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Can ethics change? Enforcement and its effects on taxpayer compliance

Author

Listed:
  • James Alm

    (Tulane University)

  • Matthias Kasper

    (University of Vienna)

  • Erich Kirchler

    (University of Vienna)

Abstract

‘How does tax enforcement affect taxpayer compliance, especially via its effects on tax morale and taxpayer ethics? In this paper we discuss the role of ethics and tax morale in compliance decisions and the effect of enforcement on these notions. We first discuss the factors that shape tax morale and ethics, using these terms as interchangeable concepts. We then summarize prior research that investigates how enforcement affects tax compliance. Subsequently, we discuss how tax morale and ethics shape behavioral responses to enforcement. Finally, we present administrative strategies to mitigate the negative effects of enforcement on compliance via its effects on tax morale and ethics.

Suggested Citation

  • James Alm & Matthias Kasper & Erich Kirchler, 2022. "Can ethics change? Enforcement and its effects on taxpayer compliance," Working Papers 2209, Tulane University, Department of Economics.
    • Handle: RePEc:tul:wpaper:2209
    as

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    File URL: http://repec.tulane.edu/RePEc/pdf/tul2209.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Tax compliance; general deterrence; specific deterrence; tax morale; ethics;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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