IDEAS home Printed from https://ideas.repec.org/a/wsi/jdexxx/v25y2020i02ns1084946720500119.html
   My bibliography  Save this article

Tax Morale And Social Business In Mexico

Author

Listed:
  • ROBERTO FUENTES-CONTRERAS

    (School of Economics and International Relations, Universidad Autónoma de Baja California, Calzada Tecnológico #14418, Colonia Mesa de Otay Tijuana, Baja California, Mexico 22390, Mexico)

  • ALEJANDRO MUNGARAY-LAGARDA

    (School of Economics and International Relations, Universidad Autónoma de Baja California, Calzada Tecnológico #14418, Colonia Mesa de Otay Tijuana, Baja California, Mexico 22390, Mexico)

  • MARTIN RAMIREZ-URQUIDY

    (School of Economics and International Relations, Universidad Autónoma de Baja California, Calzada Tecnológico #14418, Colonia Mesa de Otay Tijuana, Baja California, Mexico 22390, Mexico)

Abstract

This research presents empirical results about the importance of tax morale in the probability of tax compliance in social businesses. It highlights the relevance of increasing the intrinsic value to the social business owner on paying taxes, instead of the traditional approach of increasing punishment, to reduce non-compliance. The paper suggests changing the focus question from “Why don’t they pay taxes?” to “Why, despite the low probability of being punished for not paying taxes, do some social business owners comply with their tax contribution?”. The main results of the research point out that factors such as public expenditure in economic development increases the probability of tax compliance in social businesses, whereas public expenditure in social programs decreases this probability.

Suggested Citation

  • Roberto Fuentes-Contreras & Alejandro Mungaray-Lagarda & Martin Ramirez-Urquidy, 2020. "Tax Morale And Social Business In Mexico," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 1-10, June.
  • Handle: RePEc:wsi:jdexxx:v:25:y:2020:i:02:n:s1084946720500119
    DOI: 10.1142/S1084946720500119
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1084946720500119
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S1084946720500119?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:jdexxx:v:25:y:2020:i:02:n:s1084946720500119. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/jde/jde.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.