A Contribution of Expected Utility Theory in Taxpayers' Behavior Modeling

Farid Ameur and Mohamed Tkiouat
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Farid Ameur: Studies and Research Laboratory in Applied Mathematics (LERMA), Mohammadia School of Engineering, Mohamed V University, Rabat BP. 765, Morocco,
Mohamed Tkiouat: Studies and Research Laboratory in Applied Mathematics (LERMA), Mohammadia School of Engineering, Mohamed V University, Rabat BP. 765, Morocco.

International Journal of Economics and Financial Issues, 2016, vol. 6, issue 3, 1217-1224

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 (search for similar items in EconPapers)
JEL-codes: C5 H3 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ1:2016-03-52

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