Tax compliance, self-assessment and tax administration
AbstractTax compliance is likely to become even more important with developments such as self-assessment and electronic commerce. This paper re-examines the meaning of tax compliance. It finds that existing definitions are usually too narrow to encompass the topic in full and a wider definition is offered. The paper describes the purpose of tax compliance and the factors that affect the willingness of taxpayers to comply with a tax system. It discusses two different approaches to tax compliance and suggests that caution should be shown in the use of penalties and the emphasis should be on assisting citizens to meet their tax obligations. Fortunately recent developments have seen closer cooperation between tax agencies and academic researchers. A pressing task is the development of an approach that incorporates both the economic and behavioural approaches to tax compliance and a successful strategy for tax compliance must give due weight to all relevant factors and their interaction.
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.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 26906.
Date of creation: 2002
Date of revision:
Publication status: Published in Journal of Finance and Management in Public Services 2.2(2002): pp. 27-42
Tax compliance; self-assessment; tax administration;
Find related papers by JEL classification:
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
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.:
- Baldry, J. C., 1986. "Tax evasion is not a gamble : A report on two experiments," Economics Letters, Elsevier, vol. 22(4), pages 333-335.
- James Andreoni & Brian Erard & Jonathan Feinstein, 1998.
Journal of Economic Literature,
American Economic Association, vol. 36(2), pages 818-860, June.
- Cordes, Joseph J. & Nicholson, Eric & Sammartino, Frank, 1990. "Raising Revenue by Taxing Activities with Social Costs," National Tax Journal, National Tax Association, vol. 43(3), pages 343-56, September.
- Alm, James & Bahl, Roy & Murray, Matthew N., 1993. "Audit selection and income tax underreporting in the tax compliance game," Journal of Development Economics, Elsevier, vol. 42(1), pages 1-33, October.
- Wallschutzky, I. G., 1984. "Possible causes of tax evasion," Journal of Economic Psychology, Elsevier, vol. 5(4), pages 371-384, December.
- Alm, James & Jackson, Betty & McKee, Michael, 1992. "Institutional Uncertainty and Taxpayer Compliance," American Economic Review, American Economic Association, vol. 82(4), pages 1018-26, September.
- Cowell, Frank A, 1985. "The Economic Analysis of Tax Evasion," Bulletin of Economic Research, Wiley Blackwell, vol. 37(3), pages 163-93, September.
- Cowell, F. A., 1992. "Tax evasion and inequity," Journal of Economic Psychology, Elsevier, vol. 13(4), pages 521-543, December.
- Stephen Smith, 1992. "Taxation and the environment: a survey," Fiscal Studies, Institute for Fiscal Studies, vol. 13(4), pages 21-57, January.
- A. Mitchell Polinsky & Steven Shavell, 1999.
"The Economic Theory of Public Enforcement of Law,"
NBER Working Papers
6993, National Bureau of Economic Research, Inc.
- Brand, Phil, 1996. "Compliance: A 21st Century Approach," National Tax Journal, National Tax Association, vol. 49(3), pages 413-19, September.
- Bernasconi, Michele, 1998. "Tax evasion and orders of risk aversion," Journal of Public Economics, Elsevier, vol. 67(1), pages 123-134, January.
- Porcano, Thomas M., 1988. "Correlates of tax evasion," Journal of Economic Psychology, Elsevier, vol. 9(1), pages 47-67, March.
- Hasseldine, D John & Kaplan, Steven E, 1992. "The Effect of Different Sanction Communications on Hypothetical Taxpayer Compliance: Policy Implications from New Zealand," Public Finance = Finances publiques, , vol. 47(1), pages 45-60.
- Gordon, James P. P., 1989. "Individual morality and reputation costs as deterrents to tax evasion," European Economic Review, Elsevier, vol. 33(4), pages 797-805, April.
- Alm, James & Cronshaw, Mark B & McKee, Michael, 1993. "Tax Compliance with Endogenous Audit Selection Rules," Kyklos, Wiley Blackwell, vol. 46(1), pages 27-45.
- Viscusi, W. Kip, 1994. "Promoting Smokers' Welfare With Responsible Taxation," National Tax Journal, National Tax Association, vol. 47(3), pages 547-58, September.
- Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
- Cook, Philip J. & Moore, Michael J., 1994. "This Tax's for You: The Case for Higher Beer Taxes," National Tax Journal, National Tax Association, vol. 47(3), pages 559-73, September.
- Bordignon, Massimo, 1993. "A fairness approach to income tax evasion," Journal of Public Economics, Elsevier, vol. 52(3), pages 345-362, October.
- Erard, Brian & Feinstein, Jonathan S, 1994. "The Role of Moral Sentiments and Audit Perceptions in Tax Compliance," Public Finance = Finances publiques, , vol. 49(Supplemen), pages 70-89.
- Irvine, Ian J. & Sims, William A., 1993.
"The welfare effects of alcohol taxation,"
Journal of Public Economics,
Elsevier, vol. 52(1), pages 83-100, August.
- Hite, Peggy A, 1989. "A Positive Approach to Taxpayer Compliance," Public Finance = Finances publiques, , vol. 44(2), pages 249-67.
- Tzur, Joseph & Kraizberg, Elli, 1995. "Tax Evasion and the Risk Averse Tax Collector," Public Finance = Finances publiques, , vol. 50(1), pages 153-65.
- Blumenthal, Marsha & Christian, Charles W. & Slemrod, Joel, 2001. "Do Normative Appeals Affect Tax Compliance? Evidence from a Controlled Experiment in Minnesota," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 125-38, March Cit.
- Tran-Nam, Binh & Evans, Chris & Walpole, Michael & Ritchie, Katherine, 2000. "Tax Compliance Costs: Research Methodology and Empirical Evidence from Australia," National Tax Journal, National Tax Association, vol. 53(n. 2), pages 229-52, June Cita.
- James, Simon, 2004. "Financing multi-level government," MPRA Paper 26760, University Library of Munich, Germany.
- Holler, Marianne & Hoelzl, Erik & Kirchler, Erich & Leder, Susanne & Mannetti, Lucia, 2008. "Framing of information on the use of public finances, regulatory fit of recipients and tax compliance," Journal of Economic Psychology, Elsevier, vol. 29(4), pages 597-611, August.
- Kirchler, Erich & Wahl, Ingrid, 2010. "Tax compliance inventory TAX-I: Designing an inventory for surveys of tax compliance," Journal of Economic Psychology, Elsevier, vol. 31(3), pages 331-346, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.