Downloads
![Image representing the file: WP202244-Firms-as-tax-collectors.pdf](/sites/default/files/2022-10/WP202244-Firms-as-tax-collectors_0.pdf.jpg)
WP202244-Firms-as-tax-collectors.pdf
PDF | 987.03 KB
We show that delegating tax collection to large firms can help build tax capacity in weak-enforcement settings. We exploit two reforms in Argentina that dramatically expanded and subsequently reduced turnover tax withholding by firms. Combining firm-to-firm data with regression discontinuity and difference-in-differences methods around revenue eligibility thresholds we find that: (i) large firms appointed as collection agents (CAs) are not affected, (ii) firms commercially linked to CAs self-report more sales by 5.8 percent in response to higher withholding, (iii) firms respond symmetrically to a decrease in withholding by reporting lower sales. Tax-collecting firms can thus boost compliance and tax revenue.
Authors
![Dario Tortarolo](/sites/default/files/styles/square_desktop/public/2022-05/Dario%20Tortarolo.jpg?itok=5Jb7SAWP)
Research Associate World Bank
Dario is a Research Associate of the IFS, interested in Public Finance and Labour Economics, with a particular interest in developing countries.
![Pablo Garriga](/sites/default/files/styles/square_desktop/public/2022-10/pablo-garriga.jpg?itok=YeMvIIxm)
Research Economist World Bank
Working Paper details
- Publisher
- Institute for Fiscal Studies
Suggested citation
Garriga, P and Tortarolo, D. (2022). Firms as tax collectors. 22/44. London: Institute for Fiscal Studies. Available at: https://ifs.org.uk/publications/firms-tax-collectors (accessed: 30 June 2024).
More from IFS
Understand this issue
![Microphone](/sites/default/files/styles/square_desktop/public/2024-06/Microphone.jpg?itok=soM7Wvbz)
Election Special: Your questions answered
27 June 2024
![Interview](/sites/default/files/styles/square_desktop/public/2024-06/1.jpg?itok=mjderngL)
Election Special: The big issues politicians haven't spoken about
25 June 2024
![Kier Starmer](/sites/default/files/styles/square_desktop/public/2024-06/Lab1.jpg?itok=43eIsvgM)
Election Special: The Labour manifesto explained
14 June 2024
Policy analysis
![Welsh town with mountains behind](/sites/default/files/styles/square_desktop/public/2024-06/Welsh-town-feature.jpg?itok=5axb5wZn)
How would the parties’ tax and spending plans affect Scotland and Wales?
28 June 2024
![Polling station](/sites/default/files/styles/square_desktop/public/2024-06/Polling-station-school.jpg?itok=uS-l6b-1)
What are the parties’ plans for benefits and taxes?
24 June 2024
![Shopping street](/sites/default/files/styles/square_desktop/public/2024-06/Street-scene-.jpg?itok=R39cR6Xp)
How do the last five years measure up on levelling up?
19 June 2024
Academic research
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-05/WP202423-Targeting-men-women-or-both-to-reduce-child-marriage_Page_01.jpg?itok=llhHsGnn)
Targeting men, women or both to reduce child marriage
28 May 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-05/WP202422-Keeping-the-peace-while-getting-your-way-information-persuasion-and-intimate-partner-violence_Page_01.jpg?itok=JR-kAVHv)
Keeping the peace whilst getting your way: Information, persuasion and intimate partner violence
17 May 2024
![Working Paper Cover](/sites/default/files/styles/portrait/public/2024-05/WP202419-Forced-displacement-mental-health-and-child-development-evidence-from-the-rohingya-refugees_Page_01.jpg?itok=ZnUTIDEq)
Forced displacement, mental health, and child development: Evidence from Rohingya refugees
10 May 2024