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Taxpayer Service Provision and Tax Compliance: Evidence for Large Taxpayers in Jamaica

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  • Oronde Small
  • Leanora Brown

Abstract

This research examines the effect of the provision of taxpayer services on filing and payment compliance for the corporate income tax (CIT) and general consumption tax (GCT) for large taxpayers in Jamaica. We focus on taxpayer’s decision to file and pay taxes conditional on reporting positive tax liabilities. The empirical strategy adopts a regression discontinuity design that exploits an exogenous jump in the intensity of taxpayer service delivery that occurs at an arbitrary gross receipts threshold. The results indicate null effects for the CIT where enforcement is relatively weak but positive filing and payment compliance effects for the GCT where enforcement is stronger. This is suggestive of a complementarity between the enforcement strength of the tax regime and service delivery.

Suggested Citation

  • Oronde Small & Leanora Brown, 2020. "Taxpayer Service Provision and Tax Compliance: Evidence for Large Taxpayers in Jamaica," Public Finance Review, , vol. 48(2), pages 250-277, March.
    • Handle: RePEc:sae:pubfin:v:48:y:2020:i:2:p:250-277
    DOI: 10.1177/1091142119881532
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    References listed on IDEAS

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