Technology and Corruption: Evidence from a Tax Administration Field Experiment in Tajikistan

Abstract:

We study the impact of technological innovations on corruption by examining the adoption and subsequent impact of electronic tax filing in Tajikistan. Electronic filing allows taxpayers to submit their tax declarations online thereby avoiding interactions with tax officials during monthly tax submissions. We examine whether firms’ risk of tax evasion predicts their likelihood of adopting e-filing, since higher risk firms may differentially benefit from frequent contact with inspectors and paper records. Next, we study the impact of e-filing adoption on firms’ perceptions of corruption in tax administration as well as their economic and tax behavior.

Last updated on 10/29/2015