The Determinants of Tax Morale and Tax Compliance: Evidence from Jordan

Alasfour, Fadi; Samy, Martin; Bampton, Roberta

doi:10.1108/s1058-749720160000023005

Cited by 71 publications

(77 citation statements)

References 79 publications

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“…When analyzing citizens, rather than entrepreneurs, a large number of studies have found that the level of vertical trust of citizens in government depends on the perceived quality of public services and the level of satisfaction with public services (Williams, 2018;Williams and Horodnic, 2017a). For example, the level of vertical trust is positively correlated with the perceived effectiveness of government spending (Alasfour et al, 2016;Barone and Mocetti, 2011;Molero and Pujol, 2012;Sipos, 2015;Vythelingum et al, 2017); therefore, the quality of public services and government (Williams, 2018;Williams and Martinez, 2017). To start to evaluate whether this is also the case when entrepreneurs are analyzed, the following hypothesis can be tested:…”

Section: Informal Entrepreneurship and Institutional Theory: Literatumentioning

confidence: 99%

“…It is also the case that citizens who do not perceive the tax system as fair or taxes to be appropriately used by government tend to possess lower levels of vertical trust (Alasfour et al, 2016;Alm and Gomez, 2008;Çevik, 2016;Cummings et al, 2005Cummings et al, , 2009Cyan et al, 2016;Frey, 2003;Niesiob dzka, 2014;Torgler and Schaffner, 2007;Torgler et al, 2008;Vythelingum et al, 2017). For example, vertical trust is low if there are seen to be resource misallocations and inefficiencies because of state capture.…”

Section: Informal Entrepreneurship and Institutional Theory: Literatumentioning

confidence: 99%

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An Institutional Theory of Informal Entrepreneurship: Some Lessons From Fyr Macedonia

Williams

Bezeredi

2018

J. Dev. Entrepreneurship

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In recent years, a new institutionalist theory has emerged to explain the prevalence of informal sector entrepreneurship. This argues that formal institutional failures lead to the emergence of an asymmetry between the formal rules (laws and regulations) and the norms, values and beliefs of entrepreneurs regarding the acceptability of participating in the informal sector, which in turn leads to the prevalence of informal entrepreneurship. The aim of this paper is to evaluate this social actor approach by reporting evidence from 453 face-to-face interviews with a nationally representative sample of entrepreneurs in FYR Macedonia. This reveals not only a significant association between participation in the informal economy and the non-alignment of entrepreneurs’ views with the formal rules, but specific formal institutional failings that are significantly associated with the acceptability of informal entrepreneurship, namely poor quality public services, a lack of tax fairness, corruption and instability in the formal institutions. The theoretical and policy implications are then discussed.

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Section: Informal Entrepreneurship and Institutional Theory: Literatumentioning

confidence: 99%

Section: Informal Entrepreneurship and Institutional Theory: Literatumentioning

confidence: 99%

An Institutional Theory of Informal Entrepreneurship: Some Lessons From Fyr Macedonia

Williams

Bezeredi

2018

J. Dev. Entrepreneurship

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“…In addition to the roles of these normative, cultural and regulatory pillars on tax morale, an economic perspective is also included to have a wider view on the issue of tax morale. Indeed, previous studies have revealed not only that the level of economic development is positively correlated with tax morale (Doerrenberg & Peichl, 2010;Gerstenbluth et al, 2012;Williams & Krasniqi, 2017;Williams & Martinez, 2014) but also that higher satisfaction with one's financial situation is significantly associated with higher tax morale (Alasfour et al, 2016;D'Attoma, 2015;Filippin et al, 2013;Ibrahim et al, 2015;Kondelaji et al, 2016;Martins & Gomes, 2014;Ristovska et al, 2013;Williams & Horodnic, 2016c;Windebank & Horodnic, 2016). To test this economic dimension, therefore, the following hypothesis is tested:…”

Section: Tax Morale and Neo-institutional Theory: Literature Review Amentioning

confidence: 98%

Neo-Kurumsal Perspektif ile Vergi Uyumsuzluğunu Anlamak: Türkiye’deki Bir Kamuoyu Araştırmasından Bulgular

Kayaoğlu

Williams

2020

Sosyoekonomi

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Conventionally, those engaging in tax non-compliance are explained as rational economic actors doing so when the benefits outweigh the costs. However, many individuals are still compliant to their tax regimes even when the pay-off from tax evasion is greater than the costs. The result is the emergence of a social actor perspective that gives primacy to tax morale when explaining tax noncompliance. Through the lens of neo-institutionalist theory, this approach argues that citizens behave in ways that reflect the normative, cultural-cognitive and regulatory rules of their institutional environments. To test this theory, we have analyzed a representative micro survey of 2,528 citizens in Turkey. The finding we have obtained in this paper using an econometric analysis is that high tax morale is significantly more likely when there is trust in government (the normative dimension), feeling of belonging to the nation (the cultural-cognitive dimension) and perceptions of the risk and severity of punishment (regulatory-instrumental dimension). It displays the importance of the tax morale approach when explaining and tackling tax non-compliance in Turkey.

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“…What, therefore, causes low levels of tax morale among some entrepreneurs than others? When analysing citizens, rather than entrepreneurs, numerous studies have found that the level of tax morale depends on whether citizens perceive the tax system as fair, or taxes to be inappropriately used by government (Alasfour et al, 2016;Alm and Gomez, 2008;Çevik, 2016;Cummings et al, 2009;Cyan et al, 2016;Frey, 2003;Niesiobędzka, 2014;Torgler et al, 2008;Vythelingum et al, 2017). For example, tax morale is low when citizens view there to be resource misallocations and inefficiencies due to state capture.…”

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

confidence: 99%

“…Distributive fairness hypothesis (H7): the lower is the perception of entrepreneurs that they receive sufficient in return for the taxes they pay, the lower is the level of tax morale. The level of tax morale is also related to the perceived quality of public services (Williams, 2018;Williams and Horodnic, 2017a;Williams and Martinez, 2017), such as the perceived effectiveness of government spending (Alasfour et al, 2016;Barone and Mocetti, 2011;Molero and Pujol, 2012;Sipos, 2015;Vythelingum et al, 2017). This can be measured by examining the perceived presence of public sector corruption (Khan and Quaddus, 2015;Round et al, 2008;Tonoyan et al, 2010), by which is meant the 'misuse of public office for private gain' (Svensson, 2005).…”

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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The Determinants of Tax Morale and Tax Compliance: Evidence from Jordan

Cited by 71 publications

References 79 publications

An Institutional Theory of Informal Entrepreneurship: Some Lessons From Fyr Macedonia

An Institutional Theory of Informal Entrepreneurship: Some Lessons From Fyr Macedonia

Neo-Kurumsal Perspektif ile Vergi Uyumsuzluğunu Anlamak: Türkiye’deki Bir Kamuoyu Araştırmasından Bulgular

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

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