| Abstract |
This paper investigates the effect of electronic tax filing on compliance costs and tax evasion using administrative data on Japanese corporations. Leveraging a reform mandating large corporations to adopt e-filing, we find that amendment submissions fell by one-third, indicating reduced compliance costs. The effects are larger for corporations with lower compliance and those in a central city. However, we find no effects on changes in tax evasion or payments, suggesting that digitalization improves administrative efficiency without significantly altering taxpayer behavior in a context with already high compliance and a well-functioning tax administration.
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