Belgium’s Federal Public Service Finances experimented with different messages targeting late payers. This was done as part of a series of behavioural experiments to test new compliance approaches. Randomised-Controlled Tests add to an evidence-based policymaking with an eye for effect measurement of what a Tax Administration does.
One of the reminder letters (Personal Income Tax) framed enforcement actions on late payment as an instrument to protect and serve the majority of compliant taxpayers. The letter contains a paragraph that states: ‘We aim at an early collection of debts and go after non-voluntarily paid taxes out of respect for all taxpayers that do pay their taxes timely and correctly.’
Taxpayers appreciate this new approach. Redesigned and rewritten letters, that are simplified and personalised help taxpayers to be compliant and make them pay sooner compared than the original letters. Clear messages and relevant calls to action make it easier to pay and contributes to improved tax compliance levels. Behavioural insights continue to inspire the Belgian compliance strategy. A dedicated unit on Tax Compliance and Behavioral Insights was set up to study taxpayer behaviour and build connection and trust.
Trust & Compliance
