Inheritance tax compliance – earmarking with normative value principles

Stark, Jennifer; Kirchler, Erich

doi:10.1108/ijssp-07-2016-0086

Cited by 22 publications

(26 citation statements)

References 50 publications

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“…Findings with this sample do not confirm a relationship between asking for invoices and a taste for gambling, but they concur with prior research that shows that age has a positive effect on tax compliance and tax morale (e.g. Frey and Torgler, 2007;Stark and Kirchler, 2017). Older respondents were more likely to request an invoice out of a sense of civic duty.…”

Section: Discussioncontrasting

confidence: 66%

“Please give me an invoice”: VAT evasion and the Portuguese tax lottery

Wilks

Cruz

Sousa

2019

IJSSP

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Purpose The Portuguese tax authority implemented a lottery to encourage citizens to request invoices as a strategy to fight value-added tax (VAT) evasion. As the law does not require citizens to request sales invoices with the consumers’ tax number, doing so is a form of voluntary cooperation in tracking down tax evaders. The purpose of this paper is to understand why ordinary citizens decide to join forces with tax authorities in the fight against VAT evasion by requesting invoices with their tax identification number. Design/methodology/approach An empirical study was conducted to explore the underlying motivation for Portuguese consumers to request sales invoices with their personal tax identification. The study combines quantitative and qualitative data. Findings The results from this study show that rewarding citizens is clearly a factor to be considered in any policy to maximize citizens’ cooperation in tracking down tax evaders. They indicate that fiscal benefits have a stronger effect on the request of invoices than the lottery and that it is necessary to promote good governance and justice. Practical implications Findings should be used to inform a cost-effective public policy that takes into account citizens’ concerns and combine deterrent measures and rewards in the form of tax benefits, rather than tax lotteries. Originality/value This paper provides new insights into VAT lotteries, which seem to be increasingly favored by policy makers but are an area under-researched. By recommending a course of action to maximize citizens’ cooperation in tracking down tax evaders, the paper provides useful practical implications and is a contribution for the study of VAT evasion policies.

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Section: Discussioncontrasting

confidence: 66%

“Please give me an invoice”: VAT evasion and the Portuguese tax lottery

Wilks

Cruz

Sousa

2019

IJSSP

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“…a behaviour), analysing the results of previous empirical studies, it becomes quickly apparent that tax morale has a strong effect on various forms of tax non-compliant behaviours. Lower levels of tax morale are associated with higher levels of tax evasion/lower levels of tax compliance (Brink and Porcano, 2016;Dell'Anno, 2009;Kirchgässner, 2010;Lima and Zaklan, 2008;Lisi, 2015;Stark and Kirchler, 2017;Sumartaya and Hafidiah, 2014;Torgler and Schaffner, 2007;Torgler et al, 2008), higher levels of shadow economy (Halla, 2012;Torgler and Schneider, 2006, higher participation in undeclared work (Williams andHorodnic, 2015c, 2016a;Windebank and Horodnic, 2017) or higher participation in underreporting wages (Williams and Horodnic, 2015a, b, c, d, e, 2016b, 2017a. Similarly, a large asymmetry between formal and informal institutions was identified as being positively correlated with the informal payments made by patients for healthcare services (Horodnic and Williams, 2018;Williams andHorodnic, 2017, 2018).…”

Section: Tax Morale and Tax Compliancementioning

confidence: 99%

Tax morale and institutional theory: a systematic review

Horodnic

2018

IJSSP

107

105

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Purpose-The purpose of this paper is to conduct a systematic review of the factors that shape tax morale. A large range of random explanatory variables identified in the literature as determinants of tax morale are synthesised and structured by drawing inspiration from the institutional theory. Design/methodology/approach-To do this, a systematic search has been conducted using a library catalogue which provides access to more than 400 databases. Findings-The finding is that the institutional theory provides a suitable theoretical basis to explore tax morale. Indeed, all the factors until now identified as determinants of tax morale (except the control variables/socio-demographic characteristics) can be categorised either as belonging to formal institutions or to informal institutions. The most salient factor is trust, with both vertical and horizontal trust positively related to tax morale. Research limitations/implications-The outcome is a call for a more nuanced understanding of not only the effect of formal and informal institutions on tax morale but also how formal and informal institutions interact and alter each other and, consequently, affect tax morale. Practical implications-The paper seeks to encourage governments to start recognising that as low tax morale arises when a gap exists between formal and informal institutions, they need to design policy measures aimed to reduce this gap, rather than persisting with deterrence measures. Originality/value-This is the first systematic review of the factors that influence tax morale using an institutionalist lens.

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“…Indeed, lower levels of tax morale have been found to be significantly associated with higher levels of tax non-compliance (Brink and Porcano, 2016;Dell`Anno, 2009;Horodnic and Williams, 2016;Lima and Zaklan, 2008;Lisi, 2015;Ostapenko and Williams, 2016;Stark and Kirchler, 2017;Sumartaya and Hafidiah, 2014;Torgler, 2004a;Torgler et al, 2008;Williams and Horodnic, 2015a,b,c,d,e, 2016a,b, 2017aWindebank and Horodnic, 2017). Indeed, a strong negative correlation has been identified between tax morale and tax non-compliance with Pearson r values between -.46 and -.66 (Alm and Torgler, 2006;Torgler, 2011).…”

Section: Tax Non-compliance and Tax Morale: Literature Review And Hypmentioning

confidence: 99%

An Institutional Theory of Tax Non- Compliance in Bulgaria: a Tax Morale Approach

Williams¹

2020

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To explain tax non-compliance, the dominant approach has been to view noncompliance as a rational economic decision taken when the benefits outweigh the costs. However, many remain compliant even when non-compliance is the rational economic decision. The outcome has been the emergence of a new tax morale approach. Grounded in institutional theory, this asserts that formal institutional failings lead to an asymmetry between the laws and regulations of a society's formal institutions and the beliefs of the population that constitute its informal institutions. The greater is this asymmetry (measured by the level of tax morale), the greater is the prevalence of tax non-compliance. Until now, studies have analysed the tax morale of citizens. This paper evaluates the tax morale of entrepreneurs and identifies the formal institutional failings that lead to lower tax morale among entrepreneurs. Reporting 456 face-to-face interviews with a nationally representative sample of entrepreneurs in Bulgaria, it is revealed not only that the tax morale of entrepreneurs varies by sector and firm size, but also that the formal institutional failings significantly associated with low tax morale include a perceived lack of tax fairness, corruption and political instability. The implications for theory and policy are then discussed.

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Inheritance tax compliance – earmarking with normative value principles

Cited by 22 publications

References 50 publications

“Please give me an invoice”: VAT evasion and the Portuguese tax lottery

“Please give me an invoice”: VAT evasion and the Portuguese tax lottery

Tax morale and institutional theory: a systematic review

An Institutional Theory of Tax Non- Compliance in Bulgaria: a Tax Morale Approach

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