Beschreibung:
This paper studies the effectiveness of a policy designed to influence the timing decision for payments of owed taxes. Owed taxes arise when the sum of the foregoing tax year’s preliminary tax payments falls short of the total tax liability. In 2009 the Danish tax authority (SKAT) introduced a small interest penalty amounting to a daily price of approximately DKK0.5 (US$0.1) for the median amount of owed taxes. Using administrative tax data, I show that the penalty introduction led to a 50-day advancement of payments