The effect of personality traits and tax morale on tax evasion intention

Purpose - This paper aims to explore the relationship among personality traits, tax morale and tax evasion intention of students. Using the five-factor model of personality ratings, this study hypothesizes that agreeableness, openness to experience, conscientiousness, extraversion and neuroticism are good predictors of both tax morale and tax evasion intentions of individuals. Further, this paper argues that tax morale correlates negatively with tax evasion intention. Design/methodology/approach - A survey method was adopted and questionnaires were developed to elicit responses for the study. The study hypotheses were tested structurally using the partial least square-structural equation modelling technique. Findings - The results of the study demonstrate the existence of a positive and statistically significant relationship between three dimensions of the personality traits (agreeableness, conscientiousness and openness to experience) and tax morale. Consistent with the expectation, the study also finds tax morale to be significant and negatively associated with tax evasion intention. Research limitations/implications - This study concludes from the findings that improving the tax morale of individuals could be an important way by which tax authorities can improve voluntary tax compliance and reduce the incidence of tax evasion by individuals. Originality/value - The study uses all the dimensions of the five-factor model to examine the tax evasion intention of individuals. It also contributes to the theoretical literature by highlighting the mediating role of tax morale in the relationship between personality traits and tax evasion intention from an African perspective.