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Tax Compliance, Tax Morale, and Governance Quality

Author

Listed:
  • Benno Torgler

    (The School of Economics and Finance, Queensland University of Technology)

  • Markus Schaffner

    (The School of Economics and Finance, Queensland University of Technology)

  • Alison Macintyre

    (The School of Economics and Finance, Queensland University of Technology)

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.

Suggested Citation

  • Benno Torgler & Markus Schaffner & Alison Macintyre, 2007. "Tax Compliance, Tax Morale, and Governance Quality," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0727, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    • Handle: RePEc:ays:ispwps:paper0727
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    File URL: http://icepp.gsu.edu/files/2015/03/ispwp0727.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    tax morale; tax compliance; tax evasion; institutional and governance quality; social capital;
    All these keywords.

    JEL classification:

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

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