Altering Norm Perceptions to Increase Tax Compliance

If you would like to make any comments on this working paper please contact the author directly within 90 days of publication. Disclaimer This article has been written as part of a series of publications issued from the Centre for Tax System Integrity. The views contained in this article are representative of the author only. The publishing of this article does not constitute an endorsement of or any other expression of opinion by the Australian National University or the Commissioner of Taxation of the author's opinion. The Australian National University and the Commissioner of Taxation do not accept any loss, damage or injury howsoever arising that may result from this article. This article does not constitute a public or private ruling within the meaning of the Taxation Administration Act 1953, nor is it an advance opinion of the Commissioner of Taxation. The Centre for Tax System Integrity (CTSI) is a specialised research unit set up as a partnership between the Australian National University (ANU) and the Australian Taxation Office (Tax Office) to extend our understanding of how and why cooperation and contestation occur within the tax system. This series of working papers is designed to bring the research of the Centre for Tax System Integrity to as wide an audience as possible and to promote discussion among researchers, academics and practitioners both nationally and internationally on taxation compliance. The working papers are selected with three criteria in mind: (1) to share knowledge, experience and preliminary findings from research projects; (2) to provide an outlet for policy focused research and discussion papers; and (3) to give ready access to previews of papers destined for publication in academic journals, edited collections, or research monographs. iv Abstract This study tested the effects of an intervention designed to increase compliance and honesty in work-related expenses (WRE) and other deduction claims. The research follows on from earlier work documented in Centre for Tax System Integrity (CTSI) Working Papers No. 7 and 8. Overall, the research adds further empirical support to the usefulness of such a norm-based approach to increase tax compliance, identifies possible limiting and facilitating conditions and encourages further attempts to apply such a strategy more broadly. The intervention was based on the assumption that taxpayers overestimate the level of endorsement of tax cheating among Australian taxpayers. People tend to think they themselves have more ethical views about taxpaying than they think most others …