[{"doi":"10.2139/ssrn.5378466","title":"Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice ","author":[{"first_name":"Kay","full_name":"Blaufus, Kay","last_name":"Blaufus"},{"first_name":"Ralf","last_name":"Maiterth","full_name":"Maiterth, Ralf"},{"first_name":"Michael","last_name":"Milde","full_name":"Milde, Michael"},{"first_name":"Caren","orcid":" 0000-0002-8183-5901","last_name":"Sureth-Sloane","id":"530","full_name":"Sureth-Sloane, Caren"}],"date_created":"2025-10-01T09:26:32Z","date_updated":"2025-10-01T09:29:57Z","page":"107","citation":{"short":"K. Blaufus, R. Maiterth, M. Milde, C. Sureth-Sloane, Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice , 2025.","mla":"Blaufus, Kay, et al. <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. 2025, doi:<a href=\"https://doi.org/10.2139/ssrn.5378466\">10.2139/ssrn.5378466</a>.","bibtex":"@book{Blaufus_Maiterth_Milde_Sureth-Sloane_2025, series={TRR 266 Accounting for Transparency Working Paper Series No. 203}, title={Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice }, DOI={<a href=\"https://doi.org/10.2139/ssrn.5378466\">10.2139/ssrn.5378466</a>}, author={Blaufus, Kay and Maiterth, Ralf and Milde, Michael and Sureth-Sloane, Caren}, year={2025}, collection={TRR 266 Accounting for Transparency Working Paper Series No. 203} }","apa":"Blaufus, K., Maiterth, R., Milde, M., &#38; Sureth-Sloane, C. (2025). <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. <a href=\"https://doi.org/10.2139/ssrn.5378466\">https://doi.org/10.2139/ssrn.5378466</a>","chicago":"Blaufus, Kay, Ralf Maiterth, Michael Milde, and Caren Sureth-Sloane. <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. TRR 266 Accounting for Transparency Working Paper Series No. 203, 2025. <a href=\"https://doi.org/10.2139/ssrn.5378466\">https://doi.org/10.2139/ssrn.5378466</a>.","ieee":"K. Blaufus, R. Maiterth, M. Milde, and C. Sureth-Sloane, <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>. 2025.","ama":"Blaufus K, Maiterth R, Milde M, Sureth-Sloane C. <i>Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax Regime Choice </i>.; 2025. doi:<a href=\"https://doi.org/10.2139/ssrn.5378466\">10.2139/ssrn.5378466</a>"},"jel":["H25","D91","D22"],"year":"2025","publication_status":"published","language":[{"iso":"eng"}],"keyword":["Check-the-box","Legal Form","Tax Complexity","Tax Misperception","Behavioral Taxation","Tax Advice"],"department":[{"_id":"187"}],"series_title":"TRR 266 Accounting for Transparency Working Paper Series No. 203","user_id":"97894","_id":"61491","status":"public","abstract":[{"lang":"eng","text":"We examine behavioral frictions in entrepreneurs’ tax planning when choosing between corporate and partnership taxation under a check-the-box rule. Using German tax return data, we show that only a small fraction of entrepreneurs opt for corporate taxation, despite substantial potential tax savings. A pre registered incentivized online experiment demonstrates that complexity aversion, status quo bias, and misperception about the corporate tax burden—arising from the interaction of corporate and deferred dividend taxation—help explain the preference for partnership taxation. We further find that these behavioral frictions heighten liquidity risk under the corporate system, particularly in the face of unexpected cash flow needs. Finally, a survey of German tax advisors indicates that tax advice only partially mitigates these frictions. Some advisors misperceive the benefits of corporate taxation, while others anticipate client biases and therefore refrain from recommending the corporate tax system."}],"type":"working_paper"},{"quality_controlled":"1","publication_status":"published","issue":"1-2","year":"2022","page":"112-155","intvolume":"        78","jel":["C92","M40","H20","H25","H83"],"citation":{"ama":"Eberhartinger E, Speitmann R, Sureth-Sloane C, Wu Y. How Does Trust Affect Concessionary Behavior in Tax Bargaining? <i>FinanzArchiv / European Journal of Public Finance</i>. 2022;78(1-2):112-155.","ieee":"E. Eberhartinger, R. Speitmann, C. Sureth-Sloane, and Y. Wu, “How Does Trust Affect Concessionary Behavior in Tax Bargaining?,” <i>FinanzArchiv / European Journal of Public Finance</i>, vol. 78, no. 1–2, pp. 112–155, 2022.","chicago":"Eberhartinger, Eva, Raffael Speitmann, Caren Sureth-Sloane, and Yuchen Wu. “How Does Trust Affect Concessionary Behavior in Tax Bargaining?” <i>FinanzArchiv / European Journal of Public Finance</i> 78, no. 1–2 (2022): 112–55.","short":"E. Eberhartinger, R. Speitmann, C. Sureth-Sloane, Y. Wu, FinanzArchiv / European Journal of Public Finance 78 (2022) 112–155.","bibtex":"@article{Eberhartinger_Speitmann_Sureth-Sloane_Wu_2022, title={How Does Trust Affect Concessionary Behavior in Tax Bargaining?}, volume={78}, number={1–2}, journal={FinanzArchiv / European Journal of Public Finance}, author={Eberhartinger, Eva and Speitmann, Raffael and Sureth-Sloane, Caren and Wu, Yuchen}, year={2022}, pages={112–155} }","mla":"Eberhartinger, Eva, et al. “How Does Trust Affect Concessionary Behavior in Tax Bargaining?” <i>FinanzArchiv / European Journal of Public Finance</i>, vol. 78, no. 1–2, 2022, pp. 112–55.","apa":"Eberhartinger, E., Speitmann, R., Sureth-Sloane, C., &#38; Wu, Y. (2022). How Does Trust Affect Concessionary Behavior in Tax Bargaining? <i>FinanzArchiv / European Journal of Public Finance</i>, <i>78</i>(1–2), 112–155."},"date_updated":"2026-04-09T07:26:00Z","volume":78,"date_created":"2021-12-20T08:20:42Z","author":[{"first_name":"Eva","last_name":"Eberhartinger","full_name":"Eberhartinger, Eva"},{"last_name":"Speitmann","full_name":"Speitmann, Raffael","first_name":"Raffael"},{"id":"530","full_name":"Sureth-Sloane, Caren","last_name":"Sureth-Sloane","orcid":" 0000-0002-8183-5901","first_name":"Caren"},{"last_name":"Wu","full_name":"Wu, Yuchen","first_name":"Yuchen"}],"title":"How Does Trust Affect Concessionary Behavior in Tax Bargaining?","publication":"FinanzArchiv / European Journal of Public Finance","type":"journal_article","abstract":[{"lang":"eng","text":"We study the bargaining behavior between auditor and auditee in a tax setting and scrutinize\r\nthe effect of interpersonal trust and trust in government on both parties’ concessions.\r\nWe find evidence that both kinds of trust affect the concessionary behavior, albeit\r\nin different ways. While trust in government affects concessionary behavior in line with\r\nintuitive predictions, we find that interpersonal trust only affects tax auditors. For high\r\ninterpersonal trust, the alleviating effect of high trust in government on tax auditors’\r\nconcessions is less pronounced. Our findings help tax authorities to shape programs to\r\nenhance compliance in an atmosphere of trust."}],"status":"public","_id":"29048","department":[{"_id":"187"}],"user_id":"96670","keyword":["Behavioral Taxation","Concessionary Behavior","Interpersonal Trust","Tax Audit","Trust in Government"],"language":[{"iso":"eng"}]}]