The Knowledge Deficit About Taxes: Who It Affects and What to Do About It

Godbout, Luc; Genest-Grégoire, Antoine; Guay, Jean-Herman

doi:10.2139/ssrn.2998056

Cited by 3 publications

(2 citation statements)

References 18 publications

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“…3.2.1 Core foundations. The core foundations as identified by the OECD (2019), literacy, numeracy and digital literacy, were also identified in the literature (Latiff et al, 2005;Waris and Murangwa, 2012;Cvrlje, 2015;Genest-Grégoire et al, 2017). They were not necessarily stated per se, but identified by the attendant digital competency required.…”

Section: Mapping Of Existing Conceptualisations or Measurement Of Tax...mentioning

confidence: 93%

Tax literacy: what does it mean?

Clercq

2021

MEDAR

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Purpose This paper aims to identify the competency domains to be included in a conceptual framework for tax literacy. Design/methodology/approach Using a qualitative approach, this study expands on the current understanding of the competency areas of tax literacy. A dual-purpose literature review was, therefore, conducted. The literature review first provided the body of knowledge that underpinned the study and second, the key data concepts for the draft competency structure to determine whether there is consensus on an international (supra) level. The literature review was supported by an interactive qualitative analysis to further present the concept of tax literacy from the perspectives of various national stakeholders in an emerging economy. Accounting and public finance educators from a higher education institution, as well as financial advisers as representatives of a profession with a direct interest in tax-related matters, were considered. Findings Although a discipline lens seems to strongly influence the previous authors’ view of what tax literacy means, it was possible to identify certain tax literacy competency domains that should be included in a taxpayer education curriculum. These content domains consist first of a knowledge domain which includes disciplinary, interdisciplinary, epistemic and procedural knowledge components. Second, the skills domain should include components of cognitive and meta-cognitive, social and emotional, as well as physical and practice skills. Third, personal and societal attitudes and values represent the third domain. Fourth, transformative competencies such as value creation, taking responsibility and reconciliation attributes are important. Finally, core foundational competencies, such as numeracy and literacy should be in place. Practical implications The draft conceptual framework for tax literacy could serve as the foundation for the further development of a tax literacy measurement instrument, as well as tax education courses. Originality/value A more holistic conceptual framework for tax literacy, portraying the multidimensional nature of taxation, is presented in contrast to the limited one-dimensional position presented up to now.

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Section: Mapping Of Existing Conceptualisations or Measurement Of Tax...mentioning

confidence: 93%

Tax literacy: what does it mean?

Clercq

2021

MEDAR

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“…Therefore, boost-and sludge-reducing-interventions aimed at improving taxpayers' understanding of the tax system might be a particularly promising approach. Individuals who have the knowledge, skills, and confidence to make responsible tax decisions are considered tax literate (Godbout et al 2017), and tax literacy has been found to be related to individuals' compliance decisions (Cvrlje 2015;Nichita et al 2019). Tax compliance might thus be boosted by including information about the fiscal system, the tax system, and the role taxes play in society in school curricula and educational programs.…”

Section: Using Insights From Nudges Boosts and Sludge To Improve Tax ...mentioning

confidence: 99%

Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance

Alm,

Burgstaller,

Domi

et al. 2023

Economies

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This paper discusses current developments in tax compliance research, with a focus on three aspects. First, we summarize empirical evidence on the traditional deterrence or enforcement approach, suggesting that tax audits and fines for noncompliance are critical in taxpayers’ compliance decisions. However, recent research indicates that the effects of deterrence are more nuanced than initially thought, suggesting that other interventions are needed to improve tax compliance. Second, therefore, we discuss research on behavioral approaches to increase tax compliance, starting with research that analyzes the effects of “nudges”, or interventions that use behavioral economics to alter the ways in which the choice architecture facing individuals is communicated to them by the tax administration. As applied to tax compliance, we conclude that nudges have had mixed effects on increasing tax compliance, suggesting that the specific design and implementation of these interventions determine their effectiveness. Third, we extend our discussion to other behavioral economics interventions that have not yet been studied widely in tax compliance research. These include “sludge”, or institutional features that complicate compliance, and “boosts”, or initiatives that target individuals’ competencies and thereby help them to make better decisions. Our central argument is that all three of these behavioral interventions should be utilized in the design of tax policies. However, for these methods to effectively complement traditional deterrence approaches, tax administrations should evaluate them before implementing them in the field. Closer cooperation between administrators and academics should thus be facilitated and encouraged.

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Accounting for Transparency: a Framework and Three Applications in Tax, Managerial, and Financial Accounting

Bischof,

Gassen,

Rohlfing-Bastian

et al. 2024

Schmalenbach J Bus Res

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This article presents how the Collaborative Research Center TRR 266 Accounting for Transparency understands and studies transparency in organizations and markets. Starting from our transparency definition, which is rooted in a sender/receiver framework, we discuss how accounting, taxation, and their regulation affect transparency and illustrate selected economic consequences of transparency. We use three analyses to exemplify our research approach. These analyses illustrate that (i) firms use tax literacy and tax advice as substitutes in their strategies to cope with signals sent by tax regulators about complex tax regulations, (ii) trade-offs between tighter management controls and employee motivation lead firms to design hybrid work environments that facilitate information exchange within the firm, and (iii) managers’ understanding of how financial statement users benefit from firm disclosures affects the managers’ assessments of disclosure regulation. Overall we argue that transparency is context-specific, hard to achieve, and often has ambiguous consequences. We conclude by highlighting selected transparency-related questions that interdisciplinary work with a particular emphasis on institutional details can meaningfully address.

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The Knowledge Deficit About Taxes: Who It Affects and What to Do About It

Abstract: E ss en ti a l P o li c y I n te ll ig en ce | Conseils in di sp en sa b le s s u r le s p o li ti qu es

Cited by 3 publications

References 18 publications

Tax literacy: what does it mean?

Tax literacy: what does it mean?

Nudges, Boosts, and Sludge: Using New Behavioral Approaches to Improve Tax Compliance

Accounting for Transparency: a Framework and Three Applications in Tax, Managerial, and Financial Accounting

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