The effect of a tax training program on tax compliance and business outcomes of starting entrepreneurs: Evidence from a field experiment

Hanskje Nagel*, Laura Rosendahl Huber, Mirjam Van Praag, Sjoerd Goslinga

*Corresponding author for this work

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

This paper estimates the long-term impact of a short, partly personalized, mandatory tax training program on tax compliance and business outcomes of first-time entrepreneurs. To this end, we combine survey data, audit data and unique register data from the Netherlands’ Tax and Customs Administration with a three year long randomized experiment. The results show that the training affects specific domains of tax compliant behavior. Moreover, it has no impact on business survival, but treated entrepreneurs have significantly higher profits compared to the control group due to lower business costs. These outcomes are partially supportive of our hypotheses developed from theories on tax compliance and mental accounting.

Original languageEnglish
Pages (from-to)261-283
Number of pages23
JournalJournal of Business Venturing
Volume34
Issue number2
DOIs
Publication statusPublished - 1 Mar 2019
Externally publishedYes

Keywords

  • Entrepreneurial behavior
  • Field experiment
  • First-time entrepreneurs
  • Intervention
  • New venture performance
  • Tax compliance
  • Tax training

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