Size, Causes and Consequences of the Underground Economy

Chapter 3Explaining Taxpayer Non-Compliance through Reference to Taxpayer Identities: A Social Identity Perspective

Natalie Taylor

Introduction

Despite an abundance of research over several decades into the reasons for taxpayer non-compliance, researchers, practitioners and policymakers around the world are still trying to grapple with the issue of how to improve taxpayer compliance. In countries where voluntary self-reporting of tax obligations is encouraged, particularly where computerised tracking of income may be limited, voluntary and truthful reporting of income and legitimate deductions is an important component to ensuring that tax systems remain viable and continue to function appropriately. Tax systems after all are the foundations ...