Weitere Artikel dieser Ausgabe durch Wischen aufrufen
Tax compliance has been extensively researched. Yet, the classic question ‘why do people pay taxes?’ remains unanswered. In Jordan, tax evasion is widespread. The state and citizens have been trapped in a continuous hide-and-seek game, which has taken the form of a virtuous cycle. This paper investigates tax evasion along with the most noticeable features of the Jordanian tax system. It also highlights how the virtuous cycle of tax evasion has been established and what could possibly be a way out of it. We argue that sociocultural values are the most prominent cause for tax evasion. That is, the procedures of state formation and functionality in Jordan have created mutual distrust between the state and its citizens. Having been raised in a community characterized by deep distrust, tax evasion is no longer considered immoral by substantial numbers of the Jordanian population. We argue that successive governments need to create a high-trust-based culture and formulate strategies that serve to acquire normative ethical values in order to enhance voluntary compliance. The way to accomplish this necessity is through enforcing the state’s transparency and accountability. The taxation system needs to concentrate on income tax rather than raise tax rates on essential commodities to collect substantial tax revenues. Thus, further reform of the taxation system along with a reduction in tax incentives need to be considered. Moreover, lowering the exceptionally high personal income tax threshold would bring Jordan in line with its peers, expand the base, and introduce more progressivity. There would also be a scope to introduce a minimum tax based on sales as a tool to address tax evasion.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
(The) Economist. (1998). Jordan: The smile fades. The Economist (online), 2 July. Available from www.economist.com/node/139890.
(The) Economist. (2004). Economics focus in the shadows. The Economist (online), 19 June. Available from http://www.economist.com/node/2766310.
(The) European Commission. (2010). European neighbourhood and partnership instrument: Jordan (www). Available from http://trade.ec.europa.eu/doclib/docs/2007/october/tradoc_136445.pdf.
Abu-Nassar, M., Al-Mashaleh, M., & Al-Shahwan, F. (2003). Taxes and their accounting. In Theory and practice. Amman: Ahmed Yaseen Publication Center.
Abu-Nassar, M., & Mubaideen, U. (2000). Evasion of income tax in Jordan. Al-Manarah Journal,6(2), 11–42.
Acconcia, A., D’Amato, M., & Martina, R. (2003). Tax evasion and corruption in tax administration. Journal of Public Economics,105, 1–2.
Akdede, S. (2006). Corruption and tax evasion. Doğus Üniversitesi Dergisi,7(2), 141–149.
Alasfour, F., Samy, M., & Bampton, R. (2016). The determinants of tax morale and tax compliance: Evidence from Jordan. In Advances in Taxation (pp. 125–171). Emerald Group Publishing Limited.
Aljazeera. (2014). Document 19: 2007 Casino License Agreement between GOJ and Oasis Holdings (www). Available from: http://transparency.aljazeera.net/en/projects/jordancasinogate/20121917221578767.html.
Alkhdour, R. (2011). Estimating the shadow economy in Jordan: Causes, consequences and policy implications (Unpublished Ph.D. Thesis). Colorado State University.
Allingham, M., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics,1(3), 323–338. CrossRef
Alm, J. (1991). A perspective on the experimental analysis of taxpayer reporting. The Accounting Review,66(3), 577–593.
Alm, J. (1999). Tax compliance and administration. In W. Hildreth & J. Richardson (Eds.), Handbook on taxation. New York: Marcel Dekker.
Alm, J., Jackson, B., & McKee, M. (1992). Estimating the determinants of taxpayer compliance with experimental data. National Tax Journal,45(1), 107–114.
Alm, J., & Martinez-Vazquez, J. (2007). Tax morale and tax evasion in Latin America (www). Available from: http://icepp.gsu.edu/sites/default/files/documents/icepp/wp/ispwp0704.pdf.
Alm, J., Martinez-Vazquez, J., & Schneider, F. (2004). Sizing the problem of the hard-to-tax. Contributions to Economic Analysis,268, 11–75. CrossRef
Alm, J., & Torgler, B. (2011). Do ethics matter? Tax compliance and morality. Journal of Business Ethics,101(4), 635–651. CrossRef
Al-Naimat, S. (2013). Theoretical and analytical study of tax law in Jordan according to the income tax and sales tax and its relationship with revenues and tax evasion. International Journal of Financial Research,4(3), 107–126. CrossRef
Al-Oran, A., & Al-Khadhoor, R. (2004). Income tax evasion in Jordan: An analytical study for the period 1976–1997. Journal of Social Sciences,32(1), 31–68.
Al-Rai. (2006). Experts call for increase in tax exemptions for natural persons and elimination of prison term for tax evasion. Al-Rai [online], July 3. Available from http://www.alrai.com/article/177783.html.
Andreoni, J., Erard, B., & Feinstein, J. (1998). Tax compliance. Journal of Economic Literature,36(2), 818–860.
Asher, M. (2002). ‘Design of Tax Systems.’ In Conference on fighting corruption: Common challenges and shared experiences, Singapore, 10–11, May.
Australian Tax Office (ATO). (2011). Getting your work-related deductions right this tax time (www). Available from https://www.ato.gov.au/Media-centre/Media-releases/Teaching-tax-with-the-Tax-Files/.
Bardhan, P. (1997). Corruption and development: A review of issues. Journal of Economic Literature,35(3), 1320–1346.
Becker, J. (1996). Fostering public confidence in the tax profession: An examination of ethics and legal liability. Journal of Accounting Education,14(1), 133–140. CrossRef
Black’s Law Dictionary. (1979). Black’s law dictionary: Definitions of the terms and phrases of American and English jurisprudence, ancient and modern (5th ed.). Eagan: West Publication Co.
Bourdieu, P. (1992). Language and symbolic power. Cambridge: Polity Press.
Braithwaite, V., Reinhart, M., & Smart, M. (2010). Tax non-compliance among the under-30 s: Knowledge, obligation or scepticism? (www). Available from http://vab.anu.edu.au/present/agetax.pdf.
Casson, M. (1995). Entrepreneurship and business culture: Studies in the economics of trust (Vol. 1). Aldershot: Edward Elgar Pub.
Chapman, R. (2011). Jordan Fiscal Reform Project II. In USAID education public expenditures working paper.
Clotfelter, C. (1983). Tax evasion and tax rates: An analysis of individual returns. The Review of Economics and Statistics,65(3), 363–373. CrossRef
Cowell, F. (1985). Tax evasion with labour income. Journal of Public Economics,26(1), 19–34. CrossRef
Cowell, F. (1990). Cheating the government: The economics of evasion. Cambridge: MIT Press.
Crequeti, R., & Coppier, R. (2009). Tax revenues, fiscal corruption and “shame” costs. Economic Modelling,26(6), 1239–1244. CrossRef
Cummings, R., Martinez-Vazquez, J., McKee, M., & Torgler, B. (2009). Tax morale affects tax compliance: Evidence from surveys and an artefactual field experiment. Journal of Economic Behavior & Organization,70(3), 447–457. CrossRef
De Cremer, D., & Tyler, T. (2007). The effects of trust in authority and procedural fairness on cooperation. Journal of Applied Psychology,92(3), 639–649. CrossRef
Dhami, S., & Al-Nowaihi, A. (2007). Why do people pay taxes? Prospect theory versus expected utility theory. Journal of Economic Behavior & Organization,64(1), 171–192. CrossRef
Dixit, A., & Nalebuff, B. (1991). Making strategies credible. Strategy and Choice,2, 161–184.
Elster, J. (1989). The cement of society: A survey of social order. Cambridge: Cambridge University Press. CrossRef
Erard, B., & Feinstein, J. (1994). The role of moral sentiment and audit perceptions in tax compliance. Public Finance/Finance Publiques,49, 70–89.
Escobari, D. (2005). Tax evasion and the remuneration of tax auditors in a corrupt tax administration (www). Available from http://ssrn.com/abstract=924066.
Feld, L., & Frey, B. (2002). Trust breeds trust: How taxpayers are treated. Economics of Governance,3(2), 87–99. CrossRef
Gordon, R., & Li, W. (2009). Tax structures in developing countries: Many puzzles and a possible explanation. Journal of Public Economics,93(7), 855–866. CrossRef
Gupta, R. (2008). Tax evasion and financial repression. Journal of Economics and Business,60(6), 517–535. CrossRef
Hargreaves-Heap, S., Hollis, M., Lyons, B., Sugden, R., & Weale, A. (1992). The theory of choice: A critical guide. Oxford: Blackwell.
Hargreaves-Heap, S., & Varoufakis, Y. (2004). Game theory: A critical introduction. London: Routledge.
Heidenheimer, A., & Johnston, M. (Eds.). (2011). Political corruption: Concepts and contexts. Piscataway, NJ: Transaction Publishers.
Herzfeld, M. (1989). Anthropology through the looking-glass: Critical ethnography in the margins of Europe. Cambridge: Cambridge University Press.
Hindriks, J., Keen, M., & Muthoo, A. (1999). Corruption, extortion and evasion. Journal of Public Economics,74(3), 395–430. CrossRef
Hosmer, L. T. (1995). Trust: The connecting link between organizational theory and philosophical ethics. Academy of Management Review,20(2), 379–403.
Hull, B., & Bold, F. (1994). Hell, religion, and cultural change. Journal of Institutional and Theoretical Economics,150, 447–464.
Imam, P., & Jacobs, D. (2014). Effect of corruption on tax revenues in the middle east. Review of Middle East Economics and Finance,10(1), 1–24. CrossRef
Income and Sales Tax Department (ISTD) Jordan. (2012). Available from http://www.istd.gov.jo/ISTD/English/AboutISTD/Homepage.html.
Internal Revenue Services (IRS). (2013). Online services for individuals (www). Available from http://www.irs.gov/Individuals.
International Monetary Fund. (2014). Jordan: IMF Country Report No. 14/324. Available from https://www.imf.org/external/pubs/ft/scr/2014/cr14324.pdf.
Jackson, B., & Milliron, V. (1986). Tax compliance research: Findings, problems, and prospects. Journal of Accounting Literature,5, 125–165.
Jalili, A. (2012). The ethics of tax evasion: An Islamic perspective. In R. McGee (Ed.), The ethics of tax evasion: Perspectives in theory and practice (pp. 167–199). New York, NY: Springer Science + Business Media. CrossRef
James, S., & Alley, C. (2004). Tax compliance, self assessment and tax administration. Journal of Finance and Management in Public Services,2(2), 27–42.
Johnson, E. (2012). Corruption trends in the middle east and North Africa Region, 2007– 2011. U4 Expert Answer, Jan, No. 302.
Joulfaian, D. (2009). Bribes and business tax evasion. European Journal of Comparative Economics,6(2), 227–244.
Kasipillai, J., & Jabbar, H. (2006). Gender and ethnicity differences in tax compliance. Asian Academy of Management Journal,11(2), 73–88.
Kay, J. (1980). The anatomy of tax avoidance. In D. Collard, R. Lecomber, & M. Slater (Eds.), Income distribution: The limits of redistribution (pp. 135–148). Bristol, England: Scientechnica.
Kay, J. (1995). Foundations of corporate success: How business strategies add value. Oxford: Oxford University Press. CrossRef
Kettaneh, K. (1998). Trends of tax revenues in Jordan and effecting factors. Amman: Al-Shabab Publications.
Khasharmeh, H. (2000). A field study of the phenomenon of tax evasion among professionals in Jordan: Causes and factors that reduce evasion from the standpoint of self-employed. Al-Manarah Journal,5(1), 217–237.
Kirchler, E. (2007). The economic psychology of tax behaviour. Cambridge: Cambridge University Press. CrossRef
Kohlberg, L. (1976). Moral stages and moralization: The cognitive-developmental approach. In T. Lickona (Ed.), Moral development and behavior: Theory, research, and social issues. New York: Holt, Rinehart and Winston.
Leiker, B. H. (1998). Rousseau and the legitimacy of tax evasion. Journal of Accounting, Ethics and Public Policy,1(1), 45–57.
Levin, J., & Widell, L. (2014). Tax evasion in Kenya and Tanzania: Evidence from missing imports. Economic Modelling,39, 151–162. CrossRef
Lewis, H. (1971). Shame and guilt in neurosis. New York: International University Press.
Lewis, A. (1982). The psychology of taxation. Oxford: Martin Robertson.
Loo, E. (2006). The influence of the introduction of self- assessment on compliance behaviour of individual taxpayers in Malaysia (PhD Thesis). Australia, University of Sydney.
Malkawi, B., & Haloush, H. (2008). The case of income tax evasion in Jordan: Symptoms and solutions. Journal of Financial Crime,15(3), 282–294. CrossRef
Margalioth, Y. (2003). Tax competition, foreign direct investments and growth: Using the tax system to promote developing countries. Virginia Tax Review,23, 157–200.
Margolis, H. (1997). Religion as paradigm. Journal of Institutional and Theoretical Economics,153(1), 242–252.
Maruyama, M. (1996). Bribing in historical context: The case of Japan. Human Systems Management,15(2), 138–142.
McGee, R. (1994). Is tax evasion unethical? University of Kansas Law Review,42(2), 411–435.
Miller, G., & Smith, R. (1993). Managerial dilemmas: The political economy of hierarchy. Cambridge: Cambridge University Press.
Moore, P. W. (2004). Doing business in the middle east: Politics and economic crisis in Jordan and Kuwait. Cambridge: Cambridge University Press. CrossRef
Murtuza, A., & Ghazanfar, S. (1998). Taxation as a form of worship: Exploring the nature of Zakat. Journal of Accounting, Ethics and Public Policy,1(2), 134–161.
Nsour, M. (2014). Tax evasion in Jordan: Causes, means and size. The Jordan Times, 3 June, retrieved from: Jordantimes.com/tax-evasion-in-jordan—-causes-means-and-size. Accessed 4 July 2015.
Piolatto, A., & Rablen, M. (2014). Prospect theory and tax evasion: A reconsideration of the Yitzhaki Puzzle. In TARC working paper 13-001, Tax Administration Research Centre.
Prebble, Z., & Prebble, J. (2009). Morality of tax avoidance. The Creighton Literature Review,43, 693–749.
Ronsin, C. (2010). Wasta and state-society relations: The case of Jordan (www). Available from http://revueaverroestest.files.wordpress.com/2011/04/art-ronsin-revue-averroc3a8s-n3-repc3a8res-nov2010.pdf.
Sanyal, A. (2000). Income tax evasion and Bribe Chains (www). Available from http://researcharchive.lincoln.ac.nz/handle/10182/569.
Sanyal, A., Gang, N., & Omkar, G. (2000). Corruption, tax evasion and the Laffer curve. Public Choice,105(1–2), 61–78. CrossRef
Schneider, F. (2005). Shadow economies around the world: What do we really know? European Journal of Political Economy,21(3), 598–642. CrossRef
Schneider, F., Buehn, A., & Montenegro, C. (2010). New estimates for the shadow economies all over the world. International Economic Journal,24(4), 443–461. CrossRef
Seligson, M. (2002). The impact of corruption on regime legitimacy: A comparative study of four Latin American countries. The Journal of Politics,64(2), 408–433. CrossRef
Senge, P. (1997). The fifth discipline. Measuring Business Excellence,1(3), 46–51. CrossRef
Slemrod, J. (Ed.). (1992). Why people pay taxes, tax compliance and enforcement. Ann Arbor: University of Michigan Press.
Slemrod, J. (2007). Cheating ourselves: The economics of tax evasion. The Journal of Economic Perspectives,21(1), 25–48. CrossRef
Solomon, J. (2005). Trouble next door: In Jordan, bombs highlight changes wrought by war—Influx of Iraqis and their wealth bring growth and tension to a Key American Ally—Worries at the Textile Plant. The Wall Street Journal, November 10. Available from http://online.wsj.com/articles/SB113158821669793155.
Song, Y., & Yarbrough, T. (1978). Tax ethics and taxpayer attitudes: A survey. Public Administration Review,38(5), 442–452. CrossRef
Torgler, B. (2012). Attitudes toward paying taxes in the USA: An empirical analysis the ethics of tax evasion. In R. McGee (Ed.), The ethics of tax evasion: Perspectives in theory and practice (pp. 269–283). New York, NY: Springer. CrossRef
Torgler, B., & Schaltegger, C. (2006). Tax morale: A survey with a special focus on Switzerland. Swiss Journal of Economics and Statistics,142(3), 395–425.
Tsoukas, H., & Papoulias, D. (1996). Understanding social reforms: A conceptual analysis. Journal of the Operational Research Society,47(7), 853–863. CrossRef
Watzlawick, P., Weakland, J., & Fisch, R. (2011). Change: Principles of problem formation and problem resolution. New York: WW Norton & Company.
Wittgenstein, L. (1958). Philosophical investigations. Oxford: Blackwell.
Wittgenstein, L. (2010). Philosophical investigations. Oxford: Blackwell.
- Costs of Distrust: The Virtuous Cycle of Tax Compliance in Jordan
- Springer Netherlands
- Journal of Business Ethics
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
Neuer Inhalt/© Stellmach, Neuer Inhalt/© BBL, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, Neuer Inhalt/© hww, Wissenstransfer im Outsourcing/© WrightStudio | stock.adobe.com