As of the tax year 2016, the tax administration in Norway introduced steep penalties of up to USD 6000 for filing tax reports after the deadline. Late filing has traditionally been very common among small businesses, and there are hit the hardest by the new fines. This has  led large incomes for the state, as well as a vast complaints about the fines being unfair. By studying a rich registry dataset, I will investigate whether perceived unfair fines decreases tax compliance and labor market participation rates.

Single authored.