Reminding businesses that tax authorities are watching does increase tax revenue collected, but only while the intervention lasts Read “Threat of audits and tax morale in Africa: Evidence from randomized field experiment in Ethiopia” by Abebe Shimeles, Daniel Gurara, and Firew Woldeyes here. Low-income countries collect notably less tax revenue than high-income countries, often due to lower state capacity to collect taxes as well as low levels of public trust in how the collected funds are used.
