scholarly journals Ethical Perception of Tax Evasion: Determinants and Consequences on Voluntary Tax Compliance

2021 ◽  
Vol 23 (1) ◽  
pp. 1-14
Author(s):  
Arfah Habib Saragih ◽  
I Dewa Nyoman Suartama Putra
Keyword(s):  
Tax Evasion ◽  
Educational Level ◽  
Tax Compliance ◽  
Business Owner ◽  
Ethical Perception

This study investigates the factors of ethical perception of tax evasion. We also investigate the effect of ethical perception on tax compliance. Surveys were conducted with 291 participants consist of student, lecturer, professional, and business owner from various backgrounds and majors. Our analysis shows a negative and significant effect of idealism, tax knowledge toward the ethical perception of tax evasion, a positive and significant impact of relativism toward the ethics perception of tax evasion, and no significant effect of religiosity and educational level toward the ethics perception of tax evasion. We found that ethical perception is a significant predictor of voluntary tax compliance.

Influence of justice, culture and love of money towards ethical perception on tax evasion with gender as moderating variable

2020 ◽  
Vol 23 (1) ◽  
pp. 245-266
Author(s):  
Dodik Ariyanto ◽  
Gusti Ayu Putu Weni Andayani ◽  
I. Gusti Ayu Made Asri Dwija Putri
Keyword(s):  
Tax Evasion ◽  
Latent Variables ◽  
Structural Model ◽  
Tax Compliance ◽  
Measurement Model ◽  
Partial Least Square ◽  
Ethical Perception ◽  
Ethical Perceptions ◽  
Content Type ◽  
Love Of Money

Purpose The purpose of this study is to evaluate the influence of justice, culture and love of money on ethical perceptions about tax evasion. As well as gender will strengthen the influence of justice, culture and love of money on ethical perceptions about tax evasion. Design/methodology/approach The primary data were collected and analyzed using a popular component-based model called partial least square (PLS). PLS consists of two sub-models, measurement model or outer model and structural model or inner model. The measurement model shows how real or observable variables are latent variables to be measured. While the structural model shows the level of estimation between latent or construct variables. Findings The statistical analysis showed that neither the coefficient of gender (moderating variable) nor the interaction between gender and the exogenous variable are significant. Solimun (2010) explained that such moderating variable is called homologizer moderation (potential moderation). Homologizer moderation refers to variable that may potentially become a moderating variable influencing relationship between predictor (exogenous) and dependant variable (endogenous). This variable has no interaction with predictors or can be said to be insignificant on the dependent variable. In this study, gender is a potential moderating variable (homologizer moderation). Gender can potentially become a moderating variable influencing relationship between justice, culture and love of money and ethical perception on tax evasion. Gender does not have interaction with justice, culture and love of money or significant influence toward ethical perception on tax evasion. Originality/value There are very few studies on tax evasion from an ethical point of view so this study is not only important but also interesting because it shows that tax evasion is a classic problem taking place in nearly all countries that apply taxation system; cultural difference results in different views on ethical perceptions on tax evasion (Basri, 2015); this study uses the local wisdom of Balinese people, namely, Tri Hita Karana and thus, this study becomes relatively new; justice is one of the non-economic variables of tax compliance behavior (Darmawan, 2012), so that the researcher is interested in conducting further research on the effect of justice toward ethical perception on tax evasion; there are very few studies discussing love of money (Hnisz et al., 2013); therefore, research on the effect of love of money toward ethical perception on tax evasion is of necessity and the findings of previous studies that are inconsistent. The researcher predicted that there are contingency factors that influence the relationship between justice, culture and love of money toward ethical perceptions on tax evasion. As suggested by Baridwan (2012), gender, the moderating variable in this study, refers to masculine and feminine character as a dimension of social culture; this study is carried out in the Tax Service Office (KPP Pratama) of Badung Utara because during the 2015 tax year, KPP Pratama Badung Utara was one of the KPPs in Bali DGT Regional Office which experienced a decline in realization of revenues and a sharp decline in growth.

scholarly journals Educational Level and Tax Compliance: Empirical Evidence From Nigeria

2020 ◽  
Vol 10 (1) ◽  
pp. 160
Author(s):  
Stanley Ogoun ◽  
Godspower Anthony Ekpulu
Keyword(s):  
Educational Level ◽  
Government Expenditure ◽  
Tax Compliance ◽  
Tax Revenue ◽  
Education Expenditure ◽  
Government Investment ◽  
Ex Post ◽  
National Priority ◽  
Ex Post Facto ◽  
The Government

The study interrogates the relationship between educational level and tax compliance in Nigeria. The study employs the ex post facto research design to ascertain how government investment in education enhances tax compliance. The study covers 17 years (2002-2018) for both tax revenue (a surrogate for tax compliance) and education expenditure (a surrogate for educational level). From the empirical results, the study concludes that there is a positive nexus between government expenditure on education and tax revenue. The study, therefore, recommends that as a matter of necessity, the government should invest more in the overall educational demand of her citizens not only from tax revenues but from other oil and non-oil sources. The governments, from the federal and state levels, should act as a matter national priority endeavour to meet up with the international budgetary benchmark allocation for education, as recommended by the United Nations Educational, Scientific and Cultural Organization (UNESCO) in its Education for All (EFA) document 2000-2015. This will give Nigerians more access to quality education that would result in moving up the global ranking in HDI with its resultant benefits.

Tax compliance and social desirability bias of taxpayers: experimental evidence from Indonesia

2021 ◽  
pp. 1-18
Author(s):  
Endra Iraman ◽  
Yoshikuni Ono ◽  
Makoto Kakinaka
Keyword(s):  
Experimental Evidence ◽  
Social Desirability ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Computer Assisted ◽  
Social Desirability Bias ◽  
Lower Income ◽  
Tax Returns ◽  
List Experiment ◽  
Experiment Technique

Abstract Identifying taxpayers who engage in noncompliant behaviour is crucial for tax authorities to determine appropriate taxation schemes. However, because taxpayers have an incentive to conceal their true income, it is difficult for tax authorities to uncover such behaviour (social desirability bias). Our study mitigates the bias in responses to sensitive questions by employing the list experiment technique, which allows us to identify the characteristics of taxpayers who engage in tax evasion. Using a dataset obtained from a tax office in Jakarta, Indonesia, we conducted a computer-assisted telephone interviewing survey in 2019. Our results revealed that 13% of the taxpayers, old, male, corporate employees, and members of a certain ethnic group had reported lower income than their true income on their tax returns. These findings suggest that our research design can be a useful tool for understanding tax evasion and for developing effective taxation schemes that promote tax compliance.

scholarly journals Hubungan antara Religiusitas dan Machiavellian dengan Tax Evasion: Riset Berdasarkan Perspektif Gender

Telaah Bisnis ◽  
2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Dekeng Setyo Budiarto ◽  
. Yennisa ◽  
Fitri Nurmalisa
Keyword(s):  
Significant Influence ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Private University ◽  
The World ◽  
The Government ◽  
Special Region

Abstract Tax compliance has long been an issue for governments throughout the world and there is a large and rich research literatur in this field. This study examines the influence religiosity,and machiavellian on the tax evasion based from gender. The sample of this study are 202 account­ing students from 8 private university of Special Region of Yogyakarta. The results of the study prove that religiosity has significant influence on tax evasion, while machiavellian has no sig­nificant influence on tax evasion. Moreover, there is significant different on tax evasion based from gender. The results are expected for the government to designing policies to prevent tax evasion.

Une typologie des contribuables travailleurs indépendants basée sur les attitudes motivationnelles

2015 ◽  
Vol 55 (1) ◽  
pp. 60-77
Author(s):  
Herbert Schwarzenberger ◽  
Stephan Muehlbacher ◽  
Cécile Bazart ◽  
Lucas Unger ◽  
Erich Kirchler
Keyword(s):  
Cluster Analysis ◽  
High Resistance ◽  
Tax Evasion ◽  
Representative Sample ◽  
Tax Compliance ◽  
Tax Burden ◽  
Negative Attitudes ◽  
Tax System ◽  
Do So

A representative sample of 471 Austrian self-employed taxpayers was investigated and types of taxpayers selected on the basis of their motivational postures were extracted. By means of a cluster analysis four basic clusters of taxpayers were identified. ‘Solidary’ taxpayers pay their taxes because they perceive the tax system as fair. ‘Non-solidary’ taxpayers experience their tax burden as unfair. ‘Critical’ taxpayers feel unfairly treated and show high resistance but do not necessarily react by evading taxes. ‘Strategic’ taxpayers feel fairly treated but still try to reduce their tax burden if they perceive the opportunity to do so. The results show that positive and negative attitudes, respectively, to taxes do not necessarily lead to tax compliance or tax evasion. Cooperative and uncooperative behaviour originates from different motives.

What's in a Name?

2022 ◽  
pp. 228-242
Author(s):  
Larissa Batrancea
Keyword(s):  
Tax Evasion ◽  
Ethnic Diversity ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Factors Influencing ◽  
The Difference ◽  
The Impact ◽  
Complex Matter

The topic of tax behavior always stirs attention among scholars, professionals, national and international authorities, organizations, and citizens alike since it is a complex matter. There are four types of tax behavior acknowledged in the literature, namely voluntary tax compliance, enforced tax compliance, tax avoidance, tax evasion. The complexity of tax behavior stems from the fact that there are a manifold of factors influencing it, from economic to psychological ones. The chapter surveys relevant sources on tax behavior in the quest for eliciting the impact of ethnic diversity on tax compliance. At the same time, the difference between countries are also addressed.

scholarly journals A Socio-Economic Model of Sales Tax Compliance

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 88
Author(s):  
Ahmad Farhan Alshira’h ◽  
Moh’d Alsqour ◽  
Abdalwali Lutfi ◽  
Adi Alsyouf ◽  
Malek Alshirah
Keyword(s):  
Tax Evasion ◽  
Compliance Rate ◽  
Tax Compliance ◽  
Sales Tax ◽  
Annual Reports ◽  
Social Psychological ◽  
The Social ◽  
Compliance Model ◽  
Moderating Role

Tax compliance is an issue that can be traced back to the introduction of taxes, which is the reason such compliance remains a significant topic in the current literature of academia and practice. Prior studies on the topic of tax compliance or non-compliance can be categorized into two, namely economic and social/psychological theories. In a more serious note, tax evasion has remained a key issue among governments all over the globe, with Jordan being no exception. Jordan has undertaken different fiscal measures to increase compliance in the domestic front in the past decades, but based on annual reports, the country is still experiencing a considerable increase in net public debt and fiscal deficit that can be traced back to the increased tax non-compliance rate. This is specifically true in the case of sales tax in Jordan. To compound the matter further, literature concerning the determinants of sales tax compliance as well as other determinants that drive non-compliance is still scarce, with a universal tax compliance model able to explain the issue with clarity still being elusive. Hence, this work proposed the determinants of sales tax compliance in the context of small and medium-sized enterprises (SMEs) in Jordan, extending Fischer’s model of tax compliance, and adding the moderating role of tax knowledge and direct effect of tax service quality. This study proposed a model encapsulating the social, psychological and economic factors to provide insight into the sales tax compliance of Jordanian SMEs.

scholarly journals Personal Income Tax Compliance at the Regional Level: The Role of Persistence, Neighborhood, and Decentralization

2020 ◽  
pp. 016001762094281
Author(s):  
Julio López-Laborda ◽  
Jaime Vallés-Giménez ◽  
Anabel Zárate-Marco
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Fiscal Decentralization ◽  
Tax Compliance ◽  
Personal Income ◽  
Extensive Literature ◽  
Personal Income Tax ◽  
Institutional Variables ◽  
The Public ◽  
The Individual

This article quantifies personal income tax compliance by regions for the first time in Spain and identifies the factors explaining differences in tax compliance between regions, an aspect that has scarcely been analyzed in the literature. To this end, and in addition to the dynamic and spatial components considered by Alm and Yunus, this article considers the variables included in the classical tax evasion model of Allingham and Sandmo, as well as tax morale and political-institutional variables, including those linked to the country’s fiscal decentralization. The results obtained confirm, on one hand, those reached in the very extensive literature studying tax evasion from the individual perspective (including the importance of the dynamic element) and, on the other, the relevance of the spatial component in explaining tax compliance, so that greater or lesser tax compliance is partly explained by factors such as the tax behavior of neighbors or how those neighbors are treated by the public sector.

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