Quotation Blaufus, Kay, Chirvi, Malte, Huber, Hans-Peter, Maiterth, Ralf, Sureth-Sloane, Caren. 2020. Tax Misperception and Its Effects on Decision Making - Literature Review and Behavioral Taxpayer Response Model. European Accounting Review. 29 1-34.


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Abstract

Previous accounting research shows that taxes affect decision making by individuals and firms. Most studies assume that agents have an accurate perception regarding their tax burden. However, there is a growing body of literature analyzing whether taxes are indeed perceived correctly. We review 128 studies on the measurement of tax misperception and its behavioral implications. The review reveals that many taxpayers have substantial tax misperceptions that lead to biased decision making. We develop a Behavioral Taxpayer Response Model on the impact of provided tax information on tax perception. Besides individual traits, characteristics of the tax information and the decision environment determine the extent of tax misperception. We discuss opportunities for future research and methodological limitations. While there is much evidence on tax misperception at the individual level, we hardly find any research at the firm level. Little is known about the real effects of managers’ tax misperception and on how tax information is strategically managed to impact stakeholders. This research gap is surprising as a large part of the accounting literature analyzes decision making and disclosure of firms. We recommend a mixed-method approach combining experiments, surveys, and archival data analyses to improve the knowledge on tax misperception and its consequences.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal European Accounting Review
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-A, WH-A
Language English
Title Tax Misperception and Its Effects on Decision Making - Literature Review and Behavioral Taxpayer Response Model
Volume 29
Year 2020
Page from 1
Page to 34
URL https://www.tandfonline.com/doi/full/10.1080/09638180.2020.1852095
DOI https://doi.org/10.1080/09638180.2020.1852095
Open Access Y
Open Access Link https://www.tandfonline.com/doi/full/10.1080/09638180.2020.1852095

Associations

People
Sureth-Sloane, Caren (Details)
External
Blaufus, Kay (Leibniz Universität Hannover, Germany)
Chirvi, Malte (Humboldt University of Berlin - School of Business and Economics, Germany)
Huber, Hans-Peter (Humboldt University of Berlin - School of Business and Economics, Germany)
Maiterth, Ralf (Humboldt University of Berlin - School of Business and Economics, Germany)
Organization
Research Institute for International Taxation FI (Details)
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