Work

Misreporting in the Norwegian business cash support scheme

Year: 2024

Type: article

Abstract: We analyze the reporting response to an ambitiously targeted government support scheme for Norwegian businesses at the very start of the Coronavirus crisis in 2020. Our empirical design is based on cross-checking self-reported data in the applications for support with administratively reported data used for VAT. We find strong evidence that strategic misreporting was present but conclude that its remaining quantitative extent after enforcement actions already taken by the tax authorities was relatively small. Firms tend to misreport 4% more often than expected, and the actual support paid out was 5% higher than it should have been. We discuss possible reasons for the relatively limited extent of non-compliance and more general lessons for the design of transfer programs.

Source: International Tax and Public Finance

DOI: 10.1007/s10797-024-09857-6

Authors: Dinara Alpysbayeva, Annette Alstadsæter, Wojciech Kopczuk, Simen Markussen, Oddbjørn Raaum

Institutions: Norwegian University of Life Sciences, Columbia University, Ragnar Frisch Centre for Economic Research

Language: English

Topic: Taxation and Compliance Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $2,990