Shared subjective views, intent to cooperate and tax compliance: Similarities between Australian taxpayers and tax officers

• Published in: Journal of economic psychology Vol. 27; no. 4; pp. 502 - 517
• Main Authors: Kirchler, Erich, Niemirowski, Apolonia, Wearing, Alexander
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.08.2006; Elsevier Science; Elsevier; Elsevier Sequoia S.A
• Series: Journal of Economic Psychology
• Subjects: Advertising. Marketing. Consume behavior; Applied psychology; Biological and medical sciences; Compliance; Cooperation; Fundamental and applied biological sciences. Psychology; Psychology. Psychoanalysis. Psychiatry; Psychology. Psychophysiology; Shared views taxpayers–tax officials; Studies; Subjective views; Tax compliance; Tax evasion; Taxpayers; Australia; Oceania; 2900; Shared views taxpayers–tax officials; Tax compliance; H26; Tax evasion; Subjective views; Human; Levy; Subjective evaluation
• ISSN: 0167-4870; 1872-7719
• DOI: 10.1016/j.joep.2006.01.005

The present study investigates how taxation is represented in the minds of Australian taxpayers and tax officers and whether shared beliefs and evaluations are related to taxpayer compliance. Shared tax views are assumed to facilitate positive interaction, and mutual satisfactory interaction to enhance taxpayers’ willingness to cooperate and comply. The sample comprised 292 compliant taxpayers, 547 non-compliant taxpayers identified by the Australian Tax Office (ATO), and 358 ATO officers who had direct contact with taxpayers. Shared perceptions were measured as similarity in beliefs and evaluations of tax law complexity, tax mentality, ethics and social norms, horizontal and vertical distributive fairness and fair exchange with the government, attitudes towards the government, and judgments of tax officers and tax preparers’ support. The ATO reported non-compliance was found to be related to respondents’ willingness to cooperate (i.e., filing timely and correctly) which, in turn, was related to respondents’ beliefs and evaluation of tax issues and their shared views on these issues. Willingness to cooperate appears to function as a mediator between tax compliance and taxpayer’s beliefs and evaluations as well as shared tax officials’ and taxpayers’ views.