IDEAS home Printed from https://ideas.repec.org/a/iaf/journl/y2023i1p122-129.html
   My bibliography  Save this article

The Influence of Love of Money, Machiavellianism, and Injunctive Norms on Tax Evasion with Religiosity as Moderating Variable

Author

Listed:
  • Muliani Mangngalla'

    (Hasanuddin University, Makassar, Indonesia)

  • Alimuddin

    (Hasanuddin University, Makassar, Indonesia)

  • Grace T. Pontoh

    (Hasanuddin University, Makassar, Indonesia)

Abstract

Taxes form 85% of Indonesia's state budget revenues. Based on the importance of tax discipline, the government has implemented various tax reforms to increase tax revenue targets. However, many taxpayers try to find loopholes to avoid paying part of their taxes. The purpose of the study is to assess the influence of love of money, machiavellianism, and injunctive norms on tax evasion with religiosity as moderating variable. The object of the study is 100 taxpayers served by the North Makassar Primary Tax Service Office and South Makassar Primary Tax Service Office. The criterion for choosing taxpayers is the size of the annual income of more than 60 million rupees. Data were collected using questionnaires with a Likert scale. Love of money variable is measured by the money ethics scale (MES) developed by Tang (2002) using 4 indicators. The machiavellianism variable is measured by the 7-item Mach IV scale, which is adapted from Christie's (1970) indicator. The variable of injunctive norms is measured by the indicators developed by Bobek et al. (2013). The religiosity variable was measured using indicators developed by Glock and Stark (1965). The tax evasion variable was measured by 5 indicators with 7 statements developed by Suminarsasi and Supriyadi (2011). The partial least square (PLS) method was used for data analysis. The study's results showed that love of money and machiavellianism have a positive and significant influence on tax evasion. In contrast, injunctive norms negatively and significantly influence tax evasion. At the same time, religiosity moderates the impact of these factors on tax evasion. This suggests that high love of money, manipulative nature and willingness to adapt to the environment are why taxpayers cheat on their tax obligations. Still, taxpayers' religiosity can be a deterrent factor to tax evasion.

Suggested Citation

  • Muliani Mangngalla' & Alimuddin & Grace T. Pontoh, 2023. "The Influence of Love of Money, Machiavellianism, and Injunctive Norms on Tax Evasion with Religiosity as Moderating Variable," Oblik i finansi, Institute of Accounting and Finance, issue 1, pages 122-129, March.
    • Handle: RePEc:iaf:journl:y:2023:i:1:p:122-129
    DOI: 10.33146/2307-9878-2023-1(99)-122-129
    as

    Download full text from publisher

    File URL: http://www.afj.org.ua/pdf/975-vpliv-lyubovi-do-groshey-makiavellizmu-ta-nakazovih-norm-na-uhilennya-vid-splati-podatkiv-z-religiynistyu-yak-moderuyuchoyu-zminnoyu.pdf
    Download Restriction: no
    File URL: http://www.afj.org.ua/en/article/975/
    Download Restriction: no
    File URL: https://libkey.io/10.33146/2307-9878-2023-1(99)-122-129?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
    ---><---

    References listed on IDEAS

    as
    1. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    2. Donna Bobek & Amy Hageman & Charles Kelliher, 2013. "Analyzing the Role of Social Norms in Tax Compliance Behavior," Journal of Business Ethics, Springer, vol. 115(3), pages 451-468, July.
    3. Gunnthorsdottir, Anna & McCabe, Kevin & Smith, Vernon, 2002. "Using the Machiavellianism instrument to predict trustworthiness in a bargaining game," Journal of Economic Psychology, Elsevier, vol. 23(1), pages 49-66, February.
    4. Nurul Khafizah & Azwardi Azwardi & Lukluk Fuadah, 2020. "The Influence of Tax Knowledge, Tax Service Quality, Tax Audit and Use of Tax Sanctions on Tax Evasion: The Case Study of KPP Pratama Seberang Ulu 1 Palembang," Oblik i finansi, Institute of Accounting and Finance, issue 4, pages 68-74, December.
    5. Jimenez, Peggy & Iyer, Govind S., 2016. "Tax compliance in a social setting: The influence of social norms, trust in government, and perceived fairness on taxpayer compliance," Advances in accounting, Elsevier, vol. 34(C), pages 17-26.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Shaukat Malik, Sabah Younus, 2019. "Determinants of Tax-Compliance Behaviour Explored by Slippery Slope Framework and Theory of Planned Behaviour: An Evidence from Small Business Owner," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 6(2), pages 33-47, October.
    2. Thomas Tang & Yuh-Jia Chen, 2008. "Intelligence Vs. Wisdom: The Love of Money, Machiavellianism, and Unethical Behavior across College Major and Gender," Journal of Business Ethics, Springer, vol. 82(1), pages 1-26, September.
    3. Oliver Nnamdi Okafor, 2023. "Shaming of Tax Evaders: Empirical Evidence on Perceptions of Retributive Justice and Tax Compliance Intentions," Journal of Business Ethics, Springer, vol. 182(2), pages 377-395, January.
    4. McCulloch, Neil & Moerenhout, Tom & Yang, Joonseok, 2021. "Fuel subsidy reform and the social contract in Nigeria: A micro-economic analysis," Energy Policy, Elsevier, vol. 156(C).
    5. Jeffrey Cohen & Gil Manzon & Valentina Zamora, 2015. "Contextual and Individual Dimensions of Taxpayer Decision Making," Journal of Business Ethics, Springer, vol. 126(4), pages 631-647, February.
    6. Ioana Alexandra HORODNIC & Colin C WILLIAMS & Rodica IANOLE-CÄ‚LIN, 2020. "Does higher cash-in-hand income motivate young people to engage in under-declared employment?," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 11, pages 48-69, December.
    7. Nathalie Gonthier Besacier & Ingrid Bellettre, 2017. "Les déterminants des choix du premier emploi en audit : Une étude exploratoire des facteurs d’intention des étudiants français," Post-Print hal-01902150, HAL.
    8. Derek Dalton & Robin Radtke, 2013. "The Joint Effects of Machiavellianism and Ethical Environment on Whistle-Blowing," Journal of Business Ethics, Springer, vol. 117(1), pages 153-172, September.
    9. Ioana Alexandra Horodnic & Colin C. Williams & Alexandru Maxim & Iuliana Claudia Stoian & Oana Carmen Țugulea & Adrian V. Horodnic, 2021. "Knowing and Unknowing Purchases of Undeclared Healthcare Goods and Services: The Role of Vertical and Horizontal Trust," IJERPH, MDPI, vol. 18(21), pages 1-14, November.
    10. Mary B. Curtis & Jesse C. Robertson & R. Cameron Cockrell & L. Dutch Fayard, 2021. "Peer Ostracism as a Sanction Against Wrongdoers and Whistleblowers," Journal of Business Ethics, Springer, vol. 174(2), pages 333-354, November.
    11. Maria Andersson & Ola Eriksson & Chris Von Borgstede, 2012. "The Effects of Environmental Management Systems on Source Separation in the Work and Home Settings," Sustainability, MDPI, vol. 4(6), pages 1-17, June.
    12. Tran Huy Phuong & Thanh Trung Hieu, 2015. "Predictors of Entrepreneurial Intentions of Undergraduate Students in Vietnam: An Empirical Study," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(8), pages 46-55, August.
    13. Clara Cardone-Riportella & María José Casasola-Martinez & Isabel Feito-Ruiz, 2014. "Do Entrepreneurs Come From Venus Or Mars? Impact Of Postgraduate Studies: Gender And Family Business Background," Working Papers 14.04, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration), revised Sep 2014.
    14. Peng Cheng & Zhe Ouyang & Yang Liu, 0. "The effect of information overload on the intention of consumers to adopt electric vehicles," Transportation, Springer, vol. 0, pages 1-20.
    15. Ruijie Zhu & Guojing Zhao & Zehai Long & Yangjie Huang & Zhaoxin Huang, 2022. "Entrepreneurship or Employment? A Survey of College Students’ Sustainable Entrepreneurial Intentions," Sustainability, MDPI, vol. 14(9), pages 1-15, May.
    16. Alsalem, Amani & Fry, Marie-Louise & Thaichon, Park, 2020. "To donate or to waste it: Understanding posthumous organ donation attitude," Australasian marketing journal, Elsevier, vol. 28(3), pages 87-97.
    17. Pan, Jing Yu & Liu, Dahai, 2022. "Mask-wearing intentions on airplanes during COVID-19 – Application of theory of planned behavior model," Transport Policy, Elsevier, vol. 119(C), pages 32-44.
    18. Benoît Lécureux & Adrien Bonnet & Ouassim Manout & Jaâfar Berrada & Louafi Bouzouina, 2022. "Acceptance of Shared Autonomous Vehicles: A Literature Review of stated choice experiments," Working Papers hal-03814947, HAL.
    19. Jacqueline Ruth & Steffen Willwacher & Oliver Korn, 2022. "Acceptance of Digital Sports: A Study Showing the Rising Acceptance of Digital Health Activities Due to the SARS-CoV-19 Pandemic," IJERPH, MDPI, vol. 19(1), pages 1-16, January.
    20. Jariyasunant, Jerald & Carrel, Andre & Ekambaram, Venkatesan & Gaker, David & Sengupta, Raja & Walker, Joan L., 2012. "The Quantified Traveler: Changing transport behavior with personalized travel data feedback," University of California Transportation Center, Working Papers qt3047k0dw, University of California Transportation Center.

    More about this item

    Keywords

    love of money; machiavellianism; injunctive norms; tax evasion; religiosity; ethics;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

    Statistics

    Access and download statistics

    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:iaf:journl:y:2023:i:1:p:122-129. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc 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 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: Serhiy Ostapchuk (email available below). General contact details of provider: https://edirc.repec.org/data/iafkvua.html .

    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.