# Figure VI: Event Study of Compliance After First Information Report

<!-- Start of picture text --> A: Self-Employed<br>A1: Report by Supplier A2: Report by Client A3: Report by State A4: Report by Credit/Debit Card<br>[Sales DD=.17 (.01)] [Sales DD=.18 (.01)] [Sales DD=.17 (.01)] [Tax Collected DD=.12 (.01)]<br>[Costs DD=.14 (.01)] [Costs DD=.21 (.01)] [Costs DD=.15 (.01)] [Input Credit DD=.09 (.01)]<br>Liability DD=.25 (.02)<br>Income DD=.26 (.01) Income DD=.09 (.01) Income DD=.21 (.01) VA Rate DD=.14 (.01)<br>Profit Rate DD=.15 (.01) Profit Rate DD=-.03 (.01) Profit Rate DD=.07 (.01)<br>-4 -3 -2 -1 0 1 2 3 -4 -3 -2 -1 0 1 2 3 -4 -3 -2 -1 0 1 2 3 -5 -4 -3 -2 -1 0 1 2 3 4 5<br>Event Time Event Time Event Time Event Time<br>Control Group Event Group Control Group Event Group Control Group Event Group Control Group Event Group<br>6927 event group firms, 40266 control firms. 21922 event group firms, 73177 control firms. 3360 event group firms, 206071 control firms. 4257 event group firms, 1089915 control firms.<br>B: Corporations<br>B1: Report by Supplier B2: Report by Client B3: Report by State B4: Report by Credit/Debit Card<br>[Sales DD=.3 (.03)] [Sales DD=.55 (.03)] [Sales DD=.14 (.01)] [Tax Collected DD=.19 (.01)]<br>[Costs DD=.28 (.03)] [Costs DD=.570 (.04)] [Costs DD=.14 (.01)] [Input Credit DD=.13 (.01)]<br>Liability DD=.26 (.02)<br>Income DD=.49 (.04) Income DD=.25 (.02) Income DD=.23 (.03) VA Rate DD=.2 (.01)<br>Profit Rate DD=.39 (.03) Profit Rate DD=.08 (.01) Profit Rate DD=.06 (.03)<br>-4 -3 -2 -1 0 1 2 3 -4 -3 -2 -1 0 1 2 3 -4 -3 -2 -1 0 1 2 3 -5 -4 -3 -2 -1 0 1 2 3 4 5<br>Event Time Event Time Event Time Event Time<br>Control Group Event Group Control Group Event Group Control Group Event Group Control Group Event Group<br>4574 event group firms, 38321 control firms. 7620 event group firms, 43705 control firms. 2303 event group firms, 139817 control firms. 4259 event group firms, 1128297 control firms.<br>1.7 1.7 1.7 1.4<br>1.6 1.6 1.6<br>1.3<br>1.5 1.5 1.5<br>1.4 1.4 1.4 1.2<br>1.3 1.3 1.3<br>1.2 1.2 1.2 Change in 1.1<br>1.1 1.1 1.1 1<br>Change in Real Taxable Income 1 Change in Real Taxable Income 1 Change in Real Taxable Income 1<br>.9 .9 .9 .9<br>1.7 1.7 1.7 1.4<br>1.6 1.6 1.6<br>1.3<br>1.5 1.5 1.5<br>1.4 1.4 1.4 1.2<br>1.3 1.3 1.3<br>1.2 1.2 1.2 Change in 1.1<br>1.1 1.1 1.1 1<br>Change in Real Taxable Income 1 Change in Real Taxable Income 1 Change in Real Taxable Income 1<br>.9 .9 .9 .9<br><!-- End of picture text --> Notes: This gure displays event studies for dierent events, as indicated by the panel titles (rst information report led by the relevant reporting agent). The top row (A) is for the self-employed and the bottom row (B) for corporations. Each panel displays the year-on-year change (month-on-month change for credit/debit card reporting) in real reported taxable income (tax liability) for an event group (orange doted line) and an event control group (blue crossed line). The black solid line marks event time 0, when rms in the event group are reported to the tax authorities for the rst time by the reporting agent indicated in the panel title. The control group is reweighted by its propensity score of experiencing the event (cf. section 5.2, especially footnote 39, for details). Each group consists of a balanced panel of rms that can be observed for the entire period displayed. Panels A1-A3 and B1-B3 consider events happening in 2010-2012. Panels A4 and B4 consider events happening in 02/2009-08/2014. The text dispays the dierence-in-dierence coecient from estimating equation 1, for dierent outcomes variables as noted. VA stands for value-added rate.