Template-Type: ReDIF-Paper 1.0
Author-Name: Essi Eerola
Author-Name-First: Essi 
Author-Name-Last: Eerola
Author-Email: essi.eerola@bof.fi
Author-Workplace-Name: Bank of Finland
Author-Name: Tuomas Kosonen
Author-Name-First: Tuomas 
Author-Name-Last: Kosonen
Author-Email: tuomas.kosonen@vatt.fi
Author-Workplace-Name: Finnish Centre of Excellence in Tax Systems Research, VATT Institute for Economic Research 
Author-Name: Kaisa Kotakorpi
Author-Name-First: Kaisa 
Author-Name-Last: Kotakorpi
Author-Email: kaisa.kotakorpi@tuni.fi
Author-Workplace-Name: Finnish Centre of Excellence in Tax Systems Research, Tampere University, VATT Institute for Economic Research 
Author-Name: Teemu Lyytikäinen
Author-Name-First: Teemu 
Author-Name-Last: Lyytikäinen
Author-Email: teemu.lyytikainen@vatt.fi
Author-Workplace-Name: Finnish Centre of Excellence in Tax Systems ResearchVATT Institute for Economic Research 
Title: Tax Compliance in the Rental Housing Market: Evidence from a Field Experiment
Abstract: We study rental income tax compliance using novel third-party information and a large-scale randomized field experiment. The third-party information combines register data on the ownership and occupancy of apartments. The RCT sent information letters about the usage of third-party information in tax enforcement. This increased the propensity to report rental income and the amount of reported rental income net of expenses. Our research design also allows us to identify members of ownership networks and analyze spillover effects in tax enforcement between them. We find positive reporting spillovers. We do not find evidence of real effects on asset market transactions. 
Length: 48 pages
Creation-Date: 2023-06
Publication-Status: Published in FIT Working Paper Series, Finnish Center of Excellence in Tax Systems Research
File-URL: https://verotutkimus.fi/verotutkimus/wp-content/uploads/2023/06/FIT-WP-14-Tax-Compliance-in-the-Rental-Housing-Market-300623.pdf
File-Format: Application/pdf
File-Function: New and expanded version, 2023
Number: 14
Classification-JEL: H26, H31
Keywords: Tax compliance, field experiment, rental market, spillovers, real effects of tax enforcement
Handle: RePEc:fit:wpaper:14