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Modelling the assessment of taxpayer perception on the fiscal system by a hybrid approach for the analysis of challenging data structures

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Abstract

Models of tax compliance analysed various factors affecting tax compliant behaviour, from human internal motivations to public perception, risk aversion of penalty and trust in State. For tackling the assessment of taxpayer perception on the fiscal system in a challenging survey based on multiple items, a hybrid statistical model is introduced. In particular, after verifying for each individual the component of feeling and uncertainty in the response process to individual blocks of items intended to measure common latent traits, we synthesized the information in meta-items applying a data-reduction. The meta-items are then modelled according to statistical frameworks for ordered polytomous variables accounting for potential uncertainty in the process of response. Our results—based on a sample of 366 respondent-students attending various Finance courses in Europe—display a certain gender bias in uncertainty levels showing that women feel more uncertain when expressing their opinion on the taxation system. Furthermore they are in accordance with previous studies showing that the trust in State supports voluntary tax compliance and it is driven by clearer laws, transparent communication, perceived good quality of public services and efficient policies for ensuring social welfare of citizens.

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Acknowledgements

This work was supported by a grant of Ministry of Research, Innovation and Digitization, Program 1/Subprogramme 1.2—RDI Funding Excellence Projects, contract number 21PFE/2021. Furthermore, this work acknowledges research support by COST Action CA19130 ‘Fintech and Artificial Intelligence in Finance—Towards a transparent financial industry’ (FinAI), supported by COST (European Cooperation in Science and Technology).

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Author notes

  1. Ioana-Florina Coita, Maria Iannario, Alfonso Iodice D’Enza and Codruţa Mare have contributed equally to this work.

Authors and Affiliations

  1. Faculty of Economics, University of Oradea, Str. Armatei Romane, 5, Oradea, Romania

    Ioana-Florina Coita

  2. Department of Political Sciences, University of Naples Federico II, Via L. Rodinó, 22, Naples, Italy

    Maria Iannario & Alfonso Iodice D’Enza

  3. Department of Statistics-Forecasts-Mathematics, Faculty of Economics and Business Administration & Interdisciplinary Centre for Data Science, Babes-Bolyai University, Str. Teodor Mihali, 58-60, and Str. Avram Iancu, 68, Cluj-Napoca, Romania

    Codruţa Mare

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  1. Ioana-Florina Coita
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  2. Maria Iannario
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  3. Alfonso Iodice D’Enza
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Correspondence to Codruţa Mare.

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Coita, IF., Iannario, M., Iodice D’Enza, A. et al. Modelling the assessment of taxpayer perception on the fiscal system by a hybrid approach for the analysis of challenging data structures. Digit Finance (2023). https://doi.org/10.1007/s42521-023-00092-y

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