Taxpayer beliefs and views: Two new surveys

Abstract

The importance of behavioural economics in supplementing and extending the neoclassical analysis of taxpayer behaviour has been recognised for some time. This paper summarises contributions to date and outlines a way forward for integrating the behavioural and neoclassical approaches and developing a more coherent strategy of encouraging taxpayer compliance.The paper then provides significant further evidence relating to taxpayer behaviour by reporting some of the main results of two substantial surveys (N =2,040 and 2,374) of Australian citizens' beliefs, attitudes, values and motivations with respect to the tax system, widely defined. It is concluded that the behaviour of Australian taxpayers is not determined only by considerations of narrow economic rationality based on the expected financial costs and benefits of compliance or non-compliance but is also influenced by a much wider range of factors. Examination of the importance of these other factors might be the most fruitful way of improving tax compliance in the future.