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Tax compliance, self-assessment and tax administration

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  • James, Simon
  • Alley, Clinton

Abstract

Tax 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.

Suggested Citation

  • James, Simon & Alley, Clinton, 2002. "Tax compliance, self-assessment and tax administration," MPRA Paper 26906, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:26906
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    File URL: https://mpra.ub.uni-muenchen.de/26906/1/MPRA_paper_26906.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. Kogler, Christoph & Batrancea, Larissa & Nichita, Anca & Pantya, Jozsef & Belianin, Alexis & Kirchler, Erich, 2013. "Trust and power as determinants of tax compliance: Testing the assumptions of the slippery slope framework in Austria, Hungary, Romania and Russia," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 169-180.
    3. Brindusa Tudose & Gabriela Tiplic, 2014. "The Tax System And Taxpayers Behavior," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 20.
    4. Larissa BATRANCEA, 2014. "Luring Fiscal Refugees: The Highs And Lows Of Tax Havens," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 79-87, February.
    5. Dr Ken Devos, 2013. "Do Penalties And Enforcement Measures Make Taxpayers More Compliant? The View Of Australian Tax Evaders," Far East Journal of Psychology and Business, Far East Research Centre, vol. 12(1), pages 1-9, July.
    6. Tan, Fangfang & Yim, Andrew, 2014. "Can strategic uncertainty help deter tax evasion? An experiment on auditing rules," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 161-174.
    7. 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.
    8. TODOR Silvia Paula & DUMITER Florin Cornel & BREZEANU Petre, 2016. "The Influence Of Fiscal Pressure On The Taxpayers Behavior," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 68(3), pages 178-193, December.
    9. Bătrâncea Larissa & Nichita Ramona-Anca & Bătrâncea Ioan, 2012. "Tax Non-Compliance Behavior in the Light of Tax Law Complexity and the Relationship Between Authorities and Taxpayers," Scientific Annals of Economics and Business, De Gruyter Open, vol. 59(1), pages 97-106, July.
    10. Tudose Mihaela Brindusa & Strapuc Constantin, 2015. "The Impact Of Fiscality On The Behaviour Of Taxpayer. Analysis On The Example Of Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 5-9, June.
    11. Larissa Batrancea & Ramona-Anca Nichita & Ioan Batrancea, 2014. "Scrutinizing Trust In Authorities And Power Of Authorities As Facets Shaping The Mediterranean Tax Climate," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 61-69, June.
    12. James, Simon, 2004. "Financing multi-level government," MPRA Paper 26760, University Library of Munich, Germany.

    More about this item

    Keywords

    Tax compliance; self-assessment; tax administration;

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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