The Ethics of Tax Evasion: An Islamic Perspective

Jalili, Ali Reza

doi:10.1007/978-1-4614-1287-8_11

Cited by 29 publications

(13 citation statements)

References 29 publications

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“…It does not allow tax evasion as it teaches righteousness and the right people pay their tax to the state. Based on Islam, 'Allah will penalize us if we do not pay to the state' (Jalili, 2012). In Islam, Zakah (tax/rates and paying tax/rates) is the third pillar of faith, which is a compulsory payment for the people to fulfill the criteria for it.…”

Section: Religious Faithmentioning

confidence: 99%

Public policies and tax evasion: evidence from SAARC countries

Islam

Rashid

Hossain

et al. 2020

Heliyon

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In compliance with the socioeconomic theory, the study has strived to investigate the impact of economic and non-economic public policies on tax evasion using panel data of 7 SAARC countries covering the period from 1998 to 2015. The study has applied the ordinary least square with fixed effect and random effect models to analyze the data assembled. The result of the study implies that the higher the degree of economic freedoms, the lower the tax evasion. More specifically, the government policies about property rights, monetary freedom, fiscal freedom and investment freedom have a negative influence on taxpayers' choices of tax evasion while financial freedom result shows a positive effect on tax evasion. Additionally, there is a negative impact of public sector governance and religiosity on tax evasion, which implies the higher the public sector governance and the higher the religious faith amid the people, the lower the degree of tax evasion. The findings of the study are supposed to offer the governments, tax authorities, and research scholars the valuable insights into public policies for reducing the tax evasion to a significant extent.

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Section: Religious Faithmentioning

confidence: 99%

Public policies and tax evasion: evidence from SAARC countries

Islam

Rashid

Hossain

et al. 2020

Heliyon

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“…This is still little that had been done by the government, although Indonesia has religious-based primary and secondary schools amounted to 48,354 Islamic-based schools (Indonesia Central Bureau of Statistics, 2015), not including other religions. The hypothesis of this research is H2: Religious commitment has a significant influence on individual satisfaction H3: Religious commitment has a significant influence on tax morale Jalili (2012) show results where religiosity does not affect tax morale. This is because, in certain countries, religiosity is being seen as ethical or unethical, depending on how the state carries out all or part of the applicable religious law.…”

Section: Individual Satisfaction and Tax Moralementioning

confidence: 99%

Individual Satisfaction and Tax Morale: The Perspective of Different Profession in Indonesia

Tjondro¹

2018

JPAG

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The purpose of this research is to test the dominant factors that affect satisfaction and tax morale from the perspective of tax consultants and contractors in Indonesia. The factors are the religious commitment, trust to the government agency, the democratic system, perception of other taxpayers. The sample of respondents is 60 tax consultants and 78 contractors in Surabaya-Indonesia. Structural Equation Modelling used in this research with Wrap Partial Least Square as a statistical tool. Our result for tax consultants shows satisfaction and democratic system are the dominant factors that affect tax morale. The results from contractors found religious commitment and the democratic system was proven to be the dominant factors that affect tax morale. This study also found that trust in the government agency has not proved to have an impact on tax morale, for both groups. Factor perception of others taxpayers was proven impact on tax morale, but the effect is small, for both groups respondents. Religious commitment also proved as the dominant factor that affects satisfaction of tax consultants.

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“…Yusuf (1971) takes the position that Islam permits evasion in cases where taxes are based on income, or where taxes result in increasing prices, such as is the case with tariffs, sales and value-added taxes. Jalili (2012) takes a somewhat different view, holding that tax evasion is always unethical, but only in countries where Sharia law is practiced. In other cases, tax evasion may be ethical, although he does not go into detail.…”

Section: Literature Reviewmentioning

confidence: 99%

How seriously do taxpayers regard tax evasion? A survey of opinion in England

James

McGee

Benk

et al. 2019

JMLC

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Purpose Numerous studies have been done on various aspects of tax evasion in recent years. Some studies focus on compliance, while others examine more esoteric topics, such as optimum tax evasion. A third group of studies discusses theoretical issues, such as when tax evasion can be justified on moral grounds. A few studies have addressed the relative seriousness of tax evasion compared to other infractions. The purpose of this paper is in the latter category. Design/methodology/approach Wave 6 of the World Values Surveys (2010-2014) asked hundreds of questions to participants in 57 countries. One of those questions asked whether it was justifiable to evade taxes if one had the opportunity to do so. Another question asked whether it was justifiable to pay cash to avoid paying taxes. It also asked questions about other ethical issues such as bribery, avoiding a fare on public transport, claiming government benefits and buying stolen goods. The present study included those questions in a survey that was distributed to 485 students and faculty members at the University of Exeter in England to determine the relative seriousness of each act. They were asked to select a number from 1 (never justifiable) to 10 (always justifiable) to show the extent of their agreement or disagreement with the commission of the six acts. The goal was to determine how serious tax evasion was compared to other acts that might be considered unethical. One-sample t-test and one-way analysis of variance (ANOVA) methods were used for the data analysis. Findings The results of the study show that the act considered least serious was paying cash for services to avoid tax followed in order of seriousness by avoiding a fare on public transport, cheating on taxes if you have a chance, buying stolen goods, claiming benefits without entitlement and, with least justification, accepting a bribe in the course of one’s duty. Some interesting results emerged by examining the responses of different groups. Like other studies, the results indicate older groups tend to have a higher respect for the law than younger ones. This was true for the cheating on taxes possibility, but the 30-49 years age group were more opposed than the other two groups to paying cash for services to avoid taxes. In terms of gender, females were significantly more opposed than males to cheating on taxes if you have a chance. The respondents who are married were more opposed to the six acts, including of course, the two tax ones, than non-married persons. There was also evidence that the level of higher education makes a difference to individuals’ opinions. Originality/value This is an important study in relation to England. It is the first study to do so. The relative seriousness of tax evasion is compared to other offenses. Mean scores are used to rank the various offenses in terms of relative seriousness. Various demographics are also examined to see whether some groups view tax evasion as more serious than other groups. Those demographics included gender, age, academic major, education level and marital status.

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The Ethics of Tax Evasion: An Islamic Perspective

Cited by 29 publications

References 29 publications

Public policies and tax evasion: evidence from SAARC countries

Public policies and tax evasion: evidence from SAARC countries

Individual Satisfaction and Tax Morale: The Perspective of Different Profession in Indonesia

How seriously do taxpayers regard tax evasion? A survey of opinion in England

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