hakim
  • Subroto, Gatot
  • Mustakim, Muhammad
  • Scheunemann, Laurenz
  • Gandy, Kizzy
  • Sutherland, Alex

Abstract

In Indonesia, as in other countries, a large proportion of tax returns are filed at the last minute. In a population-wide randomised controlled trial (n = 11,157,069), we evaluated the impact of behavioural email prompts on the proportion of annual tax returns filed at least two weeks before the deadline; and overall filing rate. In two control conditions, taxpayers either received no email or an email used in prior years, emphasising regulatory information. The five treatments informed by behavioural science were (1) a simplified version of the existing email, emphasising early filing; (2) the simplified version with additional guidance on filing taxes; (3) the simplified version with a planning prompt and option to sign up for email reminders; (4) a version combining treatments 1, 2 and 3; and (5) an email appealing to national pride. Compared to the no-email control, all emails led to a statistically significant increase in early and overall filing rates. The planning email (3) was the most effective, increasing early filling from 34.9% to 37% (b 2.07 percentage points (pp), p

Suggested Citation

  • Persian, Ruth & Prastuti, Gitarani & Adityawarman, & Bogiatzis-Gibbons, Daniel & Kurniawan, Muhammad Hakim & Subroto, Gatot & Mustakim, Muhammad & Scheunemann, Laurenz & Gandy, Kizzy & Sutherland, Ale, 2023. "Behavioural prompts to increase early filing of tax returns: a population-level randomised controlled trial of 11.2 million taxpayers in Indonesia," Behavioural Public Policy, Cambridge University Press, vol. 7(3), pages 701-720, July.
    • Handle: RePEc:cup:bpubpo:v:7:y:2023:i:3:p:701-720_7
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    Cited by:

    1. Antinyan, Armenak & Asatryan, Zareh, 2019. "Nudging for tax compliance: A meta-analysis," ZEW Discussion Papers 19-055, ZEW - Leibniz Centre for European Economic Research.
    2. Yogama, Eko Arief & Gray, Daniel J. & Rablen, Matthew D., 2024. "Nudging for prompt tax penalty payment: Evidence from a field experiment in Indonesia," Journal of Economic Behavior & Organization, Elsevier, vol. 224(C), pages 548-579.
    3. Sloboda, Matúš & Pavlovský, Patrik & Sičáková-Beblavá, Emília, 2024. "Simplify and Deter: Nudging waste collection fee debtors," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 111(C).

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