How to Incentivize Tax Compliance when Households Demand Services?

EconPol Forum
| News

Tax relief for home maintenance services is not an effective means of tackling tax evasion. In Germany, it would cost the government a great deal of money while only marginally improving tax compliance. This is the finding of a survey of just under 2,000 private households in Germany. In total, 55 percent of respondents say that they would request an official invoice even if this didn’t entitle them to tax relief.