Selfish Sharing? The Impact of the Sharing Economy on Tax Reporting Honesty

Berger, Leslie; Guo, Lan; King, Tisha

doi:10.1007/s10551-019-04409-z

Cited by 16 publications

(15 citation statements)

References 47 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…A platform provider in the given business model must make key decisions related to maintaining trust, reducing risk, ethical perceptions of customers, platform reputation through recommendation and positive network externalities, information quality as a platform service provider, and presenting the brand to users . Berger et al (2020) estimated that increases in income for SE players are liable to become taxpayers to the government for the revenue they are earning in the form of income. Yet it has also been argued that these platforms are involved in false reporting of taxable income, which contradicts their sole objective of being pro-social.…”

Section: Shweta Shirolkar and Kanchan Patilmentioning

confidence: 99%

Antecedents, Decisions, and Outcomes of Sharing Economies: A Systematic Literature Review

Shirolkar¹,

Patil²

2022

TIM Review

View full text Add to dashboard Cite

Section: Shweta Shirolkar and Kanchan Patilmentioning

confidence: 99%

Antecedents, Decisions, and Outcomes of Sharing Economies: A Systematic Literature Review

Shirolkar¹,

Patil²

2022

TIM Review

View full text Add to dashboard Cite

“…Sharing platforms are often characterized as a pathway to a more sustainable and equitable economy (Martin 2016). Berger et al (2020) argue that the pro-social benefits associated with sharing activities liberate service providers to dishonestly report their earned income. According to their findings, tax evasion rates are higher among service providers whose personal values are not in line with the values of the platform.…”

Section: Tax Evasion In the Platform Economymentioning

confidence: 99%

“…With our study, we contribute to two major streams of the literature. A nascent but growing body of research focuses on quantifying and explaining tax evasion on income earned via digital platforms (Bibler et al 2021;Wilking 2020;Berger et al 2020). We build on this research by adding the consumer perspective.…”

Section: Introductionmentioning

confidence: 99%

How do tax compliance labels impact sharing platform consumers? An empirical study on the interplay of trust, moral, and intention to book

Dann

Müller

Werner

et al. 2022

Inf Syst E-Bus Manage

View full text Add to dashboard Cite

The platform economy has generated various new and highly successful business models. However, certain models facilitate tax evasion for service providers on their income earned on these platforms. While tax evasion contradicts the pro-social claim of many sharing platforms, it is unclear whether a provider’s tax honesty constitutes a value for consumers at all. This study investigates the role of tax compliance for platform users by employing an online experiment ($$n=286$$ n = 286 ). The results indicate that consumers perceive providers’ tax compliance and consider it as a trust-enhancing signal. In further analysis, we find that consumers’ moral norms moderate both the signal’s trust-building effect as well as the relation between trust and transaction intention. In light of recent policy debates around taxing the platform economy, this study provides valuable practical insights for tax legislators.

show abstract

“…A recent study uses peer-to-peer platforms to examine dishonest reporting of taxable income of service providers and suggests that this is similar to the cash income setting (Berger et al, 2020). Since transaction records (especially credit card transactions) may be available and traceable for services conducted via these platforms, the tax authority can mandate that these platforms report all sources of income to increase compliance.…”

Section: Tax Compliancementioning

confidence: 99%

Implications of tax audit risk, consequences, aggressive behavior and ethics for compliance

Chan

Song

2021

IJAIM

View full text Add to dashboard Cite

Purpose This study investigates whether consideration of future consequences (CFC), Machiavellianism (MACH) and the perceived role of ethics and social responsibility (PRESOR) enhance understanding of the impact of tax audit risk on compliance. Design/methodology/approach A between-subjects experiment is conducted to test the hypotheses. A hypothetical tax audit case (or lack thereof) is used to create a high (low) perceived tax audit risk. The usable responses of 144 participants representing the general taxpayer population are analyzed. Findings The results suggest that taxpayers with lower CFC, MACH or PRESOR scores are more compliant when tax audit risk is high than low. In contrast, taxpayers with higher CFC, MACH or PRESOR scores are indifferent toward high or low tax audit risk. Research limitations/implications Research can elicit consideration of future consequences of being detected for taxpayers with lower CFC scores to increase compliance. Additionally, increased saliency of tax audit risk and detection of noncompliance in a tax audit can enhance the compliance of taxpayers with lower MACH scores. Dissemination of information via social media on the value of ethical and social responsibility of compliance can also increase the compliance of taxpayers with higher PRESOR scores. Practical implications This study helps researchers and the tax authority better understand the complexities of compliance and the ethical dilemmas that taxpayers face, especially when a considerable amount of cash income is involved. To deter underreporting of cash income, the tax authority can use social media to explain how data analytics tools can facilitate the analysis and integration of multiple sources of a taxpayer’s income and expenses. Originality/value Prior studies present participants with objective tax audit rates, such as 5, 25 and 30 (Cullis et al., 2006; Maciejovsky et al., 2007; Trivedi et al., 2003) or 50% (Maciejovsky et al., 2012) to investigate tax compliance. However, the actual tax audit rate is very low (about 1%) due to the limited resources of the tax authority (Alm and Torgler, 2011). To attenuate perceptions of unrealistic tax audit rates, this study operationalizes high (low) tax audit risk via a hypothetical tax audit case (or lack thereof) to examine the impact of tax audit risk on compliance.

show abstract

Selfish Sharing? The Impact of the Sharing Economy on Tax Reporting Honesty

Cited by 16 publications

References 47 publications

Antecedents, Decisions, and Outcomes of Sharing Economies: A Systematic Literature Review

Antecedents, Decisions, and Outcomes of Sharing Economies: A Systematic Literature Review

How do tax compliance labels impact sharing platform consumers? An empirical study on the interplay of trust, moral, and intention to book

Implications of tax audit risk, consequences, aggressive behavior and ethics for compliance

Contact Info

Product

Resources

About