Social norms and tax repayment
Norm-based and public goods letters’ impact on tax repayment behavior
In general, prospective tax payers are late paying in making their payments. BIT in the UK tested an experiment where five different types of letters were sent to these tax-payers: a letter that evoked the basic norm, country norm, minority norm, public gain, and public loss. After an extensive investigation, it was found that norm-based and public goods letters increases the likelihood of people paying their taxes.