Missing miles: Evasion responses to car taxes
Harju, Jarkko; Kosonen, Tuomas; Slemrod, Joel (2020)
Tässä tietueessa ei ole tiedostoja, ainoastaan metadata.
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 uncovers true odometer readings, and the results suggest that third-party reporting reduces evasion.
H21, H23, H26, C93
Car tax, Tax evasion, Enforcement measures