Tax compliance as the result of a psychological tax contract: The role of incentives and responsive regulation
Collections | ANU Centre for Tax System Integrity (CTSI) |
---|---|
Title: | Tax compliance as the result of a psychological tax contract: The role of incentives and responsive regulation |
Author(s): | Feld, Lars Frey, Bruno Australian National University. Centre for Tax System Integrity Australian Taxation Office |
Publisher: | Centre for Tax System Integrity (CTSI), Research School of Social Sciences, The Australian National University Australian Taxation Office |
Series/Report no.: | Working paper (Centre for Tax System Integrity) ; no. 76 |
Description: | In this paper, we develop the notion of a psychological tax contract by looking on the
conditions that shape tax morale and confronting it with empirical evidence. Based on
crowding theory, the asymmetric impact of negative (deterrence) and positive incentives
(rewards) on tax morale is discussed. As a contractual relationship implies duties and rights
for each contract partner, sticking to a reciprocity norm among citizens as well as to the
fiscal exchange paradigm between citizens and the state increase tax compliance. Citizens
may also perceive their tax payments as contributions to the ‘bonum commune’ such that
they are willing to honestly declare income even if they do not receive a full public good
equivalent to their tax payments as long as the political process is perceived to be fair and
legitimate. The contractual relationship has additional implications for the procedural
level: a friendly treatment of taxpayers by the tax office in auditing processes increases tax
compliance. |
URI: | http://hdl.handle.net/1885/154894 |
ISBN: | 0 642 76876 5 |
ISSN: | 1444-8211 |
Download
File | Description | Size | Format | Image |
---|---|---|---|---|
76.pdf | 329.56 kB | Adobe PDF | ![]() |
Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.
Updated: 17 November 2022/ Responsible Officer: University Librarian/ Page Contact: Library Systems & Web Coordinator