Cooperative Tax Compliance: An analysis on the effects of the Italian regime

This work aims at analyzing the effects of the cooperative tax compliance framework in mitigating tax avoidance. This is accomplished via a comprehensive analysis of the framework and an empirical analysis based on an Italian setting. The first chapter introduces the concept of tax avoidance, its main definitions, measures, and determinants. The second chapter will go through the main sources of the cooperative compliance framework from an international point of view: analyzing the OECD documents in which the concept was officially introduced and different case studies, both from a qualitative and quantitative point of view. The third chapter focuses on the Italian regime, after some mentions about the relationship between taxpayer and tax authority in the Italian system, the cooperative tax compliance regime’s reference and characteristics will be analyzed. Finally, in the fourth chapter, an empirical analysis based on an Italian setting is presented, using a DID approach, this work tries to investigate if the cooperative compliance program is indeed producing the effects for which it has been ideated. Overall, useful insights are provided about the cooperative tax compliance framework and its potential effects for the tax system.