An Analysis of Individual Tax Morale for Russia: Before and After Flat Tax Reform

Yew, Bee K.; Milanov, Valentin; McGee, Robert W.

doi:10.5539/ibr.v8n1p60

Cited by 11 publications

(21 citation statements)

References 51 publications

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“…This effect may be weaker for transition economies, such as Latvia, as an age effect overlaps with generational effects-older respondents are more likely to retain attitudes learned under the Soviet period (Ireland et al 2008;Estrin and Mickiewicz 2011). We include education as in earlier studies; however, the direction of the effect has been found to be either positive (Frey and Torgler 2007;Marien and Hooghe 2011;Yew et al 2015), ambiguous (Alm et al 2006) Respondents' ethnicity is included as a control as it may influence tax morale in Latvia due to the historical factors that formed the present day large Russian ethnic minority as described earlier. Due to this history, the Russian minority may have a different relationship with the Latvian state than ethnic Latvians, leading to lower tax morale.…”

Section: Methods Datamentioning

confidence: 99%

“…In empirical studies, self-employed and business owners have been found to have lower tax morale than other individuals (Alm et al 2010;Lago-Peñas and Lago-Peñas 2010;Torgler 2003bTorgler , d, 2012Yew et al 2015). While these studies have shown that there are differences between the employed and self-employed, the data used in these studies on business owners and managers are limited and prevent greater focus on these individuals and the circumstances of their businesses.…”

Section: Introductionmentioning

confidence: 92%

“…Though our study has been conducted almost twenty years after transition started in Latvia, and tax administration in the Baltic republics improved much faster than in the rest of the former Soviet Union (Yew et al 2015), it is likely that some of those phenomena may still have an impact. Moreover, it is not the actual effectiveness of the tax administration, but perceptions of its effectiveness that matter, as well as any additional significant lag in the latter adjusting to the change in the former.…”

Section: The Transition Context and The Regulatory Perspectivementioning

confidence: 99%

“…First, we aim to fill one particular gap in this literature where studies focusing on firms are still scarce (Alm and McClellan 2012) by empirically exploring potential determinants of the tax morale of business owner/managers. Much of the literature considers either tax morale or income tax evasion (a) by individuals (recent examples: McGee et al 2015;Yew et al 2015;Wei and McGee 2015;McGee et al 2016) or (b) by large corporations (recent example: Jones and Temouri 2016). Yet most of the business activity falls between these two, in small-and medium-sized firms-on which we focus.…”

Section: Introductionmentioning

confidence: 99%

“…Latvia, being a transition country with a multi-ethnic make-up, provides an environment with great institutional heterogeneity on the institutional variables. Our choice to draw on the data from a transition country is informed by the proposition that such countries are a good fit for analysing the impact of the environment on tax morale (Torgler 2003d;Alm et al 2006;McGee et al 2015;Yew et al 2015;Preobragenskaya and McGee 2016). Latvia has undergone huge institutional changes in the last 25 years, transitioning from a command economy when it was part of the Soviet Union, back to independence with a market economy and now becoming integrated into the European Union.…”

Section: Introductionmentioning

confidence: 99%

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To Pay or Not to Pay? Business Owners’ Tax Morale: Testing a Neo-Institutional Framework in a Transition Environment

2017

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In order to understand how the environment influences business owner/managers' attitudes towards tax morale, we build a theoretical model based on a neo-institutionalist framework. Our model combines three complementary perspectives on institutions-normative, cultural-cognitive and regulatory-instrumental. This enables a broader understanding of factors that influence business owner-managers' attitudes towards tax evasion. We test the resulting hypotheses using regression analysis on survey data on business owner/managers in Latvia-a transition country, which has undergone massive institutional changes since it was part of the Soviet Union over 25 years ago. We find that legitimacy of the tax authorities and the government (normative dimension), feeling of belonging to the nation (cultural-cognitive dimension) and perceptions of the risk and severity of punishment (regulatory-instrumental dimension) are all associated with higher tax morale for business owners and managers.

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Section: Methods Datamentioning

confidence: 99%

Section: Introductionmentioning

confidence: 92%

Section: The Transition Context and The Regulatory Perspectivementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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To Pay or Not to Pay? Business Owners’ Tax Morale: Testing a Neo-Institutional Framework in a Transition Environment

2017

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Voluntary and enforced tax compliance determinants and impact among agrochemical businesses in Ghana

Kumi¹,

Bannor²,

Oppong-Kyeremeh³

et al. 2023

AGJSR

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PurposeThis paper examined tax compliance and its impact on agrochemical traders in Ghana.Design/methodology/approachBased on the registered agrochemical lists obtained from the Plant Protection and Regulatory Service Department, 92 agrochemical traders were sampled for data collection. Probit regression was used to estimate determinants of tax compliance, whereas the Inverse Probability Weighted Regression Adjustment Model was employed to evaluate the impact of tax compliance on business performance.FindingsThe results revealed that age and gender relate positively to enforced tax compliance, while education positively impacts voluntary tax compliance. Nonetheless, tax rate, trust and monthly sales positively affect voluntary tax compliance but negatively impact enforced tax compliance. Inversely, while authorities’ power negatively impacted voluntary compliance, it positively influenced enforced tax compliance confirming the Slippery Slope Framework.Originality/valueTo the best knowledge of the authors, this paper is the first to investigate tax compliance determinants and impact among agrochemical traders, despite the tremendous growth of the agrochemical sub-sector in Africa and Ghana. Therefore, this study makes a modest contribution to empirical studies that validate the Slippery Slope Framework in promoting tax compliance in the agricultural and agribusiness sectors of a developing country. Similarly, it also unearths the impact of tax compliance on agribusiness growth which has yet to be highlighted in the extant literature.

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Job performance, knowledge and perceived power of tax officers on tax morale amongst agrochemical traders in Ghana

Kumi

Bannor

2023

AGJSR

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PurposeThe paper aims to examine agrochemical traders’ tax morale in three Ghanaian regions.Design/methodology/approachPrimary data were collected from 92 respondents using structured questionnaires. A multistage sampling technique was employed and used in selecting respondents.. Descriptive statistics, factor analysis and quantile regression analysis were used to analyse data obtained via the questionnaires.FindingsThe study found tax reporting knowledge, tax calculating knowledge and tax payment knowledge to be the keen factors influencing agrochemical traders’ tax knowledge. It was also revealed that age, religion and marriage positively influence the tax morale of traders. Inversely, gender, high level of education and monthly sales were found to affect tax morale negatively. Moreover, trust (respect, trustworthiness and expertise knowledge) negatively influenced tax morale. Authorities’ tax knowledge and power (sanction and lockdown) were revealed to impact tax morale positively. However, tax morale decreases amongst agrochemical traders with higher tax morale when sanction increases.Originality/valueUnlike previous studies which focussed on tax morale amongst individuals and firms outside the agribusiness sector, this study examined the tax morale within the informal agrochemical trading sector, which has recently attracted colossal patronage due to the high usage of agrochemicals amongst farmers in Africa and Ghana. This study also assumed tax morale to be at different levels; hence the factors that affect the morale at different levels differ. Therefore, the study examined the factors influencing tax morale amongst agrochemical traders by segregating tax morale into quartiles. Relating to theory, the economic deterrence theory was used to ground the study, which is not usually used in most tax morale studies.

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An Analysis of Individual Tax Morale for Russia: Before and After Flat Tax Reform

Cited by 11 publications

References 51 publications

To Pay or Not to Pay? Business Owners’ Tax Morale: Testing a Neo-Institutional Framework in a Transition Environment

To Pay or Not to Pay? Business Owners’ Tax Morale: Testing a Neo-Institutional Framework in a Transition Environment

Voluntary and enforced tax compliance determinants and impact among agrochemical businesses in Ghana

Job performance, knowledge and perceived power of tax officers on tax morale amongst agrochemical traders in Ghana

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