Tax Behaviour: Assessment of Tax Compliance in European Union Countries

Pukelienė, Violeta; Kažemekaityte, Austeja

doi:10.15388/ekon.2016.2.10123

Cited by 18 publications

(13 citation statements)

References 33 publications

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“…According to Pukeliene and Kažemekaityte (2016), the subject of tax evasion is a strategic priority for the European Union (as indicated in the annual growth survey for the European Union in 2016). However, there is still no strategy for the implementation of national tax compliance policy recommendations based on the determinants of tax evasion.…”

Section: Resultsmentioning

confidence: 99%

A Comparison of Corporate Governance and Tax Avoidance of UK and Japanese Firms

Salhi

Jabr

Jarboui

2020

CER

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The present study was designed to determine the relationship between corporate governance and tax avoidance in an international setting. Financial and governance data sourced from the Datastream database for a sample of Japanese and UK firms between 2012 and 2017 are used. First, we examine the direct effect of several corporate governance mechanisms on tax avoidance. Second, we divide the full sample into two groups (common law and code law legal system) to explore the relationship between law, corporate governance, and tax avoidance. We use both univariate and feasible generalized least square (FGLS) regression methods to examine our hypotheses. This study finds that the board size, independent directors, and the presence of women on boards of directors reduce the likelihood of tax avoidance. However, we find an insignificant association between ownership concentration and tax avoidance. Second, it also finds that firms in countries with higher country-level governance engage in less tax avoidance. The results also suggest that the role of corporate governance is more pronounced for firms operating in common law countries than those in code law countries. This manuscript is one of the few studies that examine the relationship between corporate governance and tax avoidance in an international setting with different legal and institutional environment. This relationship differs across the two countries. This paper clearly identifies implications for research, practice, and society. It documents that when a country implements a good system of governance, which targets improving transparency and accountability, it will lead to less corporate tax avoidance.

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Section: Resultsmentioning

confidence: 99%

A Comparison of Corporate Governance and Tax Avoidance of UK and Japanese Firms

Salhi

Jabr

Jarboui

2020

CER

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“…The "slippery slope" occurs when the power/trust is reduced, leading to a negative effect on tax compliance [4]. Using the power of tax authorities (related to tax legislation and to the support from the population regarding information about misconduct) and trust in tax authorities (tax authorities are interested in the common good), tax compliance may be enforced in the first case (when power of tax authorities is used), and voluntary in the second one (when trust in tax authorities is used) [1,[5][6][7][8]. There are situations when trust is positively related to voluntary tax compliance [9][10][11], and power is marginally significant, but both variables do not have an influence on the enforced tax compliance [9].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The relationship between tax authorities and taxpayers has a significant effect on tax behavior [8]. The trust variable is positively associated with tax compliance [14][15][16] and has an important impact [7,[17][18][19][20][21][22][23].…”

Section: Trust In the Tax Authoritiesmentioning

confidence: 99%

Analysis of the Tax Compliance in the EU: VECM and SEM

2021

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Tax compliance is an important indicator for the proper functioning of the tax authority, influencing the budget revenue level. In this study, a Vector Error Correction Model (VECM) analysis was developed to identify the long-term relationships between the compliance in individual income taxation (taxpayer’s behavior), public trust in politicians (trust in authorities), and rule of law (power of the authorities), using unbalanced panel data for the European Union (EU28) during the 2007–2017 period. The results underline the causality of the long-run relationships between the variables. The results of the VECM analysis underline the need for various support measures for voluntary tax compliance, with the trust variable having an important impact on tax compliance. In addition, a Structural Equation Modeling (SEM) analysis was employed using an improved data set with variables such as the compliance in corporation taxation (taxpayer’s behavior), wastefulness of government spending, and quality of the education system. The results of the SEM analysis underline the positive and significant influences of the variables on tax compliance.

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“…This early work foreshadowed the emerging importance of "behavioral economics" as a tool in understanding individual and group behavior, and it is reflected in a range of related approaches, with roots in the psychology of taxation (Kirchler et al, 2010). In the specific context of tax compliance, tax morale is most obviously linked to "intrinsic motivation" (Pukeliene & Kažemekaityte, 2016).…”

Section: Tax Moralementioning

confidence: 99%

A Study on Critical Factors of Tax Compliance Behaviour among Small and Medium Enterprises in Libya

2021

JIBM

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Tax compliance can be described as the level to which taxpayers obey or fail to obey the rules of taxation of their country. This is an admitted fact that the aim of an effective administration of tax is to enhance the voluntary compliance of tax with the use of all possible approaches that may include penalties as well. The primary purpose of this study is to assess the tax compliance behaviour among small and medium enterprises in Libya. This study provides a cornerstone for those who are looking for the reasons for tax compliance to be low. Therefore, this study examines the determinants of tax compliance and tax compliance behaviour. To achieve the goals of this study, a questionnaire survey was administered. Multiple regressions were used to test the formulated hypotheses. The results of this study show how the behaviour of tax compliance can be influenced by poor awareness, unfair taxes, low morale, strict authorities, tax rate and tax penalties. In relation to the practical and theoretical contributions, so far, to the best of the researcher’s knowledge, no scientific research has been done on this. This research would assist politicians, tax officials and the government of Libya in researching this phenomenon. Keywords: Tax compliance, Tax compliance behaviour, Determinants of tax, Tax knowledge, Tax penalty

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Tax Behaviour: Assessment of Tax Compliance in European Union Countries

Cited by 18 publications

References 33 publications

A Comparison of Corporate Governance and Tax Avoidance of UK and Japanese Firms

A Comparison of Corporate Governance and Tax Avoidance of UK and Japanese Firms

Analysis of the Tax Compliance in the EU: VECM and SEM

A Study on Critical Factors of Tax Compliance Behaviour among Small and Medium Enterprises in Libya

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