Morality of informality: Tax morale in the Serbian business sector: An empirical investigation

Radulović, Branko

doi:10.5937/industrija47-20040

Cited by 6 publications

(6 citation statements)

References 32 publications

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“…Our study also overlaps with the part of the literature that addreses taxpayers" compliance behaviour in relation to other factors such as age, equity and industry, as well as their attitudes toward tax rate structure, tax complexity, tax enforcement, equity of the legislation and perception of corruption. Factors such as the legitimacy of the state, the efficiency of the tax administration, the legitimacy of the tax authorities, the feeling of belonging to the nation or national pride and the perception of the risk of sanctions and their severity, have also been prominent in tax compliance literature (Abd Obaid et al, 2020;Radulovic, 2019;Mickiewicz et al, 2019;Everest-Phillips and Sandall, 2008). For example, disapproval of tax administration, the risk of being caught and the overall tolerance of tax evasion are negatively associated with corporate tax compliance (Radulovic, 2019).…”

Section: Related Literaturementioning

confidence: 99%

Determinants of business tax compliance: A case study of Togo

Koku,

Isaac

2023

J. Account. Taxation

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The results of a survey conducted by the Office of Togolese Revenue (OTR) in 2019, which covered 413 formal firms, show that several factors are key determinants of businesses' willingness to pay taxes. These include appreciation of tax fraud, amendment of tax laws, tax knowledge, tax beneficiaries, bribes, severity of penalties, legitimacy of customs duties, appreciation of tax amount, tax burden, legitimacy of Value Added Tax (VAT) and geographical location (Maritime, Plateaux, Centrale, Kara and Savane) of the firms. Using a probit model, the results show that all these factors are key determinants of voluntary tax compliance, except for the tax laws amendment, tax amount appreciation and the tax burden. When isolating the Maritime region, the result remains unchanged except for the fact that the appreciation of tax fraud has no significant impact on voluntary compliance in that region. Finally, the determinants vary once businesses are differentiated by size (Small, Medium and Large) nationally or regionally.

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Section: Related Literaturementioning

confidence: 99%

Determinants of business tax compliance: A case study of Togo

Koku,

Isaac

2023

J. Account. Taxation

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“…This concept has its roots in the 1960s (Schmolders, 1970), way before the deterrence model by Allingham and Sandmo (1972) gained ground to explain tax compliance behaviour. Despite having been overshadowed by the deterrence theory, the once over-looked tax morale has become a focal point of contemporary research on tax compliance Dickerson, 2014;Horodnic, 2018;Radulović, 2019;C. C. Williams & Bezeredi, 2018;C.…”

Section: Tax Moralementioning

confidence: 99%

“…In most developing countries such as Kenya, Tanzania, Mozambique and Zimbabwe (Heggstad et al, 2011) (tax collection is often through the use of coercive power (enforced tax compliance), paying little attention to the need to bring in persuasive power (voluntary tax compliance) (Batrancea et al, 2013;Daude et al, 2013;Lisi, 2015). As a matter of fact lower levels of tax morale have been empirically observed to be remarkably correlated with higher degrees of tax non-compliance (Horodnic, 2018;Lisi, 2015;Radulović, 2019;C. Williams, 2020).…”

Section: Tax Collection Tax Morale and Compliancementioning

confidence: 99%

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Governance quality and tax morale and compliance in Zimbabwe’s informal sector

Mpofu

2020

Cogent Business & Management

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Tax morale was found in literature to shape tax compliance behaviour and to be significantly correlated with strategies of tax effort across countries. In addition views regarding the quality of institutions, the cost-benefit analysis on the use of tax revenues and the quality of governance influence tax morale thus in turn affecting tax compliance. Governance and tax morale are often the most misunderstood and overlooked dimensions of tax compliance yet these are very crucial in the success of tax policy and tax administration. Better tax administration enforcement must be combined with tax reforms that improve transparency and accountability in the use of tax revenues in order to boost tax morale and heighten tax compliance in developing countries, sub-Saharan African countries and Zimbabwe in particular. In these economies corruption in tax administration and government is widespread. The study makes a theoretical contribution to literature on the tax morale, governance quality and tax compliance debate in the informal sector. Three important gaps motivate this study, the lacuna in research that explores the governance-taxation (tax morale and compliance) linkage in developing countries and in Zimbabwe, revenue mobilisation still remains weak in developing countries with fragile capacity to enforce tax compliance thus suggesting an

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“…The socio-economic factors include educational attainment, employment status, and economic status, while the institutional factors include support for democracy, trust in government, and preferences for redistribution (OECD, 2013). The report revealed significant gaps and unresolved debates on the factors underlying tax behavior; therefore, recognizing tax morality is necessary to fully understand tax compliance decisions (Alm, 2018;Alm & Torgler, 2011;Radulović, 2019). It is now relevant to shift from mechanistic recommendations on tax administration to an analysis of the socio-psychological aspects of understanding the factors that may influence people's willingness to pay taxes.…”

Section: Introductionmentioning

confidence: 99%

Trust in Tax Authorities, Tax Fairness and Tax Morale

Tajuddin,

Muhammad,

Ibrahim

2023

I-iECONS

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Existing literature stresses the importance of socio-economic factors when aiming to increase the willingness of taxpayers to pay their tax obligations. There have been insufficient studies on socio-psychological factors in tax morale research. This study focuses on trust in tax authorities and tax fairness factors that may explain the reasons why people pay taxes. The purpose of this conceptual review is to analyze and synthesize the theoretical and conceptual frameworks of trust in tax authorities and tax fairness in the tax morale context. Trust in tax authorities refers to the level of confidence taxpayers put in tax authorities based on how well they perform their duties. Tax fairness refers to taxpayers who perceive paying taxes as a fair process in terms of the treatments and benefits they receive for the taxes paid. Tax morale is defined as the intrinsic motivation of taxpayers to pay their fair share of taxes. Using the Social Psychology of Taxation (SPT) and Ibnu Khaldun's Theory of Taxation (IKTK), the interrelationships between trust in tax authorities, tax fairness, and tax morale are critically evaluated and analyzed. The review of relevant tax morale literature is conducted to identify any research gaps, inconsistencies, or ambiguities. It is interesting to note that there were mixed findings in terms of the effect of tax fairness on tax morale. Some studies have demonstrated positive relationships, while others have found negative ones. It has been discovered that taxpayers’ trust in tax administrations would increase if tax authorities treated taxpayers with consideration and respect, applied clear and fair procedures to all taxpayers, and assisted them in meeting their tax obligations. A psychological contract aptly captures the interaction between tax authorities and taxpayers, which will manifest in a willingness to pay taxes. Further investigation needs to be carried out in order to statistically validate the direct and indirect relationships between trust in tax authorities, tax fairness, and tax morale.

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Morality of informality: Tax morale in the Serbian business sector: An empirical investigation

Cited by 6 publications

References 32 publications

Determinants of business tax compliance: A case study of Togo

Determinants of business tax compliance: A case study of Togo

Governance quality and tax morale and compliance in Zimbabwe’s informal sector

Trust in Tax Authorities, Tax Fairness and Tax Morale

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