Horodnic, I.A. (2018) Tax morale and institutional theory: a systematic review. International Journal of Sociology and Social Policy, 38 (9/10). pp. 868-886. ISSN 0144-333X
Abstract
Purpose
The purpose of this paper is to conduct a systematic review of the factors that shape tax morale. A large range of random explanatory variables identified in the literature as determinants of tax morale are synthesised and structured by drawing inspiration from the institutional theory. Design/methodology/approach
To do this, a systematic search has been conducted using a library catalogue which provides access to more than 400 databases. Findings
The finding is that the institutional theory provides a suitable theoretical basis to explore tax morale. Indeed, all the factors until now identified as determinants of tax morale (except the control variables/socio-demographic characteristics) can be categorised either as belonging to formal institutions or to informal institutions. The most salient factor is trust, with both vertical and horizontal trust positively related to tax morale. Research limitations/implications
The outcome is a call for a more nuanced understanding of not only the effect of formal and informal institutions on tax morale but also how formal and informal institutions interact and alter each other and, consequently, affect tax morale. Practical implications
The paper seeks to encourage governments to start recognising that as low tax morale arises when a gap exists between formal and informal institutions, they need to design policy measures aimed to reduce this gap, rather than persisting with deterrence measures. Originality/value
This is the first systematic review of the factors that influence tax morale using an institutionalist lens.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © Ioana Alexandra Horodnic 2018. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial & non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode |
Keywords: | Informal institutions; Tax compliance; Formal institutions; Tax morale; Horizontal trust; Vertical trust |
Dates: |
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Institution: | The University of Sheffield |
Academic Units: | The University of Sheffield > Faculty of Social Sciences (Sheffield) > Management School (Sheffield) |
Funding Information: | Funder Grant number EUROPEAN COMMISSION - HORIZON 2020 746358 |
Depositing User: | Symplectic Sheffield |
Date Deposited: | 20 Apr 2018 13:12 |
Last Modified: | 22 Oct 2018 09:32 |
Published Version: | https://doi.org/10.1108/IJSSP-03-2018-0039 |
Status: | Published |
Publisher: | Emerald |
Refereed: | Yes |
Identification Number: | 10.1108/IJSSP-03-2018-0039 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:129774 |