43 results on '"Torgler, Benno"'
Search Results
2. With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy
- Author
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Torgler, Benno, Schneider, Friedrich, and Schaltegger, Christoph A.
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Tax Morale ,Shadow Economy ,Tax Compliance ,Tax Evasion ,Direct Democracy ,Local Autonomy - Abstract
Policymakers often propose strict enforcement strategies to fight the shadow economy and to increase tax morale. However, there is also a bottom-up approach: decentralizing the political power to those who are close to the problems and give them a direct political say. This paper analyses the impact of direct democracy and local autonomy on tax morale and the size of the shadow economy. We use two different data sets on tax morale at the individual level (World Values Survey and International Social Survey Programme), and macro data of the size of the shadow economy to systematically analyse the effects of institutions in Switzerland, a country where participation rights and the degree of federalism vary across different cantons. The findings suggest that direct democratic rights and local autonomy, have a significantly positive effect on tax morale and the size of the shadow economy.
- Published
- 2007
3. Trust and Tax Morale
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Chan, Ho Fai, Supriyadi, Mohammad Wangsit, Torgler, Benno, and Uslaner, Eric M., book editor
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- 2018
- Full Text
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4. The Evolution of Tax Morale in Modern Spain
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Martinez-Vazquez, Jorge and Torgler, Benno
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- 2009
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5. Is Tax Evasion Never Justifiable?
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Torgler, Benno
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- 2001
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6. National pride and tax compliance: A laboratory experiment using a physiological marker
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Macintyre, Alison, Chan, Ho Fai, Schaffner, Markus, and Torgler, Benno
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C91 ,ddc:330 ,H26 ,D91 ,National pride ,Laboratory experiment ,C88 ,Tax compliance ,Heart rate variability - Abstract
This paper reports on a laboratory experiment designed specifically to test the influence of national pride on tax honesty while using a physiological marker to observe emotional responses to patriotic priming. Participants were exposed to one of three framing videos before earning income in a real effort task, and at each of 20 rounds (years) were given the chance to declare their taxable income. We find that psychological priming through exposure to symbols of Australian national pride and national identity had a positive effect on the level of tax compliance among Australian but not non- Australians. In addition, non-Australians report lower tax compliance ratios in the treatment groups than in the control group which may indicate an outgroup effect. When exploring the potential of a physiological marker of national pride we observe two different types of physiological responses to the activation and effects of national pride and its impact on tax compliance among Australians. Iconic images activate the parasympathetic nervous system while sports scenes activate the sympathetic nervous system, but both types of images and responses are positively associated with tax compliance. In addition, we find that non-Australians resident in the country for more than a year report a higher level of tax compliance, and that there are some similarities in heart rate variability (HRV) responses between Australian citizens born in the country and those born overseas who have been in Australia for a longer period. Overall, the results support the proposition that identifying with an ingroup at a national level is important for tax compliance.
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- 2021
7. Local autonomy, tax morale, and the shadow economy
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Torgler, Benno, Schneider, Friedrich, and Schaltegger, Christoph A.
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- 2010
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- View/download PDF
8. Moral suasion: An alternative tax policy strategy? Evidence from a controlled field experiment in Switzerland
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Torgler, Benno
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- 2004
- Full Text
- View/download PDF
9. Commitment to pay taxes: Results from field and laboratory experiments
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Koessler, Ann-Kathrin, Torgler, Benno, Feld, Lars P., and Frey, Bruno S.
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C93 ,promise ,field experiment ,C91 ,commitment ,ddc:330 ,H26 ,ComputingMilieux_LEGALASPECTSOFCOMPUTING ,tax compliance ,supportive incentives ,psychological contract ,A13 - Abstract
The ability of a tax authority to collect taxes successfully depends on both its relationship with taxpayers and how strongly these taxpayers are committed to contributing to the common good. We present field and laboratory experimental evidence on a new non-intrusive approach aimed at fostering the commitment to pay taxes. Using a between-subject design in a unique field setting, we analyze whether tax compliance changes if taxpayers receive an offer to promise paying their taxes on time. Taxpayers who complied with the promise entered into a lottery with the chance of winning either a financial or a non-financial reward. Rewards were also offered in response to compliance only (i.e., without being asked to make a formal promise) allowing us to disentangle a pure reward effect from the commitment effect. As potential legal obstacles prevented us from developing a treatment that allowed for identifying whether the promise itself changes behavior, we designed and conducted a laboratory experiment to test this proposition. In the field experiment, taxpayers with a history of being compliant are more likely to make a promise. Similarly, the laboratory experiment indicates that individuals with higher tax morale are more compliant and more likely to make the promise. In addition, for all promise schemes, compliance is significantly higher for the promise-makers as compared to subjects in the control group and to those who did not make a promise. The field experiment indicates that commitment can improve payment behavior. This effect, however, is strongly dependent on the type of reward to which the promise is linked. Compliance increases only if the reward is non-financial. A no compliance effect is observed if cash is offered in return for promise fulfilment. A strong compliance effect for pure non-financial rewards was also obtained in the laboratory experiment.
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- 2018
10. Commitment to Pay Taxes: A Field Experiment on the Importance of Promise
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Koessler, Ann-Kathrin, Torgler, Benno, Feld, Lars P., and Frey, Bruno S.
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C93 ,promise ,field experiment ,commitment ,ddc:330 ,H26 ,ComputingMilieux_LEGALASPECTSOFCOMPUTING ,tax compliance ,D03 ,supportive incentives ,psychological contract ,A13 - Abstract
The ability of a tax authority to successfully collect taxes depends critically on both its relationship with the taxpayers and how strongly these taxpayers are committed to contributing to the common good. We present evidence on a new non-intrusive approach aimed at fostering the commitment to pay taxes. Using a between-subject design in a unique field setting, we experimentally test whether tax compliance can be increased by linking a voluntary promise of timely payment to a reward. We measure the change induced by an additional compliance promise through identifying the pure reward effect. We find that although previously compliant taxpayers are more likely to make a promise, the commitment to do so can improve payment behaviour. This effect, however, is strongly dependent on the type of reward to which the promise is linked. Compliance only increases when the reward is non-financial. No compliance effect is observed if cash is offered in return for promise fulfilment.
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- 2016
11. Wealthy Tax Non-Filers in a Developing Nation: The Roles of Taxpayer Knowledge, Perceived Corruption and Service Orientation in Pakistan
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Gangl, Katharina, Kirchler, Erich, Lorenz, Christian, and Torgler, Benno
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Wealthy tax non-filers ,E26 ,tax evasion ,corruption ,H26 ,O17 ,developing countries ,tax knowledge ,ddc:330 ,I30 ,tax compliance ,Pakistan ,H70 ,knowledge of rights ,tax morale - Abstract
Although tax non-filing and the resulting tax evasion are a challenge to public welfare of developing countries, scholarly knowledge on the subject is minimal. The present paper compares rich self- employed identified as non-filers with a randomized group of tax filers in terms of two bases of perceived tax system legitimacy: knowledge of taxpayers' rights and perceived corruption. The results indicate that both factors relate to tax non-filing and moreover, that perceived service orientation of the tax administration, which reduces citizens' ignorance of tax rights and doubts about authorities' correct behaviour might foster perceived legitimacy and in turn increase tax compliance.
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- 2015
12. Can Tax Compliance Research Profit from Biology?
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Torgler, Benno
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B40 ,B52 ,C63 ,biology ,tax evasion ,ddc:330 ,H26 ,tax compliance ,genetics ,D03 ,Z19 ,tax morale - Abstract
Historically, tax compliance has been a highly interdisciplinary avenue of research to which economics, psychology, law, sociology, history, political science, and accountancy have made valuable contributions. It is less well understood, however, whether we can glean useful insights into tax compliance by moving beyond the social sciences. In particular, the literature pays little attention to the relevance of biology. This paper attempts to remedy this shortcoming by examining the potential opportunities and limitations of introducing biological concepts into tax compliance research.
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- 2014
13. Effects of supervision on tax compliance: Evidence from a field experiment in Austria
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Gangl, Katharina, Torgler, Benno, Kirchler, Erich, and Hofmann, Eva
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Economics and Econometrics ,jel:C93 ,Supervision ,ComputingMilieux_LEGALASPECTSOFCOMPUTING ,Tax evasion ,tax compliance, tax evasion, field experiment, deterrence, tax enforcement, supervision ,jel:K42 ,Article ,Field experiment ,ComputingMilieux_GENERAL ,jel:H26 ,tax compliance ,tax evasion ,field experiment ,deterrence ,tax enforcement ,supervision ,Finance ,Tax compliance ,Deterrence - Abstract
We conduct a field experiment on tax compliance, focusing on newly founded firms. As a novelty the effect of tax authorities’ supervision on timely tax payments is examined. Interestingly, results show no positive overall effect of close supervision on tax compliance., Highlights • We study the impact of supervision on tax compliance with a field experiment. • We manipulate supervision through friendly deterrence. • Results suggest that supervision leads to delayed tax payments. • It is concluded that supervision causes a crowding out of intrinsic tax compliance.
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- 2013
14. A Field Experiment on Moral Suasion and Tax Compliance Focusing on Under-Declaration and Over-Deduction
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Torgler, Benno
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field experiment ,ddc:330 ,H26 ,tax compliance ,moral suasion ,H71 - Abstract
Field experiments in the area of tax compliance are rare. This field experiment generates a unique data set with respect to individuals' under-declaration of income and wealth and over-deductions of tax credits by obtaining exclusive full access to the audits. Using this commune level data from Switzerland, the paper explores the influence of moral suasion on tax compliance. Moral suasion was introduced through a treatment in which taxpayers received a letter signed by the commune's fiscal commissioner containing normative appeals. Interestingly, I observe differences between under-declaration and over-deductions. Moreover, the overall finding is in line with former results that moral suasion has hardly any effect on taxpayers' compliance.
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- 2012
15. Tax Compliance and Psychic Costs: Behavioral Experimental Evidence Using a Physiological Marker
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Dulleck, Uwe, Fooken, Jonas, Newton, Cameron, Ristl, Andrea, Schaffner, Markus, and Torgler, Benno
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psychic costs ,experiment ,K42 ,H26 ,heart rate variability ,cooperation ,biomarkers ,stress ,C91 ,ddc:330 ,H41 ,tax compliance ,D63 ,D31 ,tax morale - Abstract
Although paying taxes is a key element in a well-functioning civilized society, the understanding of why people pay taxes is still limited. What current evidence shows is that, given relatively low audit probabilities and penalties in case of tax evasion, compliance levels are higher than would be predicted by traditional economics-of-crime models. Models emphasizing that taxpayers make strategic, financially motivated compliance decisions, seemingly assume an overly restrictive view of human nature. Law abidance may be more accurately explained by social norms, a concept that has gained growing importance as a facet in better understanding the tax compliance puzzle. This study analyzes the relation between psychic cost arising from breaking social norms and tax compliance using a heart rate variability (HRV) measure that captures the psychobiological or neural equivalents of psychic costs (e.g., feelings of guilt or shame) that may arise from the contemplation of real or imagined actions and produce immediate consequential physiologic discomfort. Specifically, this nonintrusive HRV measurement method obtains information on activity in two branches of the autonomous nervous system (ANS), the excitatory sympathetic nervous system and the inhibitory parasympathetic system. Using time-frequency analysis of the (interpolated) heart rate signal, it identifies the level of activity (power) at different velocities of change (frequencies), whose LF (low frequency) to HF (high frequency band) ratio can be used as an index of sympathovagal balance or psychic stress. Our results, based on a large set of observations in a laboratory setting, provide empirical evidence of a positive correlation between psychic stress and tax compliance and thus underscore the importance of moral sentiment in the tax compliance context.
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- 2012
16. Local Autonomy, Tax Morale and the Shadow Economy
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Torgler, Benno, Schneider, Friedrich, and Schaltegger, Christoph A.
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D70 ,Tax Compliance ,Shadow Economy ,Tax Evasion ,Federalism ,Tax Morale ,Institution ,ddc:330 ,H26 ,H73 ,Local Autonomy - Abstract
Policymakers often propose strict enforcement strategies to fight the shadow economy and to increase tax morale. However, there is also a bottom-up approach such as, for example, decentralizing the political power to those who are close to the problems. Thus, this paper analyses the relationship between local autonomy and tax morale or the size of the shadow economy. We use data on tax morale at the individual level and macro data of the size of the shadow economy to systematically analyse the relevance of local autonomy and compliance in Switzerland, a country where the degree of federalism varies across different cantons. The findings suggest that there is a positive (negative) relationship between local autonomy and tax morale (size of the shadow economy).
- Published
- 2008
17. Causes and Consequences of Tax Morale: An Empirical Investigation
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Torgler, Benno and Schaffner, Markus
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tax administration ,tax evasion ,ddc:330 ,H26 ,social capital ,tax compliance ,tax system ,tax morale - Abstract
Many taxpayers truthfully declare their income to the tax administration. Why? In this paper we have found a significant correlation between tax morale and tax evasion, controlling a variety of factors. Furthermore we have analysed tax morale as dependent variable and studied the determinants that shape it. The results indicate that factors such as the tax administration, tax system, tax awareness, compliance perceptions, trust in officials and others, and the willingness to obey have a relatively strong impact on tax morale.
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- 2007
18. Tax Compliance, Tax Morale and Governance Quality
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Torgler, Benno, Schaffner, Markus, and Macintyre, Alison
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institutional and governance quality ,tax evasion ,ddc:330 ,H26 ,social capital ,tax compliance ,tax morale - Abstract
Taxpayers are more compliant than the traditional economic models predict. Why? The literature calls it the "puzzle of tax compliance". In this paper we use field, experimental and survey data to investigate the empirical evidence on whether presence of tax morale helps to resolve this puzzle. The results reveal a strong correlation between tax morale and tax evasion/compliance which confirms the value of taking the research a step further by looking at the determinants of tax morale. We explore this question with a particular focus on the importance of governance quality.
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- 2007
19. Women and Illegal Activities: Gender Differences and Women's Willingness to Comply over Time
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Torgler, Benno and Valev, Neven T.
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J16 ,gender effect ,cohort effect ,K42 ,corruption ,ddc:330 ,age effect ,tax compliance ,H10 ,bribe ,social norms - Abstract
In recent years the topics of illegal activities such as corruption or tax evasion have attracted a great deal of attention. However, there is still a lack of substantial empirical evidence about the determinants of compliance. The aim of this paper is to investigate empirically whether women are more willing to be compliant than men and whether we observe (among women and in general) differences in attitudes among similar age groups in different time periods (cohort effect) or changing attitudes of the same cohorts over time (age effect) using data from eight Western European countries from the World Values Survey and the European Values Survey that span the period from 1981 to 1999. The results reveal higher willingness to comply among women and an age rather than a cohort effect.
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- 2006
20. What shapes attitudes toward paying taxes? Evidence from multicultural European countries
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Schneider, Friedrich G. and Torgler, Benno
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Belgien ,Institutionelle Infrastruktur ,tax evasion ,H26 ,Soziale Werte ,Steuermoral ,culture ,Schweiz ,ddc:330 ,tax compliance ,Vergleich ,H73 ,tax morale ,Spanien - Abstract
Considerable evidence suggests that enforcement efforts cannot fully explain the high degree of tax compliance. To resolve this puzzle of tax compliance several researchers have argued that citizens’ attitudes toward paying taxes defined as tax morale helps to explain the high degree of tax compliance. However, most studies have treated tax morale as a black box without discussing which factors shape it. Additionally, the tax compliance literature provides little empirical research that investigates attitudes toward paying taxes in Europe. Thus, this paper is unique in its examination of citizen tax morale within three multicultural European countries, Switzerland, Belgium and Spain, a choice that allows far more detailed examination of the impact of culture and institutions using datasets from the World Values Survey and the European Values Survey.
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- 2006
21. Rewarding Honest Taxpayers? Evidence on the Impact of Rewards from Field Experiments
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Feld, Lars P., Frey, Bruno S., and Torgler, Benno
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C90 ,tax evasion ,ddc:330 ,H26 ,H41 ,positive rewards ,tax compliance ,D63 ,field experiments - Abstract
This paper analyzes the impact of rewards on tax compliance as an additional instrument to take into account. While social psychologists and neuroscientists have emphasized the importance of rewards, the tax compliance literature has strongly disregarded the possibilities of rewards. The use of field experiments presents an alternative ?carrot? strategy for tax policy. Design mechanisms to conduct a field experiments focusing on the impact of rewards on tax compliance are discussed.
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- 2006
22. Russian Attitudes Toward Paying Taxes - Before, During, and After the Transition
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Alm, James, Martinez-Vazquez, Jorge, and Torgler, Benno
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transition countries ,K42 ,ddc:330 ,H26 ,tax compliance ,social norms ,P35 ,tax morale - Abstract
This paper examines citizens' attitudes toward paying taxes - what is sometimes termed their "tax morale", or the intrinsic motivation to pay taxes - focusing on the experience of individuals in the Russian Federation. A unique aspect of our analysis is our ability to study tax morale before (1991), during (1995), and shortly after (1999) the transition of the Russian economy from a centrally planned economy to one based on market reliance. Our empirical analysis uses data from the World Values Survey and the European Values Survey. The results show decay in tax morale in the first four years of the transition from 1991 to 1995, and a small recovery in 1999. These results are consistent with the relevance of social norms in tax compliance, where the widespread perception of tax evasion and of a corrupt and inefficient state led initially to a decline of tax morale. However, the results also suggest that the restoration of a higher level of trust in the state, after some progress in the transition to a market economy, positively influenced tax morale. Using disaggregated data for Russian regions, we also find significant regional differences in tax morale, reflecting the degree of trust different regions have toward Moscow's institutions and policies.
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- 2005
23. What Shapes the Attitudes Towards Paying Taxes? Evidence from Switzerland, Belgium and Spain
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Torgler, Benno and Schneider, Friedrich
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Tax Compliance ,Tax Evasion ,Tax Morale ,ddc:330 ,H26 ,Internal and External Institutions ,H73 - Abstract
There is considerable evidence that enforcement efforts cannot fully explain the high degree of tax compliance. To resolve this puzzle of tax compliance, many researchers have argued that citizens' attitudes toward paying taxes or tax morale, seen as the intrinsic motivation to pay taxes, can help to explain the high degree of tax compliance. However, most studies treat tax morale as a black box without discussing which factors shape it. Additionally, there is a lack of empirical evidence in the tax compliance literature that investigate attitudes towards paying taxes in Europe. Thus, a unique aspect in this paper is to examine citizens' attitudes towards paying taxes in the three European countries Switzerland, Belgium and Spain, allowing thus to investigate in detailed way the impact of internal and external institutions.
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- 2005
24. Fiscal Autonomy and Tax Morale: Evidence from Germany
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Torgler, Benno and Werner, Jan
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D70 ,Tax Compliance ,Tax Morale ,Germany ,ddc:330 ,H26 ,Fiscal Autonomy ,H73 - Abstract
This paper analyses fiscal autonomy in Germany. First, it provides an overview of fiscal autonomy. What is novel in this paper compared to previous studies is the development of a fiscal autonomy coefficient for the states, based on communal data. The basic intention in the empirical part is to analyse how fiscal autonomy affects tax morale, defined as the intrinsic motivation to pay taxes, in Germany. Strong evidence has been found that a higher fiscal autonomy leads to a higher tax morale, controlling in a multivariate analysis for additional factors. Thus, this paper fills a gap in the tax compliance literature, which has rarely analysed the impact of fiscal autonomy on compliance
- Published
- 2005
25. Tax Morale and Fiscal Policy
- Author
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Torgler, Benno and Schaltegger, Christoph A.
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tax evasion ,ddc:330 ,H26 ,tax compliance ,fiscal policy ,tax morale - Abstract
ax morale has received a growing attention in academics as well as in public life. The relevance of tax morale for fiscal policy cannot be neglected as tax morale can help to explain the level of tax compliance or tax evasion. This paper gives an overview of tax morale with a special focus on Switzerland. We highlight the magnitude and the de-terminants of tax morale that have been isolated so far and discuss directions for future research in this area. In particular, we concentrate on fiscal policy implications.
- Published
- 2005
26. Patriotism's Impact on Cooperation with the State: An Experimental Study on Tax Compliance.
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Gangl, Katharina, Torgler, Benno, and Kirchler, Erich
- Subjects
- *
PATRIOTISM , *NATIONALISM , *SOCIAL capital , *FLAGS , *POLITICAL psychology - Abstract
Although it seems reasonable to assume that activating patriotism might motivate citizens to cooperate with the state in reaching societal goals, the empirical evidence supporting this contention is based mostly on correlational rather than experimental studies. In addition, little is known on whether patriotism can be manipulated without simultaneously triggering nationalism and on the psychological processes which determine the patriotism-cooperation relation. This current article reports results of one survey and three experiments that manipulate patriotism by displaying either a national flag or national landscapes or by priming national achievements. The outcomes indicate that reported and manipulated patriotism indirectly increase tax compliance, although the national flag also increases nationalism. National achievements, on the other hand, seemingly increases trust in national public institutions and the voluntary motivation to cooperate, whereas national landscapes only increase the voluntary motivation to cooperate. Hence, it is possible to increase social capital in the form of trust and cooperation through patriotism without fostering nationalism as well. [ABSTRACT FROM AUTHOR]
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- 2016
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27. Taxation and Conditional Cooperation
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Frey, Bruno S., 1941 and Torgler, Benno, 1972
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Sancions tributàries ,ddc:330 ,H26 ,Tax penalties ,tax compliance ,Tax exemption ,Frau fiscal ,Tax evasion ,pro-social behavior ,Exempció d'impostos ,D64 ,H73 ,tax morale - Abstract
Why so many people pay their taxes, although fines and audit probability are low, has become a central question in the tax compliance literature. Concepts of Homo Economicus, endowed with a more refined motivation structure, help to shed light on the tax compliance puzzle. This paper provides empirical evidence for the relevance of conditional cooperation, using survey data from 30 European countries. The findings suggest that a higher perceived tax evasion leads to a lower tax morale, also when controlling for additional factors in a multivariate analysis.
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- 2004
28. Culture Differences and Tax Morale in the United States and in Europe
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Alm, James and Torgler, Benno
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Tax Compliance ,Tax Evasion ,Tax Morale ,Culture ,ddc:330 ,H26 ,H73 - Abstract
In recent years much research has investigated whether values, social norms, and attitudes differ across countries and whether these differences have measurable effects on economic behavior. One area in which such studies are particularly relevant is tax compliance, given both the noted differences across countries in their levels of tax compliance and the marked inability of standard economic models of taxpayer compliance to explain these differences. In the face of these difficulties, many researchers have suggested that the intrinsic motivation for individuals to pay taxes - what is sometimes termed their "tax morale" - differs across countries. However, isolating the reasons for these differences in tax morale is notoriously difficult. In a common approach, studies sometimes referred to as "cultural studies" have often relied upon controlled laboratory experiments conducted in different countries because such experiments can be set up with identical experimental protocols to allow cultural effects to be isolated. In this paper we first analyze a cross-section of individuals in Spain and the United States using the World Values Survey (WVS). In line with previous experiments, our findings indicate a significantly higher tax morale in the United States than in Spain, controlling in a multivariate analysis for additional variables. We then extend our multivariate analysis to include 14 European countries in the estimations. Our results again indicate that the United States has the highest tax morale across all countries, followed by Austria and Switzerland. We also find a strong negative correlation between the size of shadow economy and the degree of tax morale in those countries.
- Published
- 2004
29. Tax Morale in Australia: What Shapes it and Has it Changed over Time?
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Torgler, Benno and Murphy, Kristina
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Tax Compliance ,Tax Evasion ,Tax Morale ,ddc:330 ,H26 ,Australia ,H73 - Abstract
Why citizens pay their taxes voluntarily is an important question for tax administrations worldwide. Some believe it is because taxpayers are deterred from tax evasion out of a fear of being caught or penalised. Others, in contrast, suggest that factors such as the level of tax morale one has (i.e., the intrinsic motivation one has to pay their tax) affects compliance behaviour. While there have been numerous empirical studies published that have explored the role of deterrence on tax compliance behaviour, very few studies have explored the concept of tax morale in any detail. This study therefore attempts to rectify this gap in the literature. If tax morale is important in determining compliance behaviour, as several researchers have suggested, then it is also important to understand what might affect one's level of tax morale. The specific aim of this paper will be to identify factors that shape or have an impact on tax morale. Using data collected from the Australian wave of the 1981 and 1995 World Values Survey, this study will demonstrate that factors such as trust and moral beliefs play an important role in shaping tax morale in Australia. Further, it will be shown that tax morale has increased significantly in Australia since the early 1980s, and that it has done so at a faster rate than many other OECD countries. Possible explanations for this increase will be discussed.
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- 2004
30. Effects of Culture on Tax Compliance: A Cross Check of Experimental and Survey Evidence
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Cummings, Ronald G., Martinez-Vazquez, Jorge, McKee, Michael, and Torgler, Benno
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Tax Compliance ,Tax Evasion ,Tax Morale ,C91 ,Culture ,ddc:330 ,H26 - Abstract
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."
- Published
- 2004
31. A Knight Without a Sword or a Toothless Tiger? The Effects of Audit Courts on Tax Morale in Switzerland
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Torgler, Benno
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D70 ,Tax Compliance ,Tax Evasion ,Tax Morale ,ddc:330 ,H26 ,Audit Courts Direct Democracy ,H73 ,Local Autonomy - Abstract
The intention of this paper is to analyse how audit courts affect tax morale, controlling in a multivariate analysis for a broad variety of potential factors. Switzerland with its variety of audit court competences among the cantons has been analysed. With data from the ISSP for 1999 evidence has been found that a higher audit court competence has a significantly positive effect on tax morale. Thus, the results in Switzerland suggest that in the cantons where audits courts are not just knights without swords or toothless tigers, they help improve taxpayers' tax morale and thus citizens' intrinsic motivation to pay taxes.
- Published
- 2004
32. Does Culture Influence Tax Morale? Evidence from Different European Countries
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Torgler, Benno and Schneider, Friedrich
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Tax Compliance ,Tax Evasion ,Tax Morale ,Culture ,ddc:330 ,H26 ,H73 - Abstract
There is considerable evidence that enforcement efforts cannot fully explain the high degree of tax compliance. Previous studies have found differences in compliance behaviour across cultures. Novel in this paper is to investigate the impact of culture differences within a country rather than between countries. Thus, the main purpose of the paper is to see how culture affects tax morale, using World Values Survey (WVS) and European Values Survey (EVS) data. The empirical findings focus individually on Switzerland, Belgium and Spain, countries with a certain cultural variety. In general, the results indicate that the cultural background seems not to have a strong effect on tax morale within a country. However, there is evidence that there is a strong interaction between culture and institutions, which has a strong impact on tax morale.
- Published
- 2004
33. Tax Morale and Institutions
- Author
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Torgler, Benno
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D70 ,Tax Compliance ,Tax Evasion ,Tax Morale ,ddc:330 ,H26 ,H73 ,Direct Democracy ,Local Autonomy - Abstract
This paper analyses the impact of direct democracy, trust in government, the court and the legal system, and federalism on tax morale. In the tax compliance literature it is novel to analyse tax morale as dependent variable and to systematically analyse the effects of formal and informal institutions in Switzerland, a country where participation rights and the degree of federalism vary across different cantons. We used two different data sets at the individual level (World Values Survey and International Social Survey Programme). The findings suggest that direct democratic rights, local autonomy, and trust in government, the court and the legal system have a significantly positive effect on tax morale.
- Published
- 2003
34. The Importance of Faith: Tax Morale and Religiosity
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Torgler, Benno
- Subjects
Tax morale ,Religiosity ,K42 ,ddc:330 ,H26 ,Tax compliance ,H73 - Abstract
The intention of this paper is to analyze religiosity as a factor that potentially affects tax morale. For this purpose, a multivariate analysis has been done with data from the World Values Survey 1995- 1997, covering more than thirty countries at the individual level. Several variables, such as church attendance, religious education, being an active member of a church or a religious organization, perceived religiosity, religious guidance and trust in the church have been analyzed. The results suggest that religiosity raises tax morale.
- Published
- 2003
35. Tax morale, Eastern Europe and European enlargement.
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Torgler, Benno
- Subjects
- *
TAXATION , *MORALE , *EUROPEAN integration , *TAXPAYER compliance , *MONETARY unions , *JUSTICE administration , *ECONOMIC policy - Abstract
This study tries to remedy the current lack of tax compliance research analyzing tax morale in 10 Eastern European countries that joined the European Union in 2004 or 2007. By exploring tax morale differences between 1999 and 2008 we show that tax morale has decreased in 7 out of 10 Eastern European countries. This lack of sustainability may support the incentive based conditionality hypothesis that European Union has only a limited ability to influence tax morale over time. We observe that events and processes at the country level are crucial to understanding tax morale. Factors such as perceived government quality, trust in the justice system and the government are positively correlated with tax morale in 2008. [ABSTRACT FROM AUTHOR]
- Published
- 2012
- Full Text
- View/download PDF
36. The importance of faith: Tax morale and religiosity
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Torgler, Benno
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TAXPAYER compliance , *EDUCATION , *MATHEMATICAL statistics , *MULTIVARIATE analysis - Abstract
Abstract: The intention of this paper is to analyze religiosity as a factor that potentially affects tax morale. For this purpose, a multivariate analysis has been done with data from the World Values Survey 1995–1997, covering more than 30 countries at the individual level. Several variables, such as church attendance, religious education, active membership in a church or a religious organization, perceived religiosity, religious guidance and trust in the church have been analyzed. The results suggest that religiosity raises tax morale. [Copyright &y& Elsevier]
- Published
- 2006
- Full Text
- View/download PDF
37. Tax morale and direct democracy
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Torgler, Benno
- Subjects
- *
DEMOCRACY , *TAXATION , *POLITICAL participation , *SOCIAL surveys - Abstract
Abstract: This paper analyses the impact of direct democracy on tax morale in Switzerland, a country where participation rights strongly vary across different cantons, using survey data from the International Social Survey Programme (ISSP) 1998. The findings suggest that direct democratic rights have a significantly positive effect on tax morale. [Copyright &y& Elsevier]
- Published
- 2005
- Full Text
- View/download PDF
38. TAX AMNESTIES AND POLITICAL PARTICIPATION.
- Author
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Torgler, Benno and Schaltegger, Christoph A.
- Subjects
TAXATION ,POLITICAL participation ,TAX collection ,PARTICIPATION ,SOCIAL participation - Abstract
In many countries, thinking about a (new) tax amnesty is currently in vogue. However international experience shows that the financial success of such a tax amnesty is not guaranteed, in pan because it is thought that tax amnesties may over time undermine tax compliance. This article conducts experiments in two different countries (Switzerland and Costa Rica) to examine the effects of amnesties on compliance. In contrast to other experiments, these experiments analyze the relationship between tax compliance and subjects' possibility to vote for or against an amnesty. The results suggest that tax compliance only increases after voting, when people get the opportunity to discuss the amnesty prior to voting. Thus, voting with discussion may induce a kind of civic duty, as taxpayers become aware of the importance of contributing to the provision of public goods. [ABSTRACT FROM AUTHOR]
- Published
- 2005
- Full Text
- View/download PDF
39. To evade taxes or not to evade: that is the question
- Author
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Torgler, Benno
- Subjects
- *
TAX evasion , *TAX laws , *CRIMINAL law , *EVASION (Law) , *FRAUD - Abstract
Tax evasion seems to be a growing problem in almost all countries. The paper analyses the possibilities and limitations of game-theoretical aspects to analyse tax evasion. However, empirical findings indicate that most people pay more taxes than the traditional economic approach would predict. Thus, it might be important to go a step back and analyse tax morale, the intrinsic motivation to pay taxes, as endogenous variable. With data from the World Values Survey (WVS), choosing Canada, strong evidence has been found that trust in government, pride, and religiosity have a systematic positive influence on tax morale. This effect tends to persist even after controlling for age, income, education, gender, marital status, employment status. [Copyright &y& Elsevier]
- Published
- 2003
- Full Text
- View/download PDF
40. Response Times and Tax Compliance.
- Author
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Chan, Ho Fai, Dulleck, Uwe, and Torgler, Benno
- Subjects
TAXPAYER compliance ,EARNED income ,EXPERIMENTAL design - Abstract
Inspired by the work of Rubinstein, this study revisits data from a previous lab experiment to explore the relation between response times and tax compliance and understand the potential non-linearity between them by classifying decisions and individuals into compliance types. We find that individuals' decision response time is related to their compliance decisions. Full-non compliant individuals (those who did not declare any earned income) have shorter response times than those who fully or partially complied. Full-compliant individuals also tend to declare income faster than partially compliant subjects. Such results are robust throughout time and when controlling for contextual characteristics of experimental design. We find non-linearity via an inverted U-shape function that reaches its maximum declaration time around a compliance rate of 60%, even after controlling for contextual experimental design factors. In addition, we observe a non-linear relation between cognitive skills, response time, and tax compliance. Participants with relatively high cognitive skills and very low or very high tax compliance level have low response times, while subjects with relatively lower cognitive skills tend to report higher decision times for higher compliance levels. [ABSTRACT FROM AUTHOR]
- Published
- 2019
- Full Text
- View/download PDF
41. The effects of increased monitoring on high wealth individuals: Evidence from a quasi-natural experiment in Indonesia.
- Author
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Chan, Ho Fai, Gangl, Katharina, Supriyadi, Mohammad Wangsit, and Torgler, Benno
- Subjects
- *
INCOME tax , *INTERNAL revenue , *EARNED income , *WEALTH , *TAXPAYER compliance , *TAX returns - Abstract
In 2009, Indonesia introduced a specialised tax office focused on High Wealth Individuals (HWIs), increasing the audit probability and monitoring of around 1200 wealthy taxpayers in Jakarta. Leveraging a quasi-natural experiment and analysing 141,097 de-identified individual tax return records between 2006 and 2012, we developed a set of counterfactuals to evaluate the post- and pre-treatment tax declarations of the monitored taxpayers relative to their synthetic control groups. Our results indicate that although post-treatment declaration of taxable and earned income, as well as income tax, increased, the effect was short-lived. The increase in reported earned income was larger relative to taxable income, suggesting that monitored individuals exerted efforts to reduce tax payments. Furthermore, we identified a comparable positive spillover effect on income declaration for non-treated taxpayers in Jakarta who met the HWI criteria. We also demonstrated that the spillover effect drastically decreased as financial characteristics (such as income and wealth) diverged from those of the targeted population. Overall, the additional tax revenue generated from this program is small in comparison to the total tax revenue collected. [ABSTRACT FROM AUTHOR]
- Published
- 2023
- Full Text
- View/download PDF
42. Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment
- Author
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Cummings, Ronald G., Martinez-Vazquez, Jorge, McKee, Michael, and Torgler, Benno
- Subjects
- *
TAXPAYER compliance , *SURVEYS , *TAXATION , *QUALITY - Abstract
Abstract: Our working hypothesis is that cross-cultural differences in tax compliance behavior have foundations in the institutions of tax administration and citizen assessment of the quality of governance. Tax compliance being a complex behavioral issue, its investigation requires use of a variety of methods and data sources. Results from artefactual field experiments conducted in countries with substantially different political histories and records of governance quality demonstrate that observed differences in tax compliance levels persist over alternative levels of enforcement. The experimental results are shown to be robust by replicating them for the same countries using survey response measures of tax compliance. [Copyright &y& Elsevier]
- Published
- 2009
- Full Text
- View/download PDF
43. Tax Morale and Conditional Cooperation
- Author
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Benno Torgler, Bruno S. Frey, University of Zurich, and Torgler, Benno
- Subjects
Economics and Econometrics ,Double taxation ,H260, H730, D640 ,tax evasion ,D640 ,H26 ,2002 Economics and Econometrics ,Audit ,jel:D64 ,Tax reform ,jel:H26 ,Microeconomics ,Tax credit ,10007 Department of Economics ,IEW Institute for Empirical Research in Economics (former) ,ddc:330 ,Economics ,Relevance (law) ,institutions ,Endogeneity ,Robustness (economics) ,Empirical evidence ,H260 ,H73 ,Public economics ,H730 ,jel:H73 ,pro-social behavior ,International taxation ,Homo economicus ,330 Economics ,Value-added tax ,Prosocial behavior ,State income tax ,Survey data collection ,tax morale ,tax compliance ,tax morale, tax compliance, tax evasion, pro-social behavior, institutions ,D64 ,Indirect tax - Abstract
Why so many people pay their taxes, even though fines and audit probability are low, is a central question in the tax compliance literature. Positing a homo oeconomicus having a refined motivation structure sheds light on this puzzle. This paper provides empirical evidence for the relevance of conditional cooperation, using survey data from 30 West and East European countries. We find a high correlation between perceived tax evasion and tax morale. The results remain robust after exploiting endogeneity and conducting several robustness tests. We also observe a strong positive correlation between institutional quality and tax mmorale. Keywords: Tax morale; Tax compliance; Tax evasion; Pro-social behavior; Institutions
- Published
- 2006
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