Tax Talk: An Exploration of Online Discussions Among Taxpayers

Onu, Diana; Oats, Lynne

doi:10.1007/s10551-016-3032-y

Cited by 24 publications

(18 citation statements)

References 50 publications

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“…However, if such low levels of intended tax evasion were valid, the results support many authors' broader conclusions (e.g., Alm & Torgler, 2011;Eriksen & Fallan, 1996;Onu & Oats, 2016;Wenzel, 2005), who challenge the paradigm of profitmaximizing rational taxpayers (Allingham & Sandmo, 1972) and suggest that business owners' tax behavior is most likely influenced by ethical considerations.…”

Section: Discussionsupporting

confidence: 76%

Mental accounting of income tax and value added tax among self-employed business owners

Olsen

Kasper

Muehlbacher

et al. 2019

Journal of Economic Psychology

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Mental accounting describes a series of cognitive operations that help organize financial activities and facilitate money management. Self-employed taxpayers who make use of a separate mental account for future income tax payments or collected value added tax (VAT) might find it easier to declare their taxes correctly than taxpayers who do not. This study used a questionnaire to investigate whether selfemployed taxpayers (N = 350) use mental accounting to manage their income tax and VAT obligations, whether mental accounting relates to tax knowledge, business and personality characteristics, and to what extent mental accounting is related to intended tax behavior. Our results reveal that some taxpayers mentally segregate taxes from turnover (segregators) while others do not (integrators). We found small differences in mental accounting between income taxes and VAT. Moreover, confirmatory factor analyses suggested that tax knowledge and mental accounting are distinct constructs. Segregation of taxes was related to lower impulsivity and more positive attitudes toward taxation. Individuals who stated they segregate taxes due from turnover more often claimed to run financially prosperous businesses. Mental accounting was not related to intentions of evading taxes, but individuals with higher mental accounting scores reported more pronounced levels of tax planning. While our research design does not allow drawing causal inferences, these findings could suggest that increasing self-employed taxpayers' ability to organize their financial activities might be a promising strategy to strengthen the competitiveness of their businesses.

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Section: Discussionsupporting

confidence: 76%

Mental accounting of income tax and value added tax among self-employed business owners

Olsen

Kasper

Muehlbacher

et al. 2019

Journal of Economic Psychology

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“…Tax researchers in advanced countries have advocated for the qualitative method in understanding tax compliance issues (e.g., Oats, 2012), and many studies have been conducted in advanced countries using this method (Ashby & Webley, 2008;Björklund Larsen, 2013;Boll, 2014;Morse, Karlinsky, & Bankman, 2009;Onu & Oats, 2016;Rawlings, 2003;Rawlings & Braithwaite, 2003). Perhaps, due to numerous qualitative insights on tax compliance behavior in advanced countries, understanding of the subject appears deeper than what is known in developing countries.…”

Section: Introductionmentioning

confidence: 99%

What Is Wrong With the Fiscal Social Contract of Taxation in Developing Countries? A Dialogue With Self-Employed Business Owners in Nigeria

2017

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Contemporary societies are bound in a fiscal social contract between citizens and their elected governments who administer the states in the interest of all members. The fiscal social contract implies that citizens should pay tax which is utilized by government to execute programs for the collective good. While the advanced countries have done a better job of mobilizing tax as a resource for societal development, developing countries have performed poorly. A large number of high-income earners in developing countries avoid the tax system thus hampering development efforts. Previous studies have alluded to a culture of tax evasion among citizens of developing countries as a key factor influencing noncompliance. However, this study argues that these studies did not reach the best conclusion as their methodology excluded the taxpayers' narratives. We interviewed self-employed taxpayers in Nigeria's capital city, Abuja. Results of the analysis revealed taxpayers' frustration with an opaque tax system, deplorable socioeconomic condition, and nonfunctioning of the tax audit system. We argue that the massive tax noncompliance in developing countries may be better understood as "tax boycott" arising from taxpayers' frustration with the fiscal social contract of governance. Policy implications of the findings were discussed in the concluding section.

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“…highlighting positive aspects of paying tax (Onu & Oats, 2018). We modified the questionnaire (Wang et al, 2012) for tax authority communication.…”

Section: Resultsmentioning

confidence: 99%

Tax Authority Versus Peer Communication: The Influence of Trust, Service Climate, and Voluntary Cooperation

Tjondro

Patuli

Andrianto

et al. 2020

Jurnal Ilmiah Akuntansi dan Bisnis

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This research is the first study to discuss the combined influence of peer communication and tax authority communication on taxpayers’ trust in tax institutions, perceptions of service climate, and voluntary cooperation. We also compare the influences of the tax authorities and peer communication on trust, service climate, and voluntary cooperation. The survey was conducted in 2019 and represented five major cities in Indonesia (Jakarta, Surabaya, Semarang, Bandung, and Denpasar). Respondents included 120 self-employed taxpayers in two business fields, namely, trade/production and services/professions. The respondents mainly included those from the millenial and generation X age groups due to their significant contribution to the tax revenue. Participants were recruited using quota sampling, and the data analysis tools included partial least square with Wrap-PLS software. Results show that tax authority communication is more powerful in influencing trust, perception of service climate, and voluntary cooperation, than peer communication. Keywords: Peer communication, tax authority communication, trust, service climate, voluntary cooperation

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Tax Talk: An Exploration of Online Discussions Among Taxpayers

Cited by 24 publications

References 50 publications

Mental accounting of income tax and value added tax among self-employed business owners

Mental accounting of income tax and value added tax among self-employed business owners

What Is Wrong With the Fiscal Social Contract of Taxation in Developing Countries? A Dialogue With Self-Employed Business Owners in Nigeria

Tax Authority Versus Peer Communication: The Influence of Trust, Service Climate, and Voluntary Cooperation

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