The effect of personality traits and tax morale on tax evasion intention
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Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Journal of Financial Crime
Abstract
Purpose: This paper aims to explore the relationship among personality traits, tax morale and tax evasion
intention of students. Using the five-factor model of personality ratings, this study hypothesizes that
agreeableness, openness to experience, conscientiousness, extraversion and neuroticism are good predictors
of both tax morale and tax evasion intentions of individuals. Further, this paper argues that tax morale
correlates negatively with tax evasion intention.
Design/methodology/approach – A survey method was adopted and questionnaires were developed to
elicit responses for the study. The study hypotheses were tested structurally using the partial least squares structural equation modelling technique.
Findings: The results of the study demonstrate the existence of a positive and statistically significant
relationship between three dimensions of the personality traits (agreeableness, conscientiousness and
openness to experience) and tax morale. Consistent with expectations, the study also finds tax morale to be
significant and negatively associated with tax evasion intention.
Research limitations and implications: This study concludes from the findings that improving the tax
morale of individuals could be an important way by which tax authorities can improve voluntary tax
compliance and reduce the incidence of tax evasion by individuals.
Originality/value: The study uses all the dimensions of the five-factor model to examine tax evasion
intention of individuals. It also contributes to the theoretical literature by highlighting the mediating role of
tax morale in the relationship between personality traits and tax evasion intention from an African
perspective.
Description
Research Article
Keywords
Structural equation modelling, Personality traits, Tax evasion intention