Tax Compliance Models: From Economic to Behavioral Approaches
<p>The paper reviews the models of tax compliance with an emphasis on economic and behavioral perspectives. Although the standard tax evasion model of Allingham and Sandmo and other similar economic models capture some important aspects of tax compliance (i.e., taxpayers’ response to increases...
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| Format: | Article |
| Language: | English |
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Babes-Bolyai University, Cluj-Napoca
2012-06-01
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| Series: | Transylvanian Review of Administrative Sciences |
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| Online Access: | https://rtsa.ro/tras/index.php/tras/article/view/58 |
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| _version_ | 1839641031877853184 |
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| author | Larissa Margareta BĂTRÂNCEA Ramona Anca NICHITA Ioan BĂTRÂNCEA Bogdan Andrei MOLDOVAN |
| author_facet | Larissa Margareta BĂTRÂNCEA Ramona Anca NICHITA Ioan BĂTRÂNCEA Bogdan Andrei MOLDOVAN |
| author_sort | Larissa Margareta BĂTRÂNCEA |
| collection | DOAJ |
| description | <p>The paper reviews the models of tax compliance with an emphasis on economic and behavioral perspectives. Although the standard tax evasion model of Allingham and Sandmo and other similar economic models capture some important aspects of tax compliance (i.e., taxpayers’ response to increases in tax rate, audit probability, penalty rate) they do not suffice the need for an accurate prediction of taxpayers’ behavior. The reason is that they do not offer a comprehensive perspective on the sociological and psychological factors which shape compliance (i.e., attitudes, beliefs, norms, perceptions, motivations). Therefore, the researchers have considered examining taxpayers’ inner motivations, beliefs, perceptions, attitudes in order to accurately predict taxpayers’ behavior. As a response to their quest, behavioral models of tax compliance have emerged. Among the sociological and psychological factors which shape tax compliance, the ‘slippery slope’ framework singles out trust in authorities and the perception of the power of authorities. The aim of the paper is to contribute to the understanding of the reasons for which there is a need for a tax compliance model which incorporates both economic and behavioral features and why governments and tax authorities should consider these models when designing fiscal policies.</p> |
| format | Article |
| id | doaj-art-40aa094df1fb4dd989542f67c61b2d1c |
| institution | Matheson Library |
| issn | 1842-2845 |
| language | English |
| publishDate | 2012-06-01 |
| publisher | Babes-Bolyai University, Cluj-Napoca |
| record_format | Article |
| series | Transylvanian Review of Administrative Sciences |
| spelling | doaj-art-40aa094df1fb4dd989542f67c61b2d1c2025-07-03T07:31:27ZengBabes-Bolyai University, Cluj-NapocaTransylvanian Review of Administrative Sciences1842-28452012-06-01836132674Tax Compliance Models: From Economic to Behavioral ApproachesLarissa Margareta BĂTRÂNCEA0Ramona Anca NICHITA1Ioan BĂTRÂNCEA2Bogdan Andrei MOLDOVAN3Lecturer, Department of Business, Faculty of Business, Babeş-Bolyai University, Cluj-Napoca, RomaniaPhD Candidate, Department of Finance, Faculty of Economics and Business Administration, Babeş-Bolyai University, Cluj-Napoca, RomaniaProfessor, Department of Finance, Faculty of Economics and Business Administration, Babeş-Bolyai University, Cluj-Napoca, RomaniaTeaching Assistant, Public Administration Department, Faculty of Political, Administrative and Communication Sciences, Babeş-Bolyai University, Cluj-Napoca, Romania<p>The paper reviews the models of tax compliance with an emphasis on economic and behavioral perspectives. Although the standard tax evasion model of Allingham and Sandmo and other similar economic models capture some important aspects of tax compliance (i.e., taxpayers’ response to increases in tax rate, audit probability, penalty rate) they do not suffice the need for an accurate prediction of taxpayers’ behavior. The reason is that they do not offer a comprehensive perspective on the sociological and psychological factors which shape compliance (i.e., attitudes, beliefs, norms, perceptions, motivations). Therefore, the researchers have considered examining taxpayers’ inner motivations, beliefs, perceptions, attitudes in order to accurately predict taxpayers’ behavior. As a response to their quest, behavioral models of tax compliance have emerged. Among the sociological and psychological factors which shape tax compliance, the ‘slippery slope’ framework singles out trust in authorities and the perception of the power of authorities. The aim of the paper is to contribute to the understanding of the reasons for which there is a need for a tax compliance model which incorporates both economic and behavioral features and why governments and tax authorities should consider these models when designing fiscal policies.</p>https://rtsa.ro/tras/index.php/tras/article/view/58tax complianceeconomic model of tax compliancebehavioral model of tax complianceincome tax evasion‘slippery slope’ framework. |
| spellingShingle | Larissa Margareta BĂTRÂNCEA Ramona Anca NICHITA Ioan BĂTRÂNCEA Bogdan Andrei MOLDOVAN Tax Compliance Models: From Economic to Behavioral Approaches Transylvanian Review of Administrative Sciences tax compliance economic model of tax compliance behavioral model of tax compliance income tax evasion ‘slippery slope’ framework. |
| title | Tax Compliance Models: From Economic to Behavioral Approaches |
| title_full | Tax Compliance Models: From Economic to Behavioral Approaches |
| title_fullStr | Tax Compliance Models: From Economic to Behavioral Approaches |
| title_full_unstemmed | Tax Compliance Models: From Economic to Behavioral Approaches |
| title_short | Tax Compliance Models: From Economic to Behavioral Approaches |
| title_sort | tax compliance models from economic to behavioral approaches |
| topic | tax compliance economic model of tax compliance behavioral model of tax compliance income tax evasion ‘slippery slope’ framework. |
| url | https://rtsa.ro/tras/index.php/tras/article/view/58 |
| work_keys_str_mv | AT larissamargaretabatrancea taxcompliancemodelsfromeconomictobehavioralapproaches AT ramonaancanichita taxcompliancemodelsfromeconomictobehavioralapproaches AT ioanbatrancea taxcompliancemodelsfromeconomictobehavioralapproaches AT bogdanandreimoldovan taxcompliancemodelsfromeconomictobehavioralapproaches |