scholarly journals The effects of rewards on tax compliance decisions

2016 ◽  
Vol 52 ◽  
pp. 38-55 ◽  
Author(s):  
Martin Fochmann ◽  
Eike B. Kroll
Keyword(s):  
Tax Compliance ◽  
Compliance Decisions

scholarly journals The Effect of Repeat Tax Amnesty and Tax Penalty Policy on Taxpayer Compliance (An Experimental Study)

2021 ◽  
Vol 8 (10) ◽  
pp. 105-116
Author(s):  
Ni Putu Riasning ◽  
Anak Agung Bagus Amlayasa ◽  
Luh Kade Datrini
Keyword(s):  
Experimental Study ◽  
Hypothesis Testing ◽  
Experimental Research ◽  
Research Output ◽  
Tax Compliance ◽  
University Research ◽  
Accounting Students ◽  
Repeated Application ◽  
Tax Amnesty ◽  
Compliance Decisions

This study aims to (1) examine the effect of repeated tax amnesty knowledge on taxpayer compliance, (2) examine the effect of tax sanctions on taxpayer compliance based on threats to taxpayer compliance decisions, and (3) examine differences in taxpayer compliance based on taxpayer knowledge, on the re-implementation of tax amnesty and the effect of tax sanctions on taxpayer compliance decisions. This study used a 2 x 2 factorial experimental research design between subjects by using 119 participants from accounting students from the Faculty Economic and Busines Warmadewa University. The results showed that both the knowledge of taxpayers on the re-implementation of tax amnesty and the effect of tax sanctions on taxpayer compliance decisions can affect taxpayer compliance. Besides that too, there is an interaction between taxpayer knowledge on the re-implementation of tax amnesty and the effect of tax sanctions on taxpayer compliance decisions where if the taxpayer is in a condition not aware of the repeated application of the tax amnesty, taxpayers who also receive high tax sanctions will show the highest degree of compliance, compared to subjects in other situations. Hypothesis testing using a different test t test with the help of the SPSS 26.0 program. The expected research output is that the results of this research will be published in the proceedings of the Warmadewa of University Research Institute. Keywords: Recurring tax forgiveness, tax sanctions, tax compliance.

An Examination of the Role of Ethics in Tax Compliance Decisions

2005 ◽  
Vol 27 (1) ◽  
pp. 39-72 ◽  
Author(s):  
B. Charlene Henderson ◽  
Steven E. Kaplan
Keyword(s):  
Tax Compliance ◽  
Ethical Beliefs ◽  
Ethical Orientations ◽  
Compliance Behavior ◽  
Proposed Model ◽  
Ethical Evaluations ◽  
Study Support ◽  
Compliance Decisions ◽  
The Relationship

The relationship between ethical beliefs and tax compliance is well documented, but extant research has not explored the relationships among general ethical beliefs, contextual ethical beliefs, and tax compliance behavior. In this study we propose a model that is intended to clarify the mechanisms through which ethical beliefs impact tax compliance. In the model, contextual ethical beliefs represent the mechanism through which individuals' general ethical beliefs impact tax compliance behavior. The model is tested using participants' ethical orientations as measures of their general ethical beliefs and using participants' ethical evaluations of others' tax compliance decisions as measures of their contextual ethical beliefs. Tax compliance behavior is inferred from participants' estimates of the likelihood that they would evade. Overall, the findings from our study support the proposed model. Ethical orientations are directly related to ethical evaluations; ethical evaluations directly predict tax compliance behavior; and finally, ethical orientations are indirectly related to tax compliance behavior. That is, ethical orientations influence tax compliance behavior, but only through their influence on ethical evaluations. We believe that the proposed model provides an important contribution by providing a framework that outlines the routes through which ethical beliefs impact tax compliance.

scholarly journals Experimental Study on Individual Taxpayer: Motivational Posture and Peer Reporting Behavior

2017 ◽  
Vol 8 (1) ◽  
Author(s):  
Elen Puspitasari ◽  
Yeye Susilowati ◽  
Wahyu Meiranto
Keyword(s):  
Experimental Study ◽  
Tax Compliance ◽  
Analysis Of Covariance ◽  
Peer Reporting ◽  
Reporting Behavior ◽  
Assignment Method ◽  
Compliance Decisions ◽  
Independent Variable ◽  
The Government ◽  
Tax Reporting

the effect of motivational postures and tax reporting behavior of one’s peers on taxpayer com-pliance was examined in this experimental study. This experimental research was conducted under the circumstances arranged and direct manipulation on taxpayer external factor, namely the independent variable is peer reporting behavior, so it can be determined causality effect of the independent variable on the dependent. The respondent is 81 taxpayers whose run the small business. A motivational posture was measured by using 29 statements developed by Braithwaite. Analysis of Covariance is used because this research conducting Quasi Experimen-tal Design Between-Subject with Covariate with random assignment method. Peer reporting behavior as an experimental variable consists of two level treatments. The result shows that the posture of motivation Indonesian taxpayers’ as a concomitant factor does not affect tax compli-ance decisions. Furthermore, this study provides evidence that peer reporting behavior were significant factors in explaining the experimental reporting decision. The findings of this study are expected to provide discourse to the government to improve tax compliance decisions in Indonesia in terms of posture motivation and peer reporting behavior among taxpayers.

scholarly journals Information processing in tax decisions: A MouselabWEB study on the Allingham and Sandmo model of income tax evasion

2020 ◽  
Author(s):  
Christoph Kogler ◽  
Jerome Olsen ◽  
Martin Müller ◽  
Erich Kirchler
Keyword(s):  
Tax Evasion ◽  
Information Acquisition ◽  
Income Tax ◽  
Tax Compliance ◽  
Relevant Information ◽  
Expected Value ◽  
Decision Under Uncertainty ◽  
Tax Rate ◽  
Compliance Decisions ◽  
Expected Values

The highly influential Allingham and Sandmo model of income tax evasion framed the decision whether to comply or to evade taxes as a decision under uncertainty, assuming that taxpayers are driven by utility-maximization. Accordingly, they should choose evasion over compliance if it yields a higher expected profit. We test the main assumptions of this model considering both compliance decisions and the process of information acquisition applying MouselabWEB. In an incentivized experiment, 109 participants made 24 compliance decisions with varying information presented for four within-subject factors (income, tax rate, audit probability, and fine level). Additional explicit expected value information was manipulated between-subjects. The results reveal that participants attended to all relevant information, a prerequisite for expected value like calculations. As predicted by the Allingham and Sandmo model, choices were clearly influenced by deterrence parameters. Against the assumptions, these parameters were not integrated adequately, as evasion did not increase with rising expected rate of return. More transitions between information necessary for calculating expected values did not result in higher model conformity, just as presenting explicit information on expected values. We conclude that deterrence information clearly influences tax compliance decisions in our setting, but observed deviations from the model can be attributed to failure to integrate all relevant parameters.

Are Tax Amnesties Good for Us All? Understanding Influence of Tax Amnesties on Benefiters and Non-Benefiters

2020 ◽  
Vol 66 (3) ◽  
pp. 285-300
Author(s):  
Recep Yücedoğru ◽  
İdris Sarisoy
Keyword(s):  
Structural Model ◽  
Tax Compliance ◽  
Risk Awareness ◽  
Debt Restructuring ◽  
Fairness Perception ◽  
Fairness Perceptions ◽  
Tax Amnesty ◽  
Compliance Decisions ◽  
Good For ◽  
The Difference

Abstract This article aims to investigate the effect of tax amnesties on tax compliance decisions of taxpayers. In particular, we focused on Turkish taxpayers’ fairness perceptions and their voluntary tax compliance after the recent legislation of 6736, which is claimed to be the biggest tax amnesty (for example, tax debt restructuring legislation) in the last decade. This article also investigates the difference between tax amnesty benefiters and non-benefiters when it comes to their tax compliance and fairness perceptions. This article starts with a summary of the literature with a particular focus on Turkey. The research looks into the influence of the perception of tax amnesties on fairness and tax compliance of taxpayers while controlling for widely discussed factors that influence tax compliance such as risk awareness and government trust. The survey was conducted with 1028 participants and a structural model was constructed to test for the above-mentioned effects. We found fairness perception of the taxpayers is negatively affected by tax amnesties. Additionally, the findings showed that acceptance/approval of taxpayers on tax amnesty practice is effective on taxpayer compliance. Finally, only tax amnesty benefiters’ fairness perception is negatively influenced by tax amnesties while the effect is not significant on benefiters.

Tax compliance decisions

2010 ◽  
pp. 103-151
Author(s):  
Erich Kirchler ◽  
Valerie Braithwaite
Keyword(s):  
Tax Compliance ◽  
Compliance Decisions

Improving Use-Tax Compliance by Decreasing Effort and Increasing Knowledge

2013 ◽  
Vol 11 (1) ◽  
pp. 1-18 ◽  
Author(s):  
Christopher R. Jones ◽  
Yuyun Sejati
Keyword(s):  
Tax Compliance ◽  
Significant Interaction Effect ◽  
Policy Makers ◽  
Academic Literature ◽  
Unexplored Area ◽  
Compliance Decisions ◽  
Use Tax ◽  
Increasing Knowledge ◽  
Feasible Solutions ◽  
The Individual

ABSTRACT We explore two remedies that could help states improve use-tax compliance. The first remedy is designed to reduce the amount of effort an individual must exert to pay the use tax by having the vendor give the individual an option to pay the use tax online. The second remedy focuses on increasing knowledge about the use tax by providing the individual with information about the use tax during the purchasing process. The results from two states, Florida and Illinois, indicate that providing an individual with the option to pay the use tax increases the likelihood that the person will comply with the use-tax law. Providing information about the use tax, however, increases the likelihood of compliance only in Florida. Finally, there is a marginally significant interaction effect between the two remedies in Illinois. This study makes three important contributions. First, this study offers policy makers two concrete and feasible solutions to the use-tax compliance problems for online transactions. Second, this study contributes to the academic literature by expanding the tax compliance literature into a relatively unexplored area. Finally, this study shows how use-tax compliance decisions and the effectiveness of potential remedies may vary from one state to another.

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