---
_id: '61491'
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.
author:
- first_name: Kay
  full_name: Blaufus, Kay
  last_name: Blaufus
- first_name: Ralf
  full_name: Maiterth, Ralf
  last_name: Maiterth
- first_name: Michael
  full_name: Milde, Michael
  last_name: Milde
- first_name: Caren
  full_name: Sureth-Sloane, Caren
  id: '530'
  last_name: Sureth-Sloane
  orcid: ' 0000-0002-8183-5901'
citation:
  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>
  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>
  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}
    }'
  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.
  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>.
  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.
date_created: 2025-10-01T09:26:32Z
date_updated: 2025-10-01T09:29:57Z
department:
- _id: '187'
doi: 10.2139/ssrn.5378466
jel:
- H25
- D91
- D22
keyword:
- Check-the-box
- Legal Form
- Tax Complexity
- Tax Misperception
- Behavioral Taxation
- Tax Advice
language:
- iso: eng
page: '107'
publication_status: published
series_title: TRR 266 Accounting for Transparency Working Paper Series No. 203
status: public
title: 'Choosing the Wrong Box? Behavioral Frictions and Limits of Tax Advice in Tax
  Regime Choice '
type: working_paper
user_id: '97894'
year: '2025'
...
---
_id: '29048'
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."
author:
- first_name: Eva
  full_name: Eberhartinger, Eva
  last_name: Eberhartinger
- first_name: Raffael
  full_name: Speitmann, Raffael
  last_name: Speitmann
- first_name: Caren
  full_name: Sureth-Sloane, Caren
  id: '530'
  last_name: Sureth-Sloane
  orcid: ' 0000-0002-8183-5901'
- first_name: Yuchen
  full_name: Wu, Yuchen
  last_name: Wu
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.
  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.
  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} }'
  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.'
  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.
  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.
  short: E. Eberhartinger, R. Speitmann, C. Sureth-Sloane, Y. Wu, FinanzArchiv / European
    Journal of Public Finance 78 (2022) 112–155.
date_created: 2021-12-20T08:20:42Z
date_updated: 2026-04-09T07:26:00Z
department:
- _id: '187'
intvolume: '        78'
issue: 1-2
jel:
- C92
- M40
- H20
- H25
- H83
keyword:
- Behavioral Taxation
- Concessionary Behavior
- Interpersonal Trust
- Tax Audit
- Trust in Government
language:
- iso: eng
page: 112-155
publication: FinanzArchiv / European Journal of Public Finance
publication_status: published
quality_controlled: '1'
status: public
title: How Does Trust Affect Concessionary Behavior in Tax Bargaining?
type: journal_article
user_id: '96670'
volume: 78
year: '2022'
...