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Tax Compliance, Tax Morale, and Governance Quality

  • 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)

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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File URL: http://icepp.gsu.edu/files/2015/03/ispwp0727.pdf
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Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper0727.

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Length: 40 pages
Date of creation: 01 Dec 2007
Date of revision:
Handle: RePEc:ays:ispwps:paper0727
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