Analyzing Factors Affecting Tax Morale Levels in Turkey Using Alternative Ordered Response Models

Abstract

The concept of tax morale is introduced to measure the reason of paying taxes by subjects. The main objective of this paper is twofold. Firstly, the present paper examines potential factors that may influence the degree of tax morale in Turkey. Secondly, the paper aims to determine the best model to explain the determinants of the degree of tax morale by a comparison of alternative ordered response models. For these purposes, a written-questionnaire was administered to 943 subjects in three cities of northern Turkey, namely, Erzurum, Erzincan, and Bayburt. Standard ordered probit (OPROBIT) and alternative ordered response models including generalized ordered logit model (GOLOGIT), partial proportional odds (PPO) model and heteroskedastic ordered logit (HOLOGIT) model were performed to determine the best model fit. Results reveal that marital status, monthly income, and operation time were positively correlated with higher degrees of tax morale. The empirical findings also indicated that higher educated subjects were more likely to have lower degrees of tax morale. Tax amnesty, higher tax load, tax system, tax policies, previous negative experiences, and efficient use of public expenditures were found to have statistically significant impact on the degree of tax morale among subjects.

Türkiye’de Girişimcilik ve Sürdürülebilir Bölgesel Kalkınma: Makine Öğrenmesi Yaklaşımlarından Elde Edilen Bulgular

“…This research is novel in the sense that machine learning models are applied on the GEM data for the first time in Turkey. The findings support the results of the research conducted by Özdemir and Karadeniz (2011) and Karadeniz and Özçam (2018). The contribution of this research to the literature is that it has yields results similar to those of the aforementioned studies and extends them using machine learning.…”

“…The aim of this study is to analyze the factors affecting entrepreneurship activities in Turkey in terms of SD by applying machine learning, which is a relatively new method in social sciences, and using Global Entrepreneurship Monitor (GEM) data. This research analyzes and extends the previous results of Özdemir and Karadeniz (2011) and Karadeniz and Özçam (2018) from individual entrepreneur gains in the Turkish context for the first time through the application of machine learning algorithms.…”

“…According to the results of the Stochastic Gradient Boosting, it is observed that regional development and conditions in Turkey affect the probability of individuals to become entrepreneurs. This research analyzes and extends the previous results of Özdemir and Karadeniz (2011) and Karadeniz and Özçam (2018) from individual entrepreneur gains in the Turkish context for the first time through the application of machine learning algorithms. Entrepreneurial activities should be planned within the framework of policies that support sustainable development.…”

“…Rassal Orman sınıflandırma ağacının kullandığı değişkenlere ek olarak ve daha düşük önem seviyeleri ile hanehalkı geliri ve nüfusu, kişinin çalışma durumu, cinsiyeti, eğitim düzeyi, anket zamanı itibariyle şirket içi girişimcilik aktivitesinde bulunuyor olması veya son üç yılda liderlik seviyesinde olmasa bile bu konuda şirket içerisinde aktif olması girişimciliği etkileyen başlıca faktörler olarak tespit edilmiştir. Türkiye'de makine öğrenmesi ile GEM (2018) verileri kullanılarak yapılan bu araştırma sonuçları Özdemir ve Karadeniz (2011) ve Karadeniz ve Özçam (2018) tarafından yapılan araştırma sonuçları ile karşılaştırıldığında birbirlerini desteklemektedirler. Bu araştırmanın literatüre katkısı makine öğrenmesi kullanarak aynı sonuçlara ulaşmış olmasıdır.…”

The Informal Sector, the “implicit” Social Contract, the Willingness to Pay Taxes and Tax Compliance in Zimbabwe

“…Tax research literature offers thought-provoking strategies to build voluntary compliance amongst taxpayers in the IS. Tax morale has become a topical issue in the study of voluntary tax compliance as researchers often argue that tax morale and tax evasion are inextricably linked (Kaplanoglou & Rapanos, 2015;Luttmer & Singhal, 2014;Schneider & Buehn, 2018;Slemrod & Weber, 2012;Williams, 2019) and that the justification and justifiability (moral acceptability) for tax evasion differs across nations (Özdemir, Çelik, & Kara, 2019). Daude, Gutierrez, and Melguizo (2013), using the Afrobarometer to study tax morale in African economies (Ghana, Kenya, South Africa, Tanzania and Uganda) draws the conclusion that the provision of quality public services has a positive effect on tax morale and lowers the justifiability of tax evasion.…”