Taxes and economic behavior: Some interview data on tax evasion in Sweden

Wärneryd, Karl‐Erik; Walerud, Bengt

doi:10.1016/0167-4870(82)90003-4

Cited by 130 publications

(49 citation statements)

References 6 publications

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“…Empirical evidence also shows that the opportunity to evade taxes influences individual tax compliance (e.g., Porcano, 1988;Wärneryd and Walerud, 1982;Wallschutzky, 1984;Weigel, Hessing and Elffers, 1987). Since in most industrialized countries, taxes for the employed are usually withheld from their salaries and wages, whereas self-employed and entrepreneurs pay taxes out of their pocket, based on their own information provided, we hypothesize that the latter show less compliance than the former.…”

Section: Hypothesismentioning

confidence: 99%

“…A substantial body of literature confirms the importance of psychological factors on the decision-outcome with respect to tax evasion, like framing effects (e.g., Chang, Nichols and Schultz, 1987;Kirchler and Maciejovsky, 2001;Robben, Webley Elffers and Hessing, 1990;Schepanski and Shearer, 1995), perceived justice and fairness (e.g., Dornstein, 1987;Kirchler, 1997;Spicer and Becker, 1980;Spicer and Lundstedt, 1976), the importance of attitudinal aspects (e.g., Kirchler, 1999;Lewis, 1979;Vogel, 1974), the role of opportunity (e.g., Clotfelter, 1983;Groenland and van Veldhoven, 1983;Porcano, 1988;Wärneryd and Walerud, 1982;Wallschutzky, 1984;Weigel, Hessing and Elffers, 1987), etc. There are also other studies focussing on legal tax avoidance, indicating that respondents believe that the "ordinary people" have to bear most of the tax burden (Kinsey, 1984) and that they wish to reduce tax-loopholes (Song and Yarbrough, 1978).…”

Section: Tax Avoidance Tax Evasion and Tax Flightmentioning

confidence: 99%

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Everyday representations of tax avoidance, tax evasion, and tax flight: Do legal differences matter?

Kirchler¹,

Maciejovsky²,

Schneider³

2003

Journal of Economic Psychology

148

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From an economic point of view, legal considerations apart, tax avoidance, tax evasion and tax flight have similar effects, namely a reduction of revenue yields, and are based on the same desire to reduce the tax burden. Due to legal differences and moral concerns it is, however, likely that individuals perceive them as different and as unequally fair. Overall, 252 fiscal officers, business students, business lawyers, and entrepreneurs produced spontaneous associations to a scenario either describing tax avoidance, tax evasion, or tax flight, and evaluated them as positive, neutral or negative. The results indicate that everyday representations differ with respect to tax avoidance, tax evasion, and tax flight. Tax evasion was perceived rather negatively, tax flight neutrally, and tax avoidance positively. Although fiscal officers judged all forms of tax reduction least fair, all sub-samples found tax evasion less fair than tax avoidance or tax flight. With regard to knowledge of tax law and fairness perception, differential effects were found: Business lawyers and entrepreneurs judged tax avoidance the fairer the higher their knowledge was. Fiscal officers, on the other hand, found tax evasion especially unfair if their knowledge was high.

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Section: Hypothesismentioning

confidence: 99%

Section: Tax Avoidance Tax Evasion and Tax Flightmentioning

confidence: 99%

Everyday representations of tax avoidance, tax evasion, and tax flight: Do legal differences matter?

Kirchler¹,

Maciejovsky²,

Schneider³

2003

Journal of Economic Psychology

148

View full text Add to dashboard Cite

show abstract

“…The level of perceived risk is ordered, from lowest to highest, as follows: 'no risk', 'low risk', 'average risk', 'high risk'. The independent variables are the very same modalities of the attributes appearing in shown that some of these variables do influence an individual's tendency to evade taxes (Warneryd and Walerud 1982). For instance, a person who is employed part-time may experience greater financial strain and may be more prone to taking the risk of tax evasion (Mason and Calvin 1978) through informal sector participation.…”

Section: Econometric Analysis Of Perceived Risk Of Detectionmentioning

confidence: 99%

Small-Business Participation in the Informal Sector of an Emerging Economy

Sookram

Watson

2008

The Journal of Development Studies

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We investigate the characteristics of the owners of small businesses that participate in the informal sector of an emerging economy and their perception of the risk of detection by tax authorities while doing so. Data are gathered from a survey covering 1027 small businesses in Trinidad and Tobago. Results suggest that small-business owners are motivated to participate in the informal sector when they believe that the risk of detection by the tax authorities is low and that government regulations are burdensome, but there is no evidence that the tax rate itself is an issue. Their perception of the risk of detection by the tax authority is determined largely by the time they spend and the income they earn in the formal sector.

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“…In this study it was hypothesized that these would affect the level of risk of participation since other studies have shown that some of these variables do influence an individual's tendency to evade taxes (Warneryd and Walerud 1982). For instance, a person who is employed part-time may experience greater financial strain and may be more prone to taking the risk of tax evasion (Mason and Calvin 1978) through informal sector participation.…”

Section: Empirical Investigation Of the Perception Of Risk Of Particimentioning

confidence: 99%

Characteristics of households in the informal sector of an emerging economy

2009

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Using the case study of Trinidad and Tobago, we investigate the socio-economic, demographic, and attitudinal characteristics of households that participate in the informal sector of an emerging economy and their perception of the risk of detection by tax authorities while doing so. Data are gathered from a cross-sectional field survey covering 570 households. Results using multinomial logit and ordered probit models suggest that households are motivated to participate in the informal sector when members spend little time in formal sector activity, believe that taxes are too high and their incomes are too low, have dependents to support and believe that the resulting tax evasion will go undetected. Their perception of the risk of detection by the tax authority is determined largely by the income they earn in the formal sector and the extent of government bureaucracy prevailing there. JEL CLASSIFICATION NUMBERS: C25, C51, E26.

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Taxes and economic behavior: Some interview data on tax evasion in Sweden

Cited by 130 publications

References 6 publications

Everyday representations of tax avoidance, tax evasion, and tax flight: Do legal differences matter?

Everyday representations of tax avoidance, tax evasion, and tax flight: Do legal differences matter?

Small-Business Participation in the Informal Sector of an Emerging Economy

Characteristics of households in the informal sector of an emerging economy

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