Investigating the impact of prospect theory on tax noncompliance with the mediating role of feelings and moral disengagement

Shahmoradi, Nasim; Bazrafshan Poor, Roghayeh

doi:10.22051/jaasci.2023.42319.1743

Investigating the impact of prospect theory on tax noncompliance with the mediating role of feelings and moral disengagement

Document Type : Research Paper

Authors

¹ Associate Prof., Department of Accounting, Yazd Branch, Islamic Azad University, Yazd, Iran, Corresponding Author,

² Ph.D. student, Department of Accounting, Azad Islamic University, Yazd, Iran

10.22051/jaasci.2023.42319.1743

Abstract

Purpose: According to prospect theory, being in a profit or loss position leads to different feelings, and people try to make decisions using the process of moral disengagement to achieve their desired results while having the least internal damage. The purpose of this research is to investigate the impact of perspective theory on people's tax noncompliance by considering the mediating role of their feelings and moral disengagement.
Methodology: The statistical sample of the research is 48 accounting students, who are at least 20 years old, have at least 3 years of professional work experience in accounting, and have filled out at least 3 tax returns. The necessary data were collected using the test method and scenario of Austin et al. (2021) and analyzed using the t-test of two independent samples and with the help of structural equation modeling and PLS software.
Results: The obtained results indicate no relationship between feelings and being in the profit and loss area with tax noncompliance, while the mediating role of moral disengagement has been confirmed.
Conclusion: The emotions described through prospect theory do not affect tax compliance decisions by themselves, but moral disengagement is a precursor to risky tax decisions.
Contribution: In addition to adding theoretical foundations in the field of accounting, the obtained results are also useful for tax legislators.

Keywords

Main Subjects

other

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