USING THE THEORY OF REASONED ACTION AND AUDIT REMINDER MESSAGES TO INCREASE TAX COMPLIANCE: AN EXPERIMENTAL STUDY OVER REPEATED PERIODS

Abstract

This paper examines, through the use of a laboratory experiment, the effects on tax compliance of two types of messages – one consisting of a simple reminder of audit risk and one designed based on the theory of reasoned action (TRA). It extends prior research by incorporating the TRA into persuasive tax compliance messages and by examining the effects of the messages over repeated periods. The results suggest some evidence that the messages have a positive impact across time. In addition, there is evidence that the TRA message increases the amount of income reported when an individual fails to comply fully.