The Social Norms of Tax Compliance: Evidence from Australia, Singapore, and the United States
AbstractTax compliance is a concern to governments around the world. Prior research (Alm, J. and I. Sanchez: 1995, KYKLOS 48, 3â€“19) has attributed unexplained inter-country differences in compliance rates to differences in social norms. Economics researchers studying tax compliance in the United States (U.S.) (see for example J. Andreoni etÂ al.: 1998, Journal of Economic Literature 36, 818â€“860) have called for more attention to social (as opposed to economic) influences on tax compliance. In this study, we extend this prior research by explicitly examining the role of social norms [Cialdini, R. and M. Trost: 1998, The Handbook of Social Psychology (Oxford University Press, New York)] on tax compliance in three different countries. We test our research hypotheses using a hypothetical compliance scenario, which was administered in Australia, Singapore, and the U.S. There were differences in compliance rates and social norms among the three countries. Factor analysis of the social norm questions identified three distinct social norm constructs. Two of these factors were significant in explaining tax compliance behavior. The first and most influential factor was taxpayersâ€™ own personal moral beliefs, along with the beliefs of those close to them (e.g., friends and important others). The second significant factor represented societal views of proper behavior. We conclude that social norms help to explain tax compliance intentions and why tax compliance rates are higher than would be predicted by strictly economic models. Copyright Springer Science+Business Media B.V. 2007
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Springer in its journal Journal of Business Ethics.
Volume (Year): 74 (2007)
Issue (Month): 1 (August)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100281
social norms; tax compliance;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Luigi Bosco & Luigi Mittone, 1994.
"Tax evasion and moral constraints: some experimental evidence,"
Department of Economics Working Papers
9402, Department of Economics, University of Trento, Italia.
- Bosco, Luigi & Mittone, Luigi, 1997. "Tax Evasion and Moral Constraints: Some Experimental Evidence," Kyklos, Wiley Blackwell, vol. 50(3), pages 297-324.
- Alm, James & Sanchez, Isabel & de Juan, Ana, 1995. "Economic and Noneconomic Factors in Tax Compliance," Kyklos, Wiley Blackwell, vol. 48(1), pages 3-18.
- Alm, James & McClelland, Gary H & Schulze, William D, 1999. "Changing the Social Norm of Tax Compliance by Voting," Kyklos, Wiley Blackwell, vol. 52(2), pages 141-71.
- Wenzel, Michael, 2004. "An analysis of norm processes in tax compliance," Journal of Economic Psychology, Elsevier, vol. 25(2), pages 213-228, April.
- repec:att:wimass:9610 is not listed on IDEAS
- Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
- Andreoni, J. & Erard, B. & Feinstein, J., 1996.
9610r, Wisconsin Madison - Social Systems.
- Harrison, Graeme L. & McKinnon, Jill L., 1999. "Cross-cultural research in management control systems design: a review of the current state," Accounting, Organizations and Society, Elsevier, vol. 24(5-6), pages 483-506, July.
- Baskerville, Rachel F., 2003. "Hofstede never studied culture," Accounting, Organizations and Society, Elsevier, vol. 28(1), pages 1-14, January.
- Demirbag, Mehmet & Frecknall-Hughes, Jane & Glaister, Keith W. & Tatoglu, Ekrem, 2013. "Ethics and taxation: A cross-national comparison of UK and Turkish firms," International Business Review, Elsevier, vol. 22(1), pages 100-111.
- Blanthorne, Cindy & Kaplan, Steven, 2008. "An egocentric model of the relations among the opportunity to underreport, social norms, ethical beliefs, and underreporting behavior," Accounting, Organizations and Society, Elsevier, vol. 33(7-8), pages 684-703.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.