Publication Code: Q2
by Nipon
Poapongsakorn, Kovit Charnvitayapong,
Duangmanee Laovakul, Somchai Suksiriserekul, and Bev Dahlby
This cost-benefit analysis of the
Government of Thailand's taxpayer survey was requested by the Internal Revenue Department,
which is responsible for enforcing tax compliance and tax collections. The study includes
a model of taxpayer behavior in the face of imperfect enforcement mechanisms, and the
derivation of criteria for optimizing resources allocated to tax enforcement. Based on
data from the current taxpayer survey, it finds that an increase in resources devoted to
ensuring tax registration of small and medium businesses is not likely to be justified.
The paper explores the effects of distributional weights, the shadow price of tax revenue,
preferences for horizontal equity, and the uses of additional tax revenues on the
enforcement decision.
August 1995