Tax official visits raised trust in rich areas, cut it in poor ones
Researchers at the International Centre for Taxation and Development ran a randomised trial in Tanzania, placing tax officials in some wards during a survey of 1,210 small businesses. Trust and tax payments rose in wealthier regions and fell in the poorest.
The team worked with the Tanzania Revenue Authority. In 119 wards, split at random, an official sat in silently on interviews in half of them. The researchers linked survey answers to tax records for roughly 40,000 firms, and trust and payments moved together. They write about their own study in an essay, and it covers Tanzania only. On average, the visits had little effect on whether firms paid.