Public Sector Accounting and Budgeting

Public Sector Accounting and Budgeting

The effect of existing factors in governance and social institutions on tax morale: a documentary analysis approach

Document Type : Review Article

Authors
Shoeyb Rostami 1
Javad Noorbakhsh 2
1 Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 M.A. Student of Accounting, Kooshyar Higher Education Institute, Rasht, Iran
Abstract
The purpose of the current research is to conduct a systematic study and document analysis of the factors that shape tax morale. A wide range of random explanatory variables that have been identified in the literature as determinants of tax sentiment have been created with inspiration from institutional theory. In this research, a systematic review and document analysis has been done using library information available in various databases of Latin scientific articles. Finally, the statistical sample included 82 articles that analyzed the factors affecting morale and tax ethics. The findings show that the institutional theory provides a suitable theoretical basis for the discovery of tax morale. In fact, all the factors that have been identified so far as determinants of tax morale (except for social and demographic characteristics) can be classified as dependent on governing institutions (formal) or social institutions (informal). The most prominent factor is trust, which has two dimensions of positive vertical and horizontal trust related to tax morale. The result of this research is not only effective on a more accurate understanding of the influence of governance and social institutions on tax morale, but also on how governance and social institutions interact with each other and thus on tax morale. This article seeks to encourage governments to start recognizing that if the tax morale is weak, it will cause a gap between the governing and social institutions; As a result, instead of deterrence measures, it is necessary to design measures aimed at reducing this gap. 
Keywords
Tax morale
Institutional theory
Tax compliance
Horizontal and vertical trust
Governance and social institutions

Subjects

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  • Receive Date 24 September 2022
  • Revise Date 18 November 2022
  • Accept Date 19 December 2022