Degree Discipline

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Tax Compliance in a Social Setting: the Influence of Norms, Perceptions of Fairness, and Trust in Government on Taxpayer Compliance (open access)

Tax Compliance in a Social Setting: the Influence of Norms, Perceptions of Fairness, and Trust in Government on Taxpayer Compliance

Many taxing authorities, including those in the United States (U.S.), rely on voluntary tax compliance and continually search for ways to increase tax revenues. Most of these methods are costly and labor intensive, such as audits and penalties for noncompliance. Prior tax compliance research has heavily investigated the influence that economic factors, such as tax rates and penalties, have on individual compliance intentions. However, economic models fail to fully predict individual tax compliance. Psychology literature suggests that social factors may also play an important role in individual tax compliance decisions. The purpose of this study is to examine the influence that social and psychological factors have on individuals' tax compliance intentions. Specifically, a model of taxpayer compliance is hypothesized that suggests that norms, perceived fairness of the tax system, and trust in government have a significant influence on compliance intentions. Results of a survey of 217 U.S. taxpayers found support for the influence of social factors on tax compliance. This research concludes that social norms have an indirect influence on compliance intentions through internalization as personal norms. Specifically, as the strength of social norms in favor of tax compliance increase, personal norms of tax compliance also increase, and this leads …
Date: August 2013
Creator: Jimenez, Peggy D.
System: The UNT Digital Library