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Feedback Monitoring Tools of the Russian Federal Tax Service
In recent years, the Russian Federal Tax Service has increasingly focused on processing the feedback received from taxpayers through various communication channels. In this paper, we investigate the impact of this feedbacksystem on the effectiveness of tax collection over the regions of the Russian Federation for 2017-2021. Using a unique dataset of feedbacks received and a bunch of control variables with instruments, we show that the spread of of feedback channels resulted in small but significantincrease in tax proceedings. We provide behavioural interpretation for this result: Introduction of feedback systems signals taxpayers that the tax offices have started to pay attention to what people think about their service. This simple signal transforms the relationship between taxpayers and tax administration from that of surveillance and authority to customer relations, which is being reciprocated by the taxpayers and has contributed to the improvement of tax discipline.