Understanding tax payment behaviour in the West African Economic and Monetary Union: The role of perceived detection capacity and honesty

Abstract

The analysis of the key factors influencing the perception of tax compliance in WAEMU countries is the primary goal of this study. In particular, the study examines how intrinsic factors, such as honesty and the perception of the tax administration's capacity to detect fraud, affect perceptions of tax compliance in the WAEMU. Ordered probit regression was used to examine Afrobarometer data. According to the findings, honest citizens are more likely to be compliant, whereas a lack of good detection skills is negatively correlated with the perception of tax compliance. The results also reveal cross‐country differences driven by the levels of institutional trust, corruption and democracy.