A Contribution of Expected Utility Theory in Taxpayers’ Behavior Modeling

Year 2016, Volume: 6 Issue: 3, 1217 - 1224, 01.05.2016

Farid Ameur Mohamed Tkiouat

https://izlik.org/JA33KM86AY

Abstract

We try to analyze the attitudes of taxpayers regarding tax system. We propose an approach which combines between theory and practice. In the first
step, we present a normative approach; based on a theoretical study. In order to produce an empirical knowledge of an aspect of reality we present a
descriptive approach; based on a survey of different categories of taxpayers. We have released some conditions of the model of expected utility and
we have introduced a new parameter reflecting the efficiency of tax control. Previous studies are based on a maximal efficiency tax control (100%)
which is a particular case of our model. We found that for Moroccan case, the fraud is related to the size of companies; it’s more important in the big
companies than small and medium enterprises. The findings will help tax authorities to achieve their goals in fighting tax fraud.

Keywords

Expected Utility , Prospect Theory , Survey , Underground Economy , Tax Fraud , Tax Authority , Tax Audit , Tax Compliance , Taxpayers , Behavior