The Effect of Economic Patriotism on Tax Morale and Attitudes Toward Tax Compliance

MacGregor, Jason; Wilkinson, Brett

doi:10.1108/s1058-7497(2012)0000020009

Cited by 21 publications

(29 citation statements)

References 13 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Past studies dedicated to the patriotism-income tax compliance relationship have been focused on the individual rather on businesses (e.g. Gangl et al, 2016;MacGregor and Wilkinson, 2012;Konrad and Qari, 2012). Additionally, studies that examined the relationship between patriotism and taxes are few; for instance, Gangl et al (2016) and Mac Gregor and Wilkinson (2012) called for more studies on the relationship between patriotism and tax compliance.…”

Section: Introductionmentioning

confidence: 99%

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

Alshira’h

AL-Shatnawi

Al-Okaily

et al. 2020

EMJB

View full text Add to dashboard Cite

PurposeThe purpose of this study is to better understand the issues on tax compliance. This study aims to examine the influence of patriotism and public governance on the sales tax compliance of small and medium enterprises (SMEs) and to examine the interaction between patriotism and public governance on sales tax compliance.Design/methodology/approachThis study was carried out by soliciting the opinions of owner-managers of SMEs in Jordan through a survey that was distributed by self-administered. This paper uses partial least squares structural equation modelling to investigate the influence of patriotism, public governance and the interaction of these two mechanisms on sales tax compliance for a sample of 385 SMEs.FindingsThis paper finds that patriotism and the public governance increase and improve the level of sales tax compliance. The findings also supported the interaction effect of patriotism on the relationship between public governance with sales tax compliance. Thus, all the hypothesised relationships were supported.Practical implicationsTax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan, may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen the compliance of eligible SMEs to further boost their sales collections.Originality/valueVery few studies have examined the determinants of sales tax compliance, and there has been an absence of work that examines the influence of the patriotism and public governance on sales tax compliance. This paper, therefore, fills a gap in the literature by providing the first empirical evidence about the influence of patriotism and public governance on sales tax compliance of SMEs in developing countries. This study is the initial paper to examine the interaction between patriotism and public governance on sales tax compliance among SMEs in developing countries

show abstract

Section: Introductionmentioning

confidence: 99%

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

Alshira’h

AL-Shatnawi

Al-Okaily

et al. 2020

EMJB

View full text Add to dashboard Cite

show abstract

“…,MacGregor and Wilkinson (2012),Martinez-Vazquez and Torgler (2009), Martins and Gomes (2014),Ristovska et al (2013),Torgler (2003bTorgler ( , d, 2004b),Torgler and Schneider (2004),Trüdinger and Hildebrandt (2013) ReligionNo difference in tax morale between different religions Alasfour et al (2016),Kanniainen and Pääkkönen (2010), Torgler (2003d) Higher religious values/high attendance to church are associated with higher tax morale,Andriani (2016),Bilgin (2014),Daude et al (2012), Feld and Torgler (2007), Feld et al (2008,Frey and Torgler (2007), Lago-Peñas and Lago-Peñas (2010),Leonardo and Martinez-Vazquez (2016), Martinez-Vazquez and Torgler (…”

mentioning

confidence: 99%

Tax morale and institutional theory: a systematic review

Horodnic

2018

IJSSP

107

105

View full text Add to dashboard Cite

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.

show abstract

“…Businesses that cheat on sales taxes are not patriotic 6. I would be willing to increase sales tax rate if it would help my country MacGregor and Wilkinson (2012) Sales tax compliance (STC)…”

Section: Methodsmentioning

confidence: 99%

“…According to the expected utility model of tax compliance, a rise in tax audit and a rise in tax penalty lead to increased tax compliance (Alm and Torgler, 2011;Andreoni et al, 1998;Allingham and Sandmo, 1972). The practical evidence concerning these predictions, however, is mixed (Maciejovsky et al, 2012;Frey, 2003), prompting alternative explanations of tax behaviour such as patriotism (MacGregor and Wilkinson, 2012). Hence, based on the above discussion, the current paper integrates deterrence theory and social identity theory to better understand tax compliance behaviour and introduces patriotism as a moderator of deterrence factors in the context of sales tax compliance.…”

Section: Patriotismmentioning

confidence: 99%

Moderating role of patriotism on sales tax compliance among Jordanian SMEs

Alshira’h

Abdul-Jabbar

2020

IMEFM

View full text Add to dashboard Cite

Purpose The purpose of this paper is to investigate the impact of tax audit, tax rate and tax penalty on sales tax compliance and examine the moderating effect of patriotism on the associations between tax audit, tax rate and tax penalty with sales tax compliance among Jordanian manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach In this study, 660 questionnaires were distributed by using systematic random sampling to manufacturing SMEs in Jordan, after which a total of 385 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLS-SEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model. Findings The findings showed that tax audit and tax penalty were positively associated with the level of sales tax compliance, whereas tax rate was insignificantly associated with sales tax compliance. They also demonstrated the moderating significant effect of patriotism on the relationship between tax penalty, tax audit and tax rate with sales tax compliance. Research limitations/implications Tax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen eligible SMEs to comply to further boost their sales collections. Originality/value This study extends the deterrence theory in the context of sales tax compliance by proposing the moderating effect of patriotism in the deterrence theory on sales tax compliance among SMEs. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended deterrence theory with patriotism as a moderating variable as well as its implications for theory and practice was also discussed.

show abstract

The Effect of Economic Patriotism on Tax Morale and Attitudes Toward Tax Compliance

Cited by 21 publications

References 13 publications

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

Do public governance and patriotism matter? Sales tax compliance among small and medium enterprises in developing countries: Jordanian evidence

Tax morale and institutional theory: a systematic review

Moderating role of patriotism on sales tax compliance among Jordanian SMEs

Contact Info

Product

Resources

About