Policy Research

An Empirical Analysis of Taxpayers Perceptions of Tax Related Media Coverage and its Impact on Tax Compliance

Matthias Kasper, Christoph Kogler, Erich Kirchler

Summary

The article examines the effect of tax related media on consumers trust in government and also on their perceived power of the government to enforce tax policy. It then looks further at the effect media has on overall tax compliance rate. The study ultimately concludes that tax related media has a significant effect on perceptions and tax compliance rates, and that negative media exposure decreases compliance. It was also found that perceived complexity of a tax system further decreases compliance rates.

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Policy Implications

This article can be useful in attempting to further raise revenues via increasing tax compliance rates. The study posits that putting out positive media related to the tax system has a positive effect on compliance rates. It was also discovered that increasing education about the tax system in schooling years further increases compliance. Further the study found that any method of increasing transparency in the tax system promoted trust and compliance.