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To file or not to file? Another dimension of tax compliance - the Eswatini Taxpayers’ survey

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  • Santoro, Fabrizio

Abstract

Non-filing, the failure to submit a tax declaration, is a widespread phenomenon in sub-Saharan Africa and produces detrimental fiscal effects, from impaired revenue mobilisation to inequality. Non-filing has been largely unexplored in the public finance literature, which focusses mosty on active filers. This paper sheds light on the determinants of non-filing, building on neoclassical and behavioural theories, and adds to the methodological discussion on how to measure tax compliance. Focusing on Eswatini, I combine survey data from one thousand entrepreneurs with their tax returns over 2013–2018. I show that economic deterrence, compliance costs and moral factors, such as intrinsic motivation and peer pressure, correlates with filing. I also study how results change when using a self-reported measure of compliance. In terms of policy, results show that the tax authority could improve filing rates by balancing a deterrent and a service-oriented approach, and also by triggering the role of social norms.

Suggested Citation

  • Santoro, Fabrizio, 2021. "To file or not to file? Another dimension of tax compliance - the Eswatini Taxpayers’ survey," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 95(C).
    • Handle: RePEc:eee:soceco:v:95:y:2021:i:c:s2214804321001002
    DOI: 10.1016/j.socec.2021.101760
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    Cited by:

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    3. Oyebola Okunogbe & Fabrizio Santoro, 2023. "Increasing Tax Collection in African Countries: The Role of Information Technology," Journal of African Economies, Centre for the Study of African Economies, vol. 32(Supplemen), pages 57-83.
    4. Marina Dodlova & Krisztina Kis-Katos & Anna Kochanova & Olivia Wirth, 2023. "Mobile technologies and firm formalization: Evidence from Uganda," WIDER Working Paper Series wp-2023-99, World Institute for Development Economic Research (UNU-WIDER).
    5. Fabrizio Santoro & Ronald Waiswa, 2024. "How to improve tax compliance by wealthy individuals? Evidence from Uganda," Development Policy Review, Overseas Development Institute, vol. 42(2), March.
    6. Okunogbe,Oyebola Motunrayo & Santoro,Fabrizio, 2022. "Increasing Tax Collection in African Countries : The Role of Information Technology," Policy Research Working Paper Series 10182, The World Bank.
    7. Vanina Adoriana Trifan & Silviu Gabriel Szentesi & Lavinia Denisia Cuc & Mioara Florina Pantea, 2023. "Assessing Tax Compliance Behavior Among Romanian Taxpayers: An Empirical Case Study," SAGE Open, , vol. 13(3), pages 21582440231, September.
    8. Santoro, Fabrizio & Mascagni, Giulia, 2023. "Visual nudges: How deterrence and equity shape tax attitudes and behaviour in Rwanda," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 107(C).

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