Affiliation:
1. William Douglas Brink is an Assistant Professor at Miami University and Richard A. White is a Professor at the University of South Carolina.
Abstract
ABSTRACTThis study examines whether sharing the potential tax savings and the risk of penalties associated with tax evasion with another individual affects a decision maker's willingness to evade taxes. This study also explores whether increasing the salience of potential regret from an adverse audit decreases tax evasion behavior. Using a 2 × 2 experimental design with experienced taxpayers as participants, this study finds that participants are less willing to evade taxes when they share the potential tax savings and risk of penalties with another taxpayer compared to when the reporting decision affects solely the decision maker. Supplemental analysis shows that participants feel that tax evasion is more unethical when a shared interest is present. In addition, this study demonstrates that increasing regret salience from an adverse audit decreases participants' willingness to evade taxes. This study contributes to multiple literature streams, including taxpayer compliance, ethical decision making, and decision making under risk.
Publisher
American Accounting Association
Reference51 articles.
1. Income tax evasion: A theoretical analysis;Allingham;Journal of Public Economics,1972
2. Do ethics matter? Tax compliance and morality;Alm;Journal of Business Ethics,2011
3. Estimating the determinants of taxpayer compliance with experimental data;Alm;National Tax Journal,1992
4. Selective activation and disengagement of moral control;Bandura;Journal of Social Issues,1990
5. Moral disengagement in the perpetration of inhumanities;Bandura;Personality and Social Psychology Review,1999
Cited by
15 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献