The influence of cultural tightness–looseness, religiosity, and the institutional environment on tax evasion behaviour: A cross‐country study

Abstract

We examine whether the strength of norms and tolerance for deviations play a role in explaining cross‐country differences in tax evasion (TEVA). We also investigate the effects of religiosity, legal enforcement, voice and accountability, and the stability of political systems on TEVA across 48 countries over the period 1997–2018. Results show that the higher the voice and accountability and the lower the degree of cultural tightness–looseness, the rule of law, and political stability, the higher the degree of TEVA across nations. The results are important for policymakers to assess the likelihood of TEVA from a holistic perspective.

Religiosity, money ethics, materialism, and tax evasion: An exploratory study

“…This suggests that individuals with high levels of intrinsic religiosity tend to avoid unethical actions, including tax evasion. These findings are consistent with previous studies (Ben Othman, 2023;Oktaviani et al, 2019;Singhapakdi et al, 2013) that have highlighted the negative impact of intrinsic religiosity on tax evasion practices. In contrast, the research reveals a significant positive effect of extrinsic religiosity on tax evasion behavior.…”