The purpose of this task is to analyse the associations between the individual, economic and social factors previously studied with the accuracy of reported income records (IRS) from the last 5 years. Task2 examined the relationships of these factors with tax morale and the most recent official data on tax evasion. This task has the objective to find patterns in income returns (e.g., deductions, taxable income, penalties) that can be predicted from the several factors listed above. We expect to identify the variables that influence the accuracy of income returns throughout time.

We plan this task for the period of IRS returns and will be executed in the Lisbon area only. We will recruit individuals at their local financial offices or online (n=500) and ask for their participation in filling the same questionnaire as described in Task 2. Confidentiality will be guaranteed and informed the purpose of the study as academic only. After filling the questionnaire, participants will be asked their permission to allow us access to their IRS records of the last 5 years. For each participant past records, there will be analysed the patterns in income returns (e.g., deductions, taxable income, penalties) and related to the variables collected in the questionnaire. This procedure was adapted from Elffers et al (1987).