Explaining the Role of Religious Beliefs, legal Deterrence, and Perceived Justice on Correct Tax Declaration

SadrAra, Mehrdad; Omrani, Hamed

[Home ] [Archive]

[ فارسی ]

journal of Value & Behavioral Accounting

Main Menu

Home

Journal Information

Editorial Board

Articles archive

Publication Ethics

For Authors

Peer Review Process

Registration

Site Facilities

Contact us

Search in website

Receive site information

Back to the articles list

Back to browse issues page

Explaining the Role of Religious Beliefs, legal Deterrence, and Perceived Justice on Correct Tax Declaration

Mehrdad SadrAra ^*¹

, Hamed Omrani²

1- Assistant Professor, Department of Accounting, Faculty of Management and Economics, University of Guilan, Iran.(Corresponding Author) , Mehrdadsadrara@guilan.ac.ir
2- Assistant Professor, Department of Accounting, University of Kharazmi, Iran. Omrani86@Gmail.com

Abstract: (38 Views)

This study aimed to investigate the simultaneous effect of religious beliefs, legal deterrence, and perceptual justice on correct tax declaration in the Iranian tax declaration system. Based on the theoretical framework of behavioral economics and sociology of religion, the present study seeks to fill the gap in the country's tax literature, which is mainly focused on technical and legal aspects. The research is descriptive-correlational in nature, and data were collected through a standardized questionnaire from a sample of 775 taxpayers nationwide during the period 1402 to 1404. The findings show that while monitoring and penalty mechanisms have a significant effect on correct tax declaration, value and religious factors, including Islamic beliefs, participation in religious ceremonies, and the perception of guilt from tax violations, have not been able to play a significant role in correct tax declaration. These results indicate the existence of a gap between promoted religious values and the actual performance of the country's tax system. From a theoretical perspective, the present study presents a hybrid model for analyzing tax behavior in the cultural context of Iran, and from a practical perspective, it highlights the need to review tax policies with an emphasis on strengthening social responsibility and reforming fair tax behavior towards taxpayers. The findings of this study, which confirm the determining role of fines versus the limited impact of religious and behavioral values on tax compliance, will be helpful for policymakers and tax administrators in designing a more realistic incentive system, and for researchers in designing localized behavioral models.

Keywords: Perceptual Justice, legal Deterrence, Religious Beliefs, Declared Tax, Tax System.

Type of Study: Research | Subject: Special
Received: 2025/07/13 | Accepted: 2026/03/1

References

1. 29. Allingham, M. G., & A. Sandmo., 1972, Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3): 323-338.

2. 30. Alm, J., & B. Torgler., 2006, Culture differences and tax morale in Europe and the USA. Journal of Economic Psychology, 27(2): 224-246.

3. 31. Alm, J., 2019, What motivates tax compliance? Journal of Economic Surveys, 33(2): 353-388.

4. 32. Balakrishnan, K., J. Blouin., & W. Guay., 2018, Tax Aggressiveness and Corporate Transparency. The Accounting Review, 15: 16-37.

5. 33. Barro, R., & R. McCleary., 2003, Religion and Economic Growth. American Sociological Review, 68: 760–781.

6. 34. Besley, T., A. Jensen., & T. Persson., 2020, Norms, enforcement, and tax evasion. NBER Working Paper No. 25575. https://www.nber.org/papers/w25575

7. 35. Brizi, A., M. Giacomantonio., B. M. Schumpe., & L. Mannetti., 2015, Intention to Pay Taxes or to Avoid Them: The Impact of Social Value Orientation. Journal of Economic Psychology, 50: 22-31.

8. 36. Castillo, J, G. & N. Bermúdez., 2022, Taxable Income Elasticities in Developing Countries: Evidence From Ecuador. Available at SSRN: https://ssrn.com/abstract=4233450

9. 37. Cochran, W. G. (1977). Sampling Techniques (3rd ed.). Page 75.

10. 38. Colson, G., & L. Menapace., 2012, Multiple receptor ambient monitoring and firm compliance with environmental taxes under budget and target driven regulatory missions. Journal of Environmental Economics and Management, 64: 390–401.

11. 39. Cropanzano, R., & M. S. Mitchell., 2005, Social exchange theory: An interdisciplinary review. Journal of Management, 31(6): 874-900.

12. 40. Ghaniy Anggraini, P., M. Sholihin., M. Mangena., S. Wijayana., & F. Rakhman., 2025, The determinants and consequences of tax avoidance: A psychological contract perspective, Research in International Business and Finance, 79, 103077.

13. 41. Hanlon, M., J. Hoopes., & N. Shroff., 2014, The Effect of Tax Authority Monitoring and Enforcement on Financial Reporting Quality. The Journal of the American Taxation Association. 36(2): 137-170.

14. 42. Hauptman, L., B. Žmuk., & N. Dečman., 2024, Tax governance in compliance: The role of motivational postures and behavioral intentions, Problems & perspectives in management, 22 (1): 500-513. doi: 10.21511/ppm.22(1).2024.40.

15. 43. Lestari, A., D. Rosiyana., I. Wahyuni., & W, Windiyani., 2023, Factors-Factors Affecting Tax Avoidance. Devotion Journal of Community Service. 4: 289-304.

16. 44. Luttmer, E. F., & M. Singhal., 2014, Tax morale, Journal of Economic Perspectives, 28(4): 149-168.

17. 45. OECD., 2022, Tax Compliance by Design: Achieving Improved SME Tax Compliance by Adopting a System Perspective. OECD Publishing, Paris.

18. 46. Slemrod, J., 2019, Tax Compliance and Enforcement. Journal of Economic Literature, 57(4): 904-954.

Rights and permissions
	This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Back to the articles list

Back to browse issues page

Persian site map - English site map - Created in 0.15 seconds with 34 queries by YEKTAWEB 4741