6 September 2005
Men and people on higher incomes are more likely to risk tax evasion, a Monash University study has found.
In a pilot study undertaken by Department of Business Law and Taxation lecturer Mr Ken Devos, 470 tertiary students were surveyed to investigate the relationship between demographics and taxpayers' attitudes towards evasion and the penalties for it.
In one question, respondents were asked for their opinions of a hypothetical scenario in which a business owner negotiated discounts for customers in return for being paid cash.
Mr Devos said an overwhelming 70 per cent of males and 82 per cent of higher income earners were willing to ignore the penalty and risk tax evasion.
"It was also concerning to learn that 64 per cent of these males said they would feel victorious if they successfully evaded their tax debt. And Australian-born respondents were more likely to resent the Australian Tax Office controlling them."
He said participants were also asked to rate the degree of opportunity different occupational groups had to legally reduce their tax.
"Thirty-eight per cent of respondents believed chief executives of large corporations had too many opportunities to reduce their tax debt, while 46 per cent felt unskilled factory workers didn't have enough.
"By examining the behavioural attitudes of taxpayers more closely, it is envisaged that governments may be able to bridge the tax gap - the difference between what is properly payable and what is actually collected - and eventually improve community values and understanding of tax compliance."
Mr Devos is negotiating with the ATO to extend this research to a larger sample of taxpayers. It is proposed the survey will be sent out by the ATO but returned directly to Mr Devos, to encourage compliers and evaders to participate.
For further information contact Mr Ken Devos on +61 3 9905 2266 or Ms Natasha Whalley, Media Communications on +61 3 9905 9201 or 0437 458 457.
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