What you do (not) get when expanding the net - Evidence from forced taxpayer registrations in South Africa
利用南非商业税与商业登记的数据同步，研究了强制企业纳入税网后的合规行为与财政收入效果，发现虽然新登记企业纳税少，但总体收入增加且干预成本有效。
A significant share of firms in developing countries is not registered for income taxation. Expanding the tax net is a priority for many governments, but most formalization policies proved relatively ineffective in bringing firms into the tax net. Drawing on rich tax administrative data, we document that snapshot-synchronizations of the business tax and the commercial registry in South Africa led to a large-scale expansion of the South African business taxpayer net. While the targeted firms are a valuable segment within the non-formal sector, we show that their post-registration tax compliance is weak and few of them pay taxes. Owing to the large scope of the tax net expansion, the aggregate revenue gains are, nevertheless, non-negligible and the interventions are fiscally cost-effective. In additional analyses, we provide evidence for enforcement spillovers: In areas where many firms were drawn into the tax net, tax registration timing compliance significantly improved after the snapshot synchronizations. We find no indication of a drop in registration numbers at the commercial registry. • We study synchronizations of business tax and commercial registry in South Africa. • The interventions significantly expanded the South African business taxpayer net. • Post-registration compliance of forcedly-registered firms is weak. • Aggregate revenue gains are, nevertheless, non-negligible. • Tax registration timing compliance significantly improved after the inventions.