Tax Morale and Tax Compliance

DOI

10.2991/aicobpa-18.2019.60How to use a DOI?

Keywords

tax morale; tax compliance; perceived tax benefit; median voter theorem

Abstract

People pay taxes because they are forced to obey laws and regulations. Forcing people to pay tax will encourage them to avoid or even to evasive tax. In order to reduce tax avoidance and tax evasion, tax institution has to increase tax morale. Tax morale has a function to increasing intrinsic motivation to pay taxes so the belief in paying tax is not caused just to obey laws and regulations but intrinsic motivation. Poor tax morale result in a low level of tax compliance. In building a tax morale model, we use model from Torgler and finding from other researcher and a slight comparison with Australian Tax Office Tax Compliance. The indicators used both in tax morale model and tax compliance seem to be coincided, in other words, we have to encourage to develop tax morale indicators. We encourage to add another indicator, based on finding of other researcher that is Perceived Tax Benefit. We believe that Perceived Tax Benefit is a strong indicator of tax morale to raise the intrinsic motivation where the tax payer believes that their tax is used to finance development and tax payer also able to perceive for what they pay tax for. “median voter theorem" indicates that the taxpayers must be able to feel that what they are paying for is best used for development and this theorem can be represented by perceived tax benefit.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yuniadi Mayowan
PY  - 2019/08
DA  - 2019/08
TI  - Tax Morale and Tax Compliance
BT  - Proceedings of the Annual International Conference of Business and Public Administration (AICoBPA 2018)
PB  - Atlantis Press
SP  - 264
EP  - 267
SN  - 2352-5428
UR  - https://doi.org/10.2991/aicobpa-18.2019.60
DO  - 10.2991/aicobpa-18.2019.60
ID  - Mayowan2019/08
ER  -