Relationship between tax compliance internationally and selected determinants of tax morale

Riahi‐Belkaoui, Ahmed

doi:10.1016/j.intaccaudtax.2004.09.001

Cited by 159 publications

(130 citation statements)

References 27 publications

(27 reference statements)

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“…The findings remained consistent in this specification as well with trust in the tax department increasing tax morale by about 9 per cent. This finding is consistent with the literature which has argued that individuals are likely to comply with tax laws if they believe expends taxes in a trustworthy manner (Riahi-Belkaoui, 2004;Torgler, 2004;Torgler and Schneider, 2009). Following Torgler (2006), we also include a measure of religiosity; the frequency with which an individual practice their faith.…”

Section: Robustness Checks: Other Measures Of Tax Moralesupporting

confidence: 92%

Asymmetric Information and Tax Morale in Developing Countries

Salim

2017

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.Abstract: Our paper investigates the implications of asymmetric non-tax revenue information for tax morale using micro data from thirty-six African countries. We utilize a model in which agents form their perceptions about the sufficiency of government non-tax revenue for development financing under asymmetric information conditions. We then construct a composite index of information access that generates predictions about these perceptions and tax morale at the household level. Two important predictions emerge: (i) in the presence of asymmetric information, households overestimate the ability of non-tax revenues alone to finance development, which (ii) has significant negative effects on household-level tax morale. Our findings-which are robust across specifications and controls of cross-country fixed differences in tax morale-provide evidence that improvement in government information supply regarding the use of non-tax revenues, beyond annual budget readings and households tax obligations, could significantly enhance tax morale and compliance.

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Section: Robustness Checks: Other Measures Of Tax Moralesupporting

confidence: 92%

Asymmetric Information and Tax Morale in Developing Countries

Salim

2017

SSRN Journal

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“…Firstly, compared to corporate taxpayers, individual taxpayers are inclined to self-complete tax returns rather than engaging a tax agent (Trivedi et al, 2004). Since self assessment systems require a high level of tax knowledge, self completion among less knowledgeable taxpayers could lead to unintentional non-compliance behaviour and could increase tax gaps effects (Mohani, 2001;Riahi-Belkaoui, 2004).…”

Section: Methodsmentioning

confidence: 99%

Factors affecting tax compliance behaviour in self assessment system

Palil¹,

Mustapha²

2011

Afr. J. Bus. Manage.

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This paper attempts to provide results of a study on the importance of tax knowledge in determining tax compliance behavior in self assessment system (SAS) in Malaysia. SAS have become the key tax administrative approach in developed countries including the USA, UK and Australia. This approach emphasizes both the tax payers' responsibility to report their income and to determine their own tax liability. One of the main facilitating factors to achieving these aims is the development of the level of tax knowledge among taxpayers. In addition, the introduction of SAS typically achieves further efficiency gains by means such as, reductions in the requirements to supply the supporting documents and proof of income and deductibles to the tax authority when submitting a tax return. The objective of this study is to investigate how these factors interact in the development of a suitable SAS. The study used recent cases of SAS introduction to explore these interactions -the case of individual self assessment in Malaysia. This commenced in year of assessment 2004 and therefore, has been operational now for seven tax years. Given appropriate time, we argued, to enable an exploration to the extent of which developments of tax knowledge and changes in compliant behavior are visible resulting from this change of tax administrative approach. This study will focus on the level of Malaysian individual taxpayers' knowledge and how tax knowledge levels influence tax compliance behavior in a new SAS. Data were collected through a survey resulting in 1073 responses. Two stages were used to facilitate the analysis. Stage 1, using the t-test and ANOVA, focuses on the characteristics of taxpayers' knowledge including gender, ethnics, educational level and income level. Stage 2 attempts to describe the relationship between tax knowledge and tax compliant using stepwise multiple regressions. In this model, tax knowledge was divided into seven sub-categories namely; taxpayers responsibilities' and rights, knowledge about employment income, dividend and interest, personal relief, child relief, rebates and awareness on offence, penalty and fine. The results of this study suggest to policy makers further on the extent to which tax knowledge is important in a self assessment system and in what ways can it affect compliance. It also provides an indicator for tax administrators of the relative importance of tax knowledge in assisting with the design of tax education programmes, simplifying tax systems and developing understanding of taxpayers' behavior.

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“…Tax audits are measured by (a) taxpayer accounting checks, (b) examination of records and documents, (c) interviews and physical testing, (d) cross-testing with third parties, (e) promising something with the examiner's decision (Suhendra, 2010) Taxpayer awareness Taxpayer awareness is the behavior or attitude of an object which involve assumptions and feelings and a tendency to act on the object (Li et al, 2018). Thus it can be said that the awareness of taxpayers in paying taxes is a taxpayer's behavior in the form of views or feelings involving knowledge, beliefs, and reasoning along with a tendency to act according to the rules given by the system and the tax provisions, (Riahi- Belkaoui, 2004;Muliari & Setiawan, 2011;Christian & Alm, 2014: Castro & Scartascini, 2015. Taxpayers are said to have tax awareness if in accordance with the following: (a) Knowing taxation provisions, (b) Knowing tax functions, (c) Understanding taxation obligations, (d) Understanding tax functions (Muliari & Setiawan, 2011).…”

Section: Tax Auditmentioning

confidence: 99%

Effects of taxpayer compliance with taxpayer consciousness as intervening variable

Lallo¹

2019

ASSRJ

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This study analyzes (1) the effect of tax authorities services on taxpayer awareness; (2) the effect of tax sanctions on taxpayer awareness; (3) the effect of tax audits on taxpayer awareness; (4) the effect of taxpayer awareness on mandatory compliance; (5) the effect of tax authorities services on taxpayer compliance; (6) the effect of sanctions on taxpayer compliance; (7) the effect of tax audits on taxpayer compliance; (8) the role of mediating the awareness of taxpayers in the influence of tax authorities services on taxpayer compliance; (9) the role of mediating the awareness of taxpayers in the effect of tax sanctions on taxpayer compliance; (10) the role of mediating taxpayer awareness in the effect of tax audits on taxpayer compliance. The population of this study is an individual taxpayer who performs free work registered at the North, South and West Makassar Primary Tax Office with 234.104 effective taxpayers still active. The research sample was 100 active taxpayers in the regional office of the directorate general of taxes in South Sulawesi. The sampling technique is purposive sampling. Data were analyzed using the Structural Equation Modeling method with the help of the Smart-PLS 3.0 program. The results of the study show that tax sanctions and tax audits have a direct or indirect effect on taxpayer compliance, while the services of tax authorities do not affect direct or indirect taxpayer compliance. The interesting result in this study is that the service of the tax authorities is not significant towards taxpayer compliance, but the positive influence fully mediates the effect of tax authority's services on taxpayer compliance through taxpayer awareness.

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Relationship between tax compliance internationally and selected determinants of tax morale

Cited by 159 publications

References 27 publications

Asymmetric Information and Tax Morale in Developing Countries

Asymmetric Information and Tax Morale in Developing Countries

Factors affecting tax compliance behaviour in self assessment system

Effects of taxpayer compliance with taxpayer consciousness as intervening variable

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