Market competition, fairness and tax compliance: The formal sector perspective

Procedural Fairness and Tax Compliance.

In the traditional deterrence approach, taxpayers were considered as purely self-interested rational agents (Allingham & Sandmo 1972), and consequently, compliance was enforced by measures such as audits and sanctions. In the late nineties, a new method of regulation was proposed. This approach, the responsive regulation (Ayres & Braithwaite 1992), integrated the various measures to ensure comp...

Tax Competition, Capital Mobility, and Innovation in the Public Sector

The paper analyses the impact of tax competition on innovation in the public sector. It is shown that the effects of increased mobility of the tax base on innovation and growth are ambiguous. The negative relationship is more likely, however. Moreover, it is shown that a Leviathan government may be induced to spend a larger share of its budget on unproductive activities. JEL codes: H21, H7, O31...

Tax Compliance, Tax Compliance, Tax Morale, and Governance Quality

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 t...

Ranking Effective Behavioural Factors Affecting Non –compliance in Business Tax from the Professional Perspective

The country's tax system has always faced many challenges in the business sector, and various factors have caused lack of tax compliance in this sector. In this research, the identification and ranking of effective behavioural factors affecting non-compliance of business tax has been pursued with the aim[1] of answering the question that " what are the most important factors affecting the non-c...

Competition between Microfinance Institutions and the Formal Banking Sector