The relation between national cultural dimensions and tax evasion (original) (raw)
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Journal of International Accounting, Auditing and Taxation, 2008
This study builds on the work of Tsakumis et al. [Tsakumis, G. T., Curatola, A. P,. & Porcano, T. M. (2007). The relation between national cultural dimensions and tax evasion. Journal of International Accounting, Auditing and Taxation, 16, 131–147] by conducting further empirical analysis of the relationship between Hofstede's [Hofstede, G. H. (1980). Cultures consequences: International differences in work-related values.
Effects of Culture on Tax Compliance: A Cross Check of Experimental and Survey Evidence
SSRN Electronic Journal, 2000
There is considerable evidence that enforcement efforts can increase tax compliance. However, there must be other forces at work because observed compliance levels cannot be fully explained by the level of enforcement actions typical of most tax authorities. Further, there are observed differences, not related to enforcement effort, in the levels of compliance across countries and cultures. To fully understand differences in compliance behavior across cultures one needs to understand differences in tax administration and citizen attitudes toward governments. The working hypothesis is that cross-cultural differences in behavior have foundations in these institutions. Tax compliance is a complex behavioral issue and its investigation requires the use of a variety of methods and data sources. Results from laboratory experiments conducted in different countries demonstrate that observed differences in tax compliance levels can be explained by differences in the fairness of tax administration, in the perceived fiscal exchange, and in the overall attitude towards the respective governments. These experimental results are shown to be robust by replicating them for the same countries using survey response measures of "tax morale." JEL classification: H260, C910
National culture and firm-level tax evasion
2011
Abstract A significant research stream provides evidence that institutional, demographic, and attitudinal factors influence the likelihood of tax evasion. Assessments of culture's role in tax evasion are far more scarce and limited. Absent are investigations of how theoretically derived culture variables predict tax evasion likelihood. Institutional anomie theory (IAT) informs this research gap, suggesting cultural values that likely influence deviant firm behaviors.
National culture and tax avoidance: a quantile regression analysis
Arab Gulf Journal of Scientific Research
PurposeThis paper aims to study the effect of Hofstede’s cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation) on corporate tax avoidance as proxied by the effective tax rate.Design/methodology/approachA sample of 944 observations during 2016 was analyzed at three different quantiles (Q 0.25, Q 0.50 and Q 0.75) based on a quantile regression approach.FindingsUsing Hofstede’s (2001) cultural dimensions (power distance, individualism, masculinity, uncertainty avoidance and long-term orientation), the authors find that individualism and masculinity are negatively associated with effective tax rates, and this negative relationship is more pronounced under low tax aggressiveness regime (third quantile). By contrast, long-term orientation is positively associated with the effective tax rate, and this relationship is more prevailing under aggressive tax regime (first quantile). These findings remain stable when using cash effectiv...
National Culture and Perceived Ethics of Tax Evasion: Case of Bali Province
Journal of Economics, Business & Accountancy Ventura, 2018
This study aims to investigate the relationship of national cculture and taxpayer's ethical perception of tax evasion. National culture dimensions include powner dinstance, uncertainty avoidance, individualism/ccollectivism, masculinity/femininity, lOng/shurt tarm orientation, and indulgence/rrestraint. This study employes survey method, using online questionnaires for taxpayers who haveself employment in Bali Province.Three hundred and seventy seven taxpayers fillend out online questionnaires. This model is processed using multiple linear regression analysis method. The results indicate that power distance, uncertainty avoidance, individualism/collectivism, and femininity/masculinity are associated with perceived ethics of tax evasion, but do not associated between short term/long term orientation and indulgence/restrain with perceived ethics of tax evasion. This study is expected to improve knowledge about tax evasion especially related to national culture. Practically, the results are expected to provide input for tax regulators to consider the role of national culture in identifying the causes of tax evasion.
The Influence of Financial Secrecy and National Culture toward Tax Compliance
Jurnal AKSI (Akuntansi dan Sistem Informasi)
Tax compliance is essential to pursue the fulfillment of countries’ tax revenue. This research aims to prove the effect of country level of financial secrecy and the resraint culture toward the tax compliance behavior. We expect that the financial secrecy would reduce the tax compliance. Furthermore, we also hypothesize that the restraint culture in a society influences tax compliance negatively. This research uses control variables i.e: democracy, tax rate, and law enforcement. By using cross-countries data of 62 countries processed by multiple regression analysis, it is concluded that financial secrecy has a negative influence toward tax compliance. Moreover, the restraint culture does not implied to have any effect on tax compliance. The findings of this research provide additional contribution as an empirical study in a global scale about the influence of financial secrecy and restraint culture on tax compliance. Based on the result, it can be recommended the government that sho...
Cogent Business & Management, 2020
The objective of this research is to present the meta-analysis results of the relationship of social norms and religiosity with tax evasion, with national culture as a moderating variable. Previous researches show mixed results of the relationship between social norms, religiosity, and tax evasion. Meta-analysis is considered a way out of saturated and inconsistent research since it provides an efficient and systematic approach to make a robust conclusion. This research synthesizes 54 results of 14 individual articles published from 1989 to 2017. This study shows three main findings. Although social norms are not effective to fight tax evasion, religiosity is a useful instrument to decrease tax evasion. Theoretically, national culture plays a pivotal role as a variable to moderate social norms with tax
Determinants of tax evasion: A cross-country investigation
Journal of International Accounting, Auditing and Taxation, 2006
The purpose of this study is to expand on the work of . Relationship between tax compliance internationally and selected determinants of tax morale. Journal of International Accounting, Auditing and Taxation, 13,[135][136][137][138][139][140][141][142][143] and systematically investigate, on a cross-country basis, many of the key determinants of tax evasion identified by Jackson and Milliron [Jackson, B. R., & Milliron, V. C. (1986). Tax compliance research: findings, problems and prospects. Journal of Accounting Literature, 5,. Based on data for 45 countries, the results of the OLS regression analysis show that non-economic determinants have the strongest impact on tax evasion. Specifically, complexity is the most important determinant of tax evasion. Other important determinants of tax evasion are education, income source, fairness and tax morale. Overall, the regression results indicate that the lower the level of complexity and the higher the level of general education, services income source, fairness and tax morale, the lower is the level of tax evasion across countries. These findings remain robust to a broad range of cross-country control variables, an alternative tax evasion measure and various interactions.