Working Paper: NBER ID: w31467
Authors: Jeffrey L. Hoopes; Leslie Robinson; Joel Slemrod
Abstract: Policies that require, or recommend, disclosure of corporate tax information are becoming more common throughout the world, as are examples of tax-related information increasingly influencing public policy and perceptions. In addition, companies are increasing the voluntary provision of tax-related information. We describe those trends and place them within a taxonomy of public and private tax disclosure. We then review the academic literature on corporate tax disclosures and discuss what is known about their effects. One key takeaway is the paucity of evidence that many tax disclosures mandated with the aim of increasing tax revenue have produced additional revenue. We highlight many crucial unanswered questions, answers to which would inform future tax legislation and financial accounting rule making.
Keywords: corporate tax disclosure; tax compliance; public policy
JEL Codes: H25
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| mandatory tax disclosures (H20) | amount of reported taxable income (H26) |
| mandatory tax disclosures (H20) | income shifting (H22) |
| regulatory environment (G38) | firm behavior (D21) |
| IRS's Compliance Assurance Process (H26) | voluntary disclosures (G38) |