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The Implications Of Tax Morale On Tax Compliance Behavior

Author

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  • Nichita Ramona-Anca

    (Universitatea Babes-Bolyai, Facultatea de Stiinte Economice si Gestiunea Afacerilor)

  • Batrancea Larissa-Margareta

    (Universitatea Babes-Bolyai, Facultatea de Business)

Abstract

The present paper focuses on the analysis of tax compliance behavior from the tax morale standpoint. We grounded our research on the idea that empirical studies constantly invalidating the assumptions of theoretical models of tax evasion show there are more factors influencing compliance than just the economic ones (e.g., audit probability, fine, tax rate, income). Giving the fact that audit probabilities are generally very low and that tax evasion is not as high as one could expect, tax morale might have to do with the high degrees of tax compliance registered around the world. In a stream of articles on taxation published beginning with the late 60’s, tax morale defined as the intrinsic motivation to comply or “internalised obligation to pay tax” (Braithwaite and Ahmed 2005) has been found to positively relate to tax compliance and negatively relate to shadow economy. This paper attempts to offer a broader view on the influence of tax morale on compliance behavior, covering articles ranging from national and cross-cultural surveys to experimental games. Moreover, the aim of the article is to emphasize the policy implications of tax morale research and the changes governments could make in order to raise the amount of public levies.

Suggested Citation

  • Nichita Ramona-Anca & Batrancea Larissa-Margareta, 2012. "The Implications Of Tax Morale On Tax Compliance Behavior," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 739-744, July.
    • Handle: RePEc:ora:journl:v:1:y:2012:i:1:p:739-744
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    tax morale; tax compliance; shadow economy; corruption index;
    All these keywords.

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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