Study examines tax compliance behavior in small business owners

May 30, 2018

A new Applied Psychology study examines the ethical behaviours of small business owners in terms of tax compliance versus avoidance, and how internalised values and external punishment may come into play.

When researchers surveyed 330 owners or part-owners of micro-business in the UK, they found that internalised and extrinsic motivation have distinct predictors. Internalised motivation is related to strong personal moral norms to comply and a sense that the fiscal system is fair. Extrinsic motivation is related to perceptions that penalties are severe, that checks are likely, and is associated with a perceived lack of tax knowledge.

The investigators also found that, when considered together, internalised motivation but not extrinsic motivation predicts self-reported tax compliance. In addition, the presence of extrinsic motivation--although only at very high levels--may crowd out the positive effect of internalised motivation.
-end-


Wiley

Related Business Articles from Brightsurf:

3D printing -- a 'dusty' business?
3D printers are becoming increasingly popular. They can be used to create a wide variety of three-dimensional objects based on computer templates.

Business-to-business customers expect personal service in online chat
Companies engaged in business-to-business (B2B) sales are also increasingly moving their activities online, but their online chat services and customer interaction have not been studied much yet.

Entrepreneurs have different storytelling styles for presenting business
New pioneering research shows that entrepreneurs communicate to strengthen their professional image and stakeholder relationships -- and avoid blaming others.

Gender quotas in business -- how do Europeans feel?
Despite years trying to bring more women to the top boards of business, the proportion of women on the committees of companies is tiny.

Carbon dioxide capture and use could become big business
Capturing carbon dioxide and turning it into commercial products, such as fuels or construction materials, could become a new global industry, according to a study by researchers from UCLA, the University of Oxford and five other institutions.

How NASA is becoming more business friendly
A new case study demonstrates the steps being taken by the US National Aeronautics and Space Agency (NASA) to make it easier for small businesses and entrepreneurs to understand its needs and do business with it.

Finding the 'Goldilocks' level of enthusiasm for business pitches
Georgia Institute of Technology researchers found how long an entrepreneur displays the highest level of excitement during a pitch also plays a major role in predicting success in receiving funding.

Bosses who put their followers first can boost their business
Companies would do well to tailor training and recruitment measures to encourage managers who have empathy, integrity and are trustworthy -- because they can improve productivity, according to new research from the University of Exeter Business School.

Bacteria rely on classic business model
The pneumonia causing pathogen Pseudomonas aeruginosa has developed a twin-track strategy to colonize its host.

Even small gifts boost business
If a sales agent brings their customer a small gift, the customer is much more likely to make a purchase, a study by the university of Zurich has shown.

Read More: Business News and Business Current Events
Brightsurf.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.