Factors Influencing Individual Taxpayer Compliance Behaviour

Ken Devos

Factors Influencing Individual Taxpayer Compliance Behaviour

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ISBN 978-94-007-7475-9 ISBN 978-94-007-7476-6 (eBook)DOI 10.1007/978-94-007-7476-6Springer Dordrecht Heidelberg London New York

Library of Congress Control Number: 2013948878

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Ken DevosBusiness Law and Taxation Faculty of Business and EconomicMonash UniversityMelbourneVictoriaAustralia

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Acknowledgments

This study has benefited from the assistance of particular individuals and organi-sations. Initially thanks goes to the market research company, Newton Wayman Chong & Associates Pty Ltd (NWC), for their assistance in sourcing a sample of taxpayers from the general population in 2006. Particular thanks are also exten-ded to Assistant Commissioner Chris Mobbs from the Australian Taxation Office (ATO), for his involvement and assistance in sourcing the tax evader sample via the data bases of the ATO in 2007. I would also like to acknowledge the taxpayers who gave their time both in completing surveys and taking part in interviews during the course of the study. Finally, the Australian Tax Research Foundation for the financial funding towards part of the study (including a research grant) with respect to accessing the ATO data and employing two research assistants in the input and transcription of the data.

I would also thank my family for their support during the years of the book’s production.

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Legislation

Income Tax Assessment Act 1936 (ITAA 1936)

Income Tax Assessment Act 1997 (ITAA 1997)

Tax Administration Act 1953 (TAA 1953)

Crimes Act 1914 (Cth)

Crimes Taxation Offences Act 1980

Criminal Code Act (1995)

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Contents

1 Introduction and Background .................................................................. 11.1 Introduction ......................................................................................... 11.2 Background and History ..................................................................... 2

1.2.1 History ..................................................................................... 21.2.2 Impact of Non-Compliance ..................................................... 21.2.3 Australian Government Response to Non-Compliance .......... 3

1.3 Definition of Tax Compliance and Selected Tax Compliance Variables ................................................................... 41.3.1 Definition of Tax Compliance ................................................. 41.3.2 Selected Tax Compliance Variables ........................................ 5

1.4 Research Objective and Specific Research Questions ........................ 81.4.1 Research Objective.................................................................. 81.4.2 Research Questions ................................................................. 9

1.5 Overview and Structure ....................................................................... 101.6 Conclusion .......................................................................................... 12

2 Tax Compliance Theory and the Literature ............................................ 132.1 Introduction ......................................................................................... 132.2 Tax Compliance Theories .................................................................... 14

2.2.1 Economic Deterrence Model................................................... 152.2.2 Fiscal and Social Psychology Models ..................................... 20

2.3 Tax Compliance Studies on the Variables of interest .......................... 282.3.1 Tax Morals ............................................................................... 282.3.2 Tax Fairness/Equity ................................................................. 392.3.3 Deterrence Measures ............................................................... 49

2.4 Conclusion........................................................................................... 62

3 Extension of the Economic Deterrence Model ........................................ 673.1 Introduction ......................................................................................... 673.2 The Definition and Nature of Deterrence ............................................ 68

3.2.1 Definition of Deterrence ......................................................... 683.2.2 Nature of Deterrence ............................................................... 69

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3.3 The Rationale for Deterrence .............................................................. 713.3.1 Ethical and Moral Aspects: Philosophy .................................. 723.3.2 The Economic Aspect ............................................................. 733.3.3 The Political Aspect ................................................................ 74

3.4 Features of the Basic Economic Deterrence Model ............................ 763.4.1 The “Economic Deterrence” Approach ................................... 76

3.5 Major Variables Employed within the Basic Economic Deterrence Model ............................................................... 783.5.1 Penalties and Sanctions ........................................................... 783.5.2 Sentencing—The Probability of Imposition

of Penalties and Sanctions ....................................................... 803.5.3 Probability of Detection and Audit Rate ................................. 823.5.4 Tax Rate ................................................................................... 843.5.5 Income Level ........................................................................... 843.5.6 Complexity .............................................................................. 85

3.6 The Rationale for including Additional Compliance Variables in an Extended Economic Deterrence Model ...................... 863.6.1 Demographic Variables ........................................................... 873.6.2 Personal/Internal Factors-Morals ............................................ 943.6.3 Situational/External Factors .................................................... 95

3.7 Limitations of the Extended Economic Deterrence Model ................. 973.8 Conclusion........................................................................................... 98

4 Theoretical Framework and Hypotheses Development ......................... 994.1 Introduction ......................................................................................... 994.2 Theoretical Framework ....................................................................... 99

4.2.1 Tax Morals/Ethics ................................................................... 1004.2.2 Equity and Fairness ................................................................. 1024.2.3 Deterrence Measures ............................................................... 103

4.3 Proposed Findings and Tax Policy Implications ................................. 1044.4 Development of Hypotheses ............................................................... 104

4.4.1 Identification of the Research Problem ................................... 1044.4.2 Primary Research Questions ................................................... 1064.4.3 Secondary Research Questions ............................................... 1094.4.4 Descriptive Research Questions .............................................. 109

4.5 Conclusion........................................................................................... 110

5 Quantitative Analysis of Research Findings—Evader Sample ......................................................................... 1195.1 Introduction ......................................................................................... 1195.2 Demographic Profile of the Evader Sample ........................................ 1205.3 Descriptive Analysis of the Evader Sample ........................................ 1215.4 Data Analysis of the Evader Sample ................................................... 131

5.4.1 Chi-Square Test Results .......................................................... 1325.4.2 Logistic Regression ................................................................. 135

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5.4.3 Multinomial Logistic Regression ............................................ 1365.4.4 Factor Analysis ........................................................................ 1365.4.5 Analysis of the Multinomial Logistic Regression ................... 1435.4.6 Logistic Regression Analysis and Interpretation..................... 145

5.5 Conclusion........................................................................................... 155

6 Qualitative Analysis of Research Findings—Evader Sample ......................................................................... 1596.1 Introduction ......................................................................................... 1596.2 Overview of Thematic Framework Analysis—Stage One .................. 1596.3 Findings and Implications from the Interview

Themes- Stages Two to Four ............................................................... 1606.3.1 Tax Awareness ......................................................................... 1606.3.2 Tax Fairness ............................................................................. 1616.3.3 Tax Morals ............................................................................... 1636.3.4 Tax Law Enforcement and the Probability of Detection ......... 1656.3.5 Deterrence/Penalties ................................................................ 1676.3.6 Tax Evaders’ Concluding Comments ...................................... 169

6.4 Mapping and Interpretation of the Data Using Pattern Matching—Stage Five .................................................. 1706.4.1 Tax Complexity ....................................................................... 1706.4.2 Tax Awareness ......................................................................... 1716.4.3 Tax Fairness ............................................................................. 1716.4.4 Tax Morals ............................................................................... 1726.4.5 Tax Law Enforcement and the Probability of Detection ......... 1736.4.6 Procedural Justice.................................................................... 1746.4.7 Penalties .................................................................................. 1746.4.8 Negligence of Tax Agents ....................................................... 176

6.5 Summary of Findings Regarding the Main Compliance Variables of Interest and Research Questions Posed ........................... 1766.5.1 Tax Fairness ............................................................................. 1776.5.2 Tax Morals ............................................................................... 1776.5.3 Deterrence Measures ............................................................... 178

6.6 Analysis of a Selection of Respondents’ Survey Comments............... 1806.7 Review of the Quantitative and Qualitative Components

of the Research—Evader Sample ........................................................ 1836.8 Conclusion........................................................................................... 186

7 Quantitative Analysis of Research Findings—General Population Sample.................................................... 1897.1 Introduction ......................................................................................... 1897.2 Demographic Profile of the General Population Sample .................... 1897.3 Descriptive Analysis of the General Population Sample .................... 1907.4 Data Analysis of the General Population Sample ............................... 199

7.4.1 Chi-Square Test Results .......................................................... 199

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7.4.2 Logistic Regression ................................................................. 2027.4.3 Binary Logistic Regression ..................................................... 2027.4.4 Factor Analysis ........................................................................ 2037.4.5 Binary Logistic Regression Analysis and Interpretation ......... 2077.4.6 Conclusion............................................................................... 223

8 Qualitative Analysis of Research Findings—General Population ................................................................. 2258.1 Introduction ......................................................................................... 2258.2 Overview of Thematic Framework Analysis

Stage One ............................................................................................ 2258.3 Findings and Implications from Interview

Themes—Stages Two to Four ............................................................. 2268.3.1 Tax Awareness ......................................................................... 2268.3.2 Tax Fairness ............................................................................. 2278.3.3 Tax Morals ............................................................................... 2298.3.4 Tax Law Enforcement and the Probability of Detection ......... 2308.3.5 Deterrence/Penalties ................................................................ 2328.3.6 Taxpayers’ Concluding Comments ......................................... 233

8.4 Mapping and Interpretation of the Data Using Pattern Matching—Stage Five ............................................................ 2338.4.1 Tax Complexity ....................................................................... 2348.4.2 Tax Awareness ......................................................................... 2348.4.3 Tax Fairness ............................................................................. 2358.4.4 Tax Morals ............................................................................... 2368.4.5 Tax Law Enforcement and the Probability of Detection ......... 2378.4.6 Penalties .................................................................................. 237

8.5 Summary of the Findings regarding the Main Compliance Variables of Interest and Research Questions Posed ........................... 2398.5.1 Tax Fairness ............................................................................. 2398.5.2 Tax Morals ............................................................................... 2398.5.3 Deterrence Measures ............................................................... 240

8.6 Review of the Quantitative and Qualitative Components of the Research—General Population Sample .................................... 242

8.7 Conclusion........................................................................................... 244

9 Further Statistical Testing and a Comparative Analysis of the Evader and General Population Samples ..................................... 2479.1 Introduction ......................................................................................... 2479.2 Statistical Analysis of the Two Samples with Respect to the

Additional Primary Research Questions PRQ7-PRQ21 ..................... 2489.2.1 Statistical Analysis of Additional Primary Research

Questions ................................................................................. 2489.2.2 Significant Chi-Square Results ............................................... 248

Contents

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9.3 Statistical Analysis of the Two Samples with Respect to the Secondary Research Questions SRQ1-1 to SRQ8-7 ................. 2629.3.1 Statistical Analysis of the Secondary Research

Questions—Demographic Variables ....................................... 2629.3.2 Significant Chi-Square Results ............................................... 263

9.4 Comparative Analysis of the Two Taxpayer Samples Employing Mann–Whitney U Tests ..................................... 2739.4.1 Mann–Whitney U Test ............................................................ 2739.4.2 Significant Mann–Whitney Results for the Primary

Research Questions PRQ1-PRQ6 ........................................... 2749.4.3 Significant Mann–Whitney Results for the

Secondary Research Questions SRQ1 to SRQ8...................... 2789.5 Summary of the Significant Findings Regarding

the Main Compliance Variables of Interest ......................................... 2839.5.1 Tax Fairness ............................................................................. 2839.5.2 Tax Morals ............................................................................... 2849.5.3 Deterrence Measures ............................................................... 284

9.6 Summary of the Significant Findings Regarding the Demographic Variables ................................................................. 2859.6.1 Gender ..................................................................................... 2859.6.2 Age .......................................................................................... 2869.6.3 Occupation .............................................................................. 2869.6.4 Ethnicity .................................................................................. 2869.6.5 Income Level ........................................................................... 2879.6.6 Location................................................................................... 2879.6.7 Education Level ...................................................................... 2879.6.8 Return Lodgement ................................................................... 288

9.7 Summary of the Findings Regarding the Statistically Significant Differences between the Two Taxpayer Groups and the Typology of a Tax Evader ....................................................... 289

9.8 Conclusion........................................................................................... 290

10 Conclusion ................................................................................................ 29310.1 Introduction ....................................................................................... 29310.2 Overview and Summary of the Major Findings ................................ 293

10.2.1 Overview of the Study ........................................................ 29310.2.2 Major Findings of the Study ............................................... 295

10.3 Tax Policy Implications ..................................................................... 29910.3.1 Tax Morals ........................................................................... 29910.3.2 Tax Fairness ......................................................................... 30010.3.3 Deterrence Measures ........................................................... 301

10.4 Limitations ........................................................................................ 30410.5 Future Directions and Research ........................................................ 305

Appendix ........................................................................................................... 307

Contents

List of Acronyms

ABN Australian Business NumberACC Australian Crime CommissionAFP Australian Federal PoliceALRC Australian Law Reform CommissionANAO Australian National Audit OfficeANU Australian National UniversityATO Australian Taxation OfficeATRF Australian Tax Research FoundationBAS Business Activity StatementsCGT Capital Gains TaxCHFA Community Hopes, Fears and ActionsCTSI Centre for Tax System IntegrityEIC Earned Income CreditGC Gini CoefficientGST Goods and Services TaxHK Hong KongIRD Inland Revenue DepartmentIRS Inland Revenue ServiceKMO Kaiser-Meyer-OlkinMRD Minnesota Department of RevenueNWC Newton Wayman Chong & Associates Pty LtdNZ New ZealandOECD Organisation for Economic Co-operation and DevelopmentOR Odds RatioPANAS Positive and Negative Affect ScalePAYG Pay-As-You-GoPCA Principal Component AnalysisSPSS Statistical Package for Social SciencesTCMP Taxpayer Compliance Measurement ProgramTFN Tax File NumberTPB Theory of Planned BehaviourTRA Theory of Reasoned Action

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xvi List of Acronyms

TRF Taxpayers Research FoundationUK United KingdomUSA United States of AmericaWVS World Values Survey

List of Figures

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Fig. 2.1 Strumpel’s model of tax compliance (1969) (Hessing et al. 1988, pp. 517–536, 526, cited in Smart 1999, p. 13; see also Strumpel 1969)

Fig. 2.2 Theory of reasoned action (TRA) adopted from Ajzen and Fishbein (1980) (See Lewis 1982). ( Broken Arrow Possible explanations for observed relations between external variables and behaviour, Unbroken Arrow Stable theoretical relations linking beliefs to behaviour)

Fig. 3.1 Examination of Six Variables of the Economic Deterrence ModelFig. 3.2 Additional Compliance Variables in an Extended Economic Deterrence

ModelFig. 3.3 Impact of Deterrence Measures upon Influential Taxpayers

Fig. 4.1 Theoretical frameworkFig. 4.2 Diagrammatic representation of the variables examinedFig. 4.3 Diagrammatic representation of the research problem (Source: Adapted

from a version presented in McKerchar (2003, p. 96))

Fig. 5.1 Logistic modelFig. 5.2 Logistic formula 1Fig. 5.3 Logistic model—outcomesFig. 5.4 Logistic formula—probabilitiesFig. 5.5 Scree plot—Q2/tax awarenessFig. 5.6 Scree Plot—Q12 tax law enforcement and Q11 probability of

detection Fig. 5.7 Q12 positive tax law enforcement—(E2)Fig. 5.8 Q11 probability of detection—(PD)Fig. 5.9 Q17 tax morals—(TM)Fig. 5.10 Monetary penalty as opposed to education—(TP1)Fig. 5.11 Community service as opposed to a prison sentence—(TP2)

Fig. 7.1 Logistic Formula 2Fig. 7.2 Scree Plot—Q2/tax awareness (TA1 and TA2)Fig. 7.3 Q2/tax awareness –TA1 and TA2

xviii List of Figures

Fig. 7.4 Q11/Probability of Detection (PD). Where: Y1 = PD Represents the statement that tough penalties would marginally deter tax evasion while the probability of detection remains low

Fig. 9.1 Statistically significant relationships between the main compliance variables for the evader and non-evader samples ( Bold Arrow significant relationship; Dashed Arrow not significant (or qualified) relationship)

Fig. 9.2 Statistically significant relationships between the demographic variables for the evader and non-evader samples ( Bold Arrow Significant relationship; Dashed Arrow not significant (or qualified) relationship)

Fig. 9.3 Statistically significant differences between the compliance and demographic variables for the evader and non-evader samples ( Bold Arrow significant differences; Dashed Line no significant differences)

List of Tables

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Table 4.1 Summary of primary research questions (PRQ)Table 4.2 Summary of secondary research questions (SRQ)Table 4.3 Summary of descriptive research questions (DRQ)

Table 5.1 Q7 Personal penalty/offence-evader sampleTable 5.2 Q4 penalties scenario-evader sampleTable 5.3 Non-compliance categories—Q4(a) monetary penalty-evader sampleTable 5.4 Q11 probability of detection-evader sampleTable 5.5 Q2 awareness of tax issues-evader sampleTable 5.6 Q12 tax law enforcement-evader sampleTable 5.7 Q15 tax fairness-evader sampleTable 5.8 Q17 tax morals-evader sampleTable 5.9 Test statistics PRQ 1 penalties/sanctions-evader sampleTable 5.10 Test statistics PRQ 2 fairness-evader sampleTable 5.11 Test statistics PRQ 3 morals-evader sampleTable 5.12 Test statistics PRQ 4 tax law enforcement-evader sampleTable 5.13 Test statistics PRQ 5 probability of detection-evader sampleTable 5.14 Test statistics PRQ 6 tax awareness-evader sampleTable 5.15 Variables in the equation chart—evader sampleTable 5.16 Total variance explained—Q2/tax awarenessTable 5.17 Rotated component matrix—Q2/tax awarenessTable 5.18 Correlation matrix—Q12/tax law enforcement and Q11/probability of

detectionTable 5.19 KMO and Bartlett’s test-Q12 tax law enforcementTable 5.20 Total variance explained—Q12/tax law enforcement and Q11

probability of detectionTable 5.21 Rotated component matrix Q12 tax law enforcement and Q11

probability of detectionTable 5.22 Case processing summary—Q7 dependent variable, compliant/

non-compliantTable 5.23 Model fitting information—studyTable 5.24 Pseudo R-square—Q7/(compliant/non-compliant)Table 5.25 Parameter estimates—all predictor variablesTable 5.26 Likelihood ratio tests—five selected variables

Table 6.1 Combined findings matrix—evader sample

Table 7.1 Q7 Personal penalty/offence- general population sampleTable 7.2 Q4 Penalties scenario- general population sampleTable 7.3 Q15 tax fairness- general population sampleTable 7.4 Q17 tax morals- general population sampleTable 7.5 Q12 tax law enforcement- general population sampleTable 7.6 Q11 probability of detection- general population sampleTable 7.7 Q2 tax awareness- general population sampleTable 7.8 Test statistics- PRQ1 penalties and sanctions- general population

sampleTable 7.9 Test statistics PRQ2 fairness- general population sampleTable 7.10 Test statistics PRQ3 morals- general population sampleTable 7.11 Test statistics PRQ4 tax law enforcement- general population sampleTable 7.12 Test statistics PRQ5 probability of detection- general population

sampleTable 7.13 Test statistics PRQ6 tax awareness- general population sampleTable 7.14 Variables in the equation chart—general population sampleTable 7.15 Total variance explained—Q2 tax awareness- general population

sampleTable 7.16 Rotated component matrix- Q2/tax awareness- general population

sampleTable 7.17 Descriptive statistics- general population sampleTable 7.18 Case processing summary—all cases -general population sampleTable 7.19 Dependent variable encoding –generalpopulation sampleTable 7.20 Classification table—pre-predictor variables, Q7 dependent variable

compliant/non-compliant -general population sampleTable 7.21 Variables in the equation—constant variable- general population

sampleTable 7.22 Variables not in the equation TA1 & TA2 (general tax awareness and

specific tax awareness) -general population sampleTable 7.23 Omnibus tests of model coefficients—pre-predictor variables- general

population sampleTable 7.24 Hosmer and Lemeshow test—general population sampleTable 7.25 Model summary-general population sampleTable 7.26 Classification table -post-predictor variables, general population sampleTable 7.27 Variables in the equation – TA1 & TA2 (general tax awareness and

specific tax awareness) -general population sampleTable 7.28 Casewise list- general population sampleTable 7.29 Variables not in the equation—TA3 and TA4 (general and specific tax

awareness) -general population sampleTable 7.30 Omnibus tests of model coefficients-post predictor variables) -general

population sampleTable 7.31 Variables in the equation—TA3 and TA4 (general and specific tax

awareness) -general population sample

List of Tablesxx

Table 7.32 Rotated component matrix—TP1 (monetary fines & community service), and TP2 (imprisonment & education) -general population sample

Table 7.33 Omnibus tests of model coefficients TP1 (monetary fines & community service) -general population sample

Table 7.34 Omnibus tests of model coefficients TP2 (imprisonment & education) -general population sample

Table 7.35 Model summary—TP1 (monetary fines & community service) -general population sample

Table 7.36 Model summary—TP2 (imprisonment & education) -general population sample

Table 7.37 Hosmer and Lemeshow test—TP1 (monetary fines & community service) -general population sample

Table 7.38 Hosmer and Lemeshow test—TP2 (imprisonment & education) -general population sample

Table 7.39 Variables in the Equation test—TP1 (monetary fines & community service) -general population sample

Table 7.40 Variables in the equation test—TP2 (imprisonment & education) -general population sample

Table 7.41 Component matrix- PD (probability of detection) -general population sample

Table 7.42 Omnibus tests of model coefficients—PD (probability of detection) -general population sample

Table 7.43 Model summary—PD (probability of detection) -general population sample

Table 7.44 Hosmer and Lemeshow test—PD (probability of detection) -general population sample

Table 7.45 Variables in the equation—PD (probability of detection) -general population sample

Table 7.46 Omnibus tests of model coefficients E1 and E2 (negative & positive tax law enforcement) -general population sample

Table 7.47 Omnibus tests of model coefficientsTF1 and TF2 (general & specific tax fairness) -general population sample

Table 7.48 Omnibus tests of model coefficients TM (tax morals) -general population sample

Table 8.1 Combined findings matrix—general population sample

Table 9.1 Test statisticsPRQ7—tax law enforcement and tax fairnessTable 9.2 Test statisticsPRQ8—tax law enforcement and tax moralsTable 9.3 Test statisticsPRQ9—tax law enforcement and tax awarenessTable 9.4 Test statisticsPRQ10—tax fairness and tax moralsTable 9.5 Test satisticsPRQ11—tax fairness and tax awarenessTable 9.6 Test statisticsPRQ12—tax morals and tax awarenessTable 9.7 Test statisticsPRQ13—tax fairness and tax penalties/sanctionsTable 9.8 Test statisticsPRQ14—tax fairness and probability of detection

List of Tables xxi

Table 9.9 Test statisticsPRQ15—Tax awareness and tax penalties/sanctionsTable 9.10 Test statisticsPRQ16—tax law enforcement and tax penalties/sanctionsTable 9.11 Test statisticsPRQ17—tax penalties/sanctions and probability of

detectionTable 9.12 Test statisticsPRQ18—tax morals and tax penalties/sanctionsTable 9.13 Test statisticsPRQ19—tax law enforcement and the probability of

detectionTable 9.14 Test statisticsPRQ20—tax awareness and the probability of detectionTable 9.15 Test statisticsPRQ21—tax morals and probability of detectionTable 9.16 Test statisticsSRQ1—gender survey Q23Table 9.17 Test statisticsSRQ2—age survey Q24Table 9.18 Test statisticsSRQ3—occupation survey Q27Table 9.19 Test statisticsSRQ4 ethnicity—survey Q25Table 9.20 Test statisticsSRQ5 income level—survey Q28Table 9.21 Test statisticsSRQ6 location—survey Q29Table 9.22 Test statisticsSRQ7 education level—survey Q26Table 9.23 Test statisticsSRQ8 return lodgement—survey Q30Table 9.24 Ranks- compliance behaviour via imposition of penalty—survey Q7Table 9.25 Test statistics compliance behaviour via imposition of penalty—survey Q7Table 9.26 Test statistics PRQ1 tax penalties/sanctions—survey Q4Table 9.27 Test statistics PRQ2 tax fairness—survey Q15Table 9.28 Test statistics PRQ3 tax morals—survey Q17Table 9.29 Test statistics RQ4 tax law enforcement—survey Q12Table 9.30 Test statistics PRQ5 probability of detection—survey Q11Table 9.31 Test statistics PRQ6 tax awareness—survey Q2Table 9.32 Test statistics SRQ1 gender-survey Q23Table 9.33 Test statistics SRQ2 age—survey Q24Table 9.34 Test statistics SRQ3 occupation—survey Q27Table 9.35 Test statistics SRQ4 ethnicity—survey Q25Table 9.36 Test statistics SRQ5 income level—survey Q28Table 9.37 Test statistics SRQ 6 location—survey Q29Table 9.38 Test statistics RQ7 educational level—survey Q26Table 9.39 Test statistics SR8 tax return lodgement—survey Q30Table B1.1 Maximum statutory fines and taxpayer non-compliance 1985–1996Table B2.1 Average fines imposed by the courts and taxpayer non-compliance

1985–1996Table B2.2 Maximum statutory term of imprisonment and taxpayer non-

compliance 1976–1996 (The provisions of the Crimes Act (1914) (Cth), Crimes Taxation Offences Act(1980) (Cth), Income Tax Assessment Act 1936 (Cth), and the Tax Administration Act (1953) (Cth). The Commonwealth Annotations 1999 & 2000 supplement, the reprints of those Acts 1980, 1982-1984-2000 and the relevant volumes of the Consolidated Acts (1973) (Cth).)

Table B2.3 Convictions and sentencing for tax offences and taxpayer non-compliance 1985–1996

List of Tablesxxii

List of Appendices

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Appendix A: The ATO Compliance Model ...................................................... 307Appendix B1: Changes in Taxation Penalty Provisions .................................. 307Appendix B2: Penalties and Sentences Imposed by the Courts ...................... 312Appendix C: Descriptive Statistics—Evader Sample ...................................... 319Appendix D: Descriptive Statistics-General Population Sample ..................... 323

About the Author

Ken N. H. Devos Ph.D. is a Senior Lecturer in the Department of Business Law and Taxation at Monash University, Australia. Dr. Devos held an undergraduate degree in Accounting from Victoria University and a Masters of Taxation from the Royal Melbourne Institute of Technology, before receiving his Ph.D in Taxation from Monash University in 2012. Dr. Devos worked as a technical officer before becoming a graduate trainer at the Australian Taxation Office, from 1987 to 1997. Since 1998 he has lectured and researched at Monash University and acts as a tax consultant to CPA Australia, the Australian Tax Office and various accounting firms. Dr. Devos is also the co-author of the Australian Taxation Study Manual and Master Tax Examples and has authored many journal articles and conference papers, in the areas of taxpayer compliance, tax simplification, tax administration and tax policy.

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