Missing Miles: Evasion Responses to Car Taxes
Harju, Jarkko; Kosonen, Tuomas; Slemrod, Joel (2019-10-03)
Harju, Jarkko
Kosonen, Tuomas
Slemrod, Joel
Valtion taloudellinen tutkimuskeskus
03.10.2019
Julkaisun pysyvä osoite on
https://urn.fi/URN:ISBN:978-952-274-242-1
https://urn.fi/URN:ISBN:978-952-274-242-1
Kuvaus
nonPeerReviewed
Tiivistelmä
We study a tax evasion response to car taxes in Finland, where used car importers overstate the mileage to reduce tax liability. First, we develop a tax evasion measure by comparing reported mileage upon import with subsequent information from vehicle inspections, and find that a decline in mileage — "missing miles" — occurs frequently. Second, we analyze a tax rate increase, and observe a reduction in the number of imported used cars, but only among non-evaders. Finally, we analyze an RCT informing some potential importers about a program of inspections that uncover true odometer readings, and the results suggest that thirdparty reporting reduces evasion.
Tutkimusteema
Social security, taxation and inequality
JEL
H21, H23, H26, C93
Avainsanat
car tax, tax evasion, enforcement measures
Kokoelmat
- VATT Working Papers [163]