Behavioral Insights to Improve Tax Compliance : A Practitioner’s Guide

Overview & Synopsis

Integrating behavioral insights into tax compliance is a pivotal advancement in public policy, transcending traditional economic models prioritizing enforcement. This approach acknowledges the influence of psychological and social factors on taxpayer behavior, such as trust in government, social norms, and the simplicity of compliance procedures. Governments can cultivate stronger fiscal contracts with citizens by refining decision-making frameworks, enhancing the relevance and credibility of information, and fostering better interactions between taxpayers and tax officials. This results in improved tax morale and voluntary compliance, paving the way for tax systems that are both more effective and fairer. This guidebook is designed for revenue authority technical staff who work with data, interact with taxpayers, and contribute to enhancing tax compliance strategies, with the goal of providing them with in-depth resources to apply behavioral insights.