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Tax Compliance, Tax Morale and Governance Quality

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  • Benno Torgler
  • Markus Schaffner
  • Alison Macintyre

Abstract

Taxpayers are more compliant than the traditional economic models predict. Why? The literature calls it the ?puzzle of tax compliance?. In this paper we use field, experimental and survey data to investigate the empirical evidence on whether presence of tax morale helps to resolve this puzzle. The results reveal a strong correlation between tax morale and tax evasion/compliance which confirms the value of taking the research a step further by looking at the determinants of tax morale. We explore this question with a particular focus on the importance of governance quality.

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Bibliographic Info

Paper provided by Center for Research in Economics, Management and the Arts (CREMA) in its series CREMA Working Paper Series with number 2007-17.

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Date of creation: Sep 2007
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Handle: RePEc:cra:wpaper:2007-17

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Keywords: tax morale; tax compliance; tax evasion; institutional and governance quality; social capital;

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References

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  1. Benno Torgler & Friedrich Schneider, 2007. "Shadow Economy, Tax Morale, Governance and Institutional Quality: A Panel Analysis," School of Economics and Finance Discussion Papers and Working Papers Series 210, School of Economics and Finance, Queensland University of Technology.
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  14. Benno Torgler & Christoph A. Schaltegger & Markus Schaffner, 2003. "Is Forgiveness Divine? A Cross-Culture Comparison of Tax Amnesties," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 139(III), pages 375-396, September.
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