| Abstract: |
Tax morale is defined as the intrinsic motivation to pay taxes, and is closely
related to tax compliance. Determinants of tax morale need to be investigated
for a more comprehensive understanding of tax compliance. In this paper,
determinants of tax morale in Turkey and Spain are analysed on the basis of
World Values Survey data. Firstly, descriptive statistics of the variables
used in the models are provided. Since tax morale is an ordered categorical
dependent variable, ordered probit models are estimated separately for Turkey
and Spain to derive the relations between tax morale and relevant variables.
Marginal effects are computed since the coefficients of the models cannot be
interpreted because of the nonlinearity of the estimated models. The marginal
effects related to the top level of tax morale category are presented. The
independent variables are combined by demographic factors, employment
categories, economic status of the respondents and social capital variables.
The findings from the estimated model suggest that social capital variables
and some of the demographic factors have important effects on tax morale in
Turkey. Confidence variables have positive effects; if taxpayers feel
confidence in political entities they are willing to pay taxes. Religion and
national pride affect tax morale positively. On the other hand, the results
are different for Spain; social capital variables do not have effects on tax
morale. Specifically, confidence variables are found to be statistically
insignificant. Age, education level and the income level have significant
effects on tax morale in Spain. |