Does the sole description of a tax authority affect tax evasion?--the impact of described coercive and legitimate power.

ABSTRACT: Following the classic economic model of tax evasion, taxpayers base their tax decisions on economic determinants, like fine rate and audit probability. Empirical findings on the relationship between economic key determinants and tax evasion are inconsistent and suggest that taxpayers may rather rely on their beliefs about tax authority's power. Descriptions of the tax authority's power may affect taxpayers' beliefs and as such tax evasion. Experiment 1 investigates the impact of fines and beliefs regarding tax authority's power on tax evasion. Experiments 2-4 are conducted to examine the effect of varying descriptions about a tax authority's power on participants' beliefs and respective tax evasion. It is investigated whether tax evasion is influenced by the description of an authority wie

SUBMITTER: Hartl B 

PROVIDER: S-EPMC4414547 | biostudies-literature | 2015

REPOSITORIES: biostudies-literature