The impact of outcome orientation and justice concerns on tax compliance: The role of taxpayers' identity.

The impact of cybermediaries’ information on Consumer to Consumer (C2C) tax compliance is investigated by using a computational experiment approach and three conclusions are drawn. First, cybermediaries’ information assists tax authorities in selecting audit objects and discovering unregistered taxpayers, and the second signaling role is the main reason for the improvement of the C2C tax compliance rate in the case of low audit probability. Second, the signaling role of cybermediaries’ information is quite limited if the audit probability is low; the increase of the audit probability can directly improve the C2C tax compliance rate as well as indirectly by enhancing the signaling role of cybermediaries’ information; in addition, if the proportion of honest taxpayers is lower than a certain threshold, the lower the proportion is, the lower the signaling role is, ceteris paribus. Finally, the signaling role of cybermediaries’ information on the selection of audit objects rises with the increase of the correlation degree between cybermediaries’ information and taxable income of taxpayers, and a critical value of the correlation degree exists, below which the signaling role of cybermediaries’ information is negative. We also discuss how to enhance the signaling role of cybermediaries’ information to improve the C2C tax compliance rate.

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Perceptional Analysis of Msmes Tax Justice Aspect

International Journal of Social Science and Business ◽

10.23887/ijssb.v4i3.28092 ◽

2020 ◽

Vol 4 (3) ◽

pp. 480

Author(s):

Fransiscus X N Susanto ◽

David A A Pesudo ◽

Michael Victor Warouw

Keyword(s):

Qualitative Method ◽

Tax Compliance ◽

Tax Rates ◽

Tax Rate ◽

Business Units ◽

Descriptive Approach ◽

Convenience Sampling ◽

The Impact ◽

Depth Interviews

This study aims to identify how the role of tax justice for taxpayer of Small and Medium sized enterprises (SMEs) will affect the level of compliance with paying taxes. The results of this study are also useful for Direktorat Jendral Pajak to identify how SMEs react to these policies so that they can represent the condition of their business in their obligation to pay taxes. This study used a qualitative method with a descriptive approach through questionnaires and in-depth interviews with respondents. The population of this study was SMEs assisted by Dinas Koperasi dan UMKM kota Salatiga with 1,656 business units with the method of determining many samples using the slovin formula measurement and with convenience sampling. The impact of the application of PP 23 of 2018 has been felt by taxpayer of SMEs since July 2018, the reduction in tax rates by half a percent of the previous tax rate has been proven to increase tax compliance for taxpayers of SMEs but the application of PP 23 of 2018 does not affect tax compliance for taxpayers of SMEs who have previously obeyed and taxpayer of SMEs with the motive to pay certain taxes.

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The Relationship between Gender, Tax Burdens, Corruption Practices, and Tax Compliance

Journal of Southwest Jiaotong University ◽

10.35741/issn.0258-2724.55.3.54 ◽

2020 ◽

Vol 55 (3) ◽

Author(s):

Theresia Woro Damayanti ◽

Ronny Prabowo ◽

Usil Sis Sucahyo ◽

Supramono Supramano

Keyword(s):

Negative Impact ◽

Tax Compliance ◽

Mediating Effect ◽

Mediating Role ◽

Top Managers ◽

Research Gap ◽

Using Data ◽

The Impact ◽

The Relationship

The article describes a new idea: the effect of top managers’ gender on tax compliance that is mediated by perceived tax burdens. This study also analyses the impact of perceived tax burdens on tax compliance as moderated by perceived corruption practices. Using data from the World Bank’s survey on 6,533 firms in the Association of Southeast Asian Nations countries and analyzing the data using a multiple regression analysis and Haye’s bootstrapping, the results confirm the mediating effect of perceived tax burdens on the effect of gender on tax compliance. The study also empirically shows that corruption strengthens the negative impact of perceived tax burdens on tax compliance. The contribution of this study is twofold. First, we fill in the research gap on the mediating role of perceived tax burdens and the moderating role of perceived corruption practices in the tax compliance context. Second, this study informs policymakers that they need to balance their gender equality policies with serious efforts to instill awareness on tax obligations and support anti-corruption institutions to prevent and crack down on corruption cases.

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Tax compliance is not fundamentally influenced by incidental emotions: An experiment

10.31234/osf.io/ra6ms ◽

2020 ◽

Author(s):

Janina Enachescu ◽

Žiga Puklavec ◽

Jerome Olsen ◽

Erich Kirchler

Keyword(s):

Electrodermal Activity ◽

Tax Compliance ◽

Emotional Valence ◽

Manipulation Check ◽

Emotion Induction ◽

Video Clips ◽

Compliance Behavior ◽

Compliance Decisions ◽

The Impact

The present study investigates the impact of incidental emotions on tax compliance behavior in an experimental setting. Different theories are divided about how experiencing incidental emotions should influence tax decisions and the few existing studies yield inconsistent results. Our aim was to investigate differences between three specific emotions, namely anger, fear, and happiness. This allowed a comparison in compliance behavior as a function of differences in emotional valence as well as in specific emotional qualities. For this purpose, a sample of 264 individuals participated in a tax experiment. After a baseline treatment, one of the three emotions was induced using video-clips with background music. Moreover, emotional arousal was assessed by measuring electrodermal activity. Manipulation check items as well as elevated arousal levels after the emotion induction provided support for a successful emotion induction. Nevertheless, we did not observe any tax compliance differences between the anger, fear, and happiness conditions. Our results speak against a fundamental role of incidental emotions for tax compliance decisions.

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The impact of changes in audits and penalties on tax compliance behaviour: evidence from South Africa

Southern African Business Review ◽

10.25159/1998-8125/4824 ◽

2020 ◽

Vol 24 ◽

Author(s):

Chengetai Dare

Keyword(s):

South Africa ◽

Tax Compliance ◽

Joint Effect ◽

Careful Consideration ◽

Tax Revenue ◽

Developed Country ◽

Integral Role ◽

The Government ◽

The Impact

Tax revenue is a major source of public revenue in South Africa, and it plays an integral role in creating the fiscal space to provide public services and infrastructural development. Tax collection is however impeded by evasion. In its 2014 interim report, the Davis Tax Committee (a tax review committee appointed by the government to inquire into the role of South Africa’s tax system) suggested that South Africa loses a substantial amount of revenue through evasion. To enhance compliance, the government has made several changes to existing tax penalty structures, and introduced new ones as well. The question arises whether these deterrence measures effectively reduce evasion. International empirical evidence on the efficacy of such policies is mixed, and mainly drawn from developed country applications. Hence, evidence from developing countries is limited. This study employed a laboratory experiment to examine taxpayers’ behavioural responses to changes in audit and penalty rates in South Africa. Results showed that both audits and penalties influenced salaried and non-salaried taxpayers to increase their compliance levels. However, the effect was higher on non-salaried taxpayers. We also found that audit and penalty rates had a negative joint effect on both salaried and non-salaried compliance rates. The impact was larger on salaried taxpayers. These findings suggest that, although audits and penalties are effective enforcement measures, the manner in which they are applied must be given careful consideration.

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Intergroup Threat and Outgroup Attitudes

Social Psychology ◽

10.1027/1864-9335/a000127 ◽

2013 ◽

Vol 44 (5) ◽

pp. 311-319 ◽

Cited By ~ 12

Author(s):

Marco Brambilla ◽

David A. Butz

Keyword(s):

Gay Men ◽

Social Group ◽

Welfare Recipients ◽

Intergroup Attitudes ◽

Social Policies ◽

Intergroup Threat ◽

Economic Threat ◽

The Impact ◽

General Climate

Two studies examined the impact of macrolevel symbolic threat on intergroup attitudes. In Study 1 (N = 71), participants exposed to a macrosymbolic threat (vs. nonsymbolic threat and neutral topic) reported less support toward social policies concerning gay men, an outgroup whose stereotypes implies a threat to values, but not toward welfare recipients, a social group whose stereotypes do not imply a threat to values. Study 2 (N = 78) showed that, whereas macrolevel symbolic threat led to less favorable attitudes toward gay men, macroeconomic threat led to less favorable attitudes toward Asians, an outgroup whose stereotypes imply an economic threat. These findings are discussed in terms of their implications for understanding the role of a general climate of threat in shaping intergroup attitudes.

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