Like most nations, Taiwan loses tax revenue from shops who only accept cash and don’t provide receipts.
Taiwan fights back with an innovative solution: receipts double as lottery tickets. Every two months, citizens share a prize pool of NT$2-3B, with several top prizes of NT$10M (~US$300K). A coffee shop that doesn’t provide receipts will lose customers to the shop that does.
Rather than simply punishing non-compliance, Taiwan designed a way to incentivize compliance. Sales tax revenue reportedly increased by 75% in the first year.
There’s a lesson here for anyone running a compliance program. Should we spend all of our budget chasing the few who violate our standards? Or perhaps spend some of it on incentivizing the masses who want to do the right thing?
The Ethical Leader 