New research by the University of Waterloo explores how penalty severity and social norms impact tax compliance, especially in the context of COVID-19 relief fraud.
A recent study from the University of Waterloo has provided critical insights into how penalty severity and social norms influence tax compliance, particularly in the context of COVID-19 relief fraud.
The study was conducted by professor Dr. Tisha King of Waterloo’s School of Accounting and Finance and investigates the behavioral responses of taxpayers when faced with different levels of penalties and social norms, revealing significant findings that can help shape future policies and improve tax compliance.
“This paper extends my previous research by exploring a spectrum of just and unjust punishments. The research establishes that the severity of penalties can encourage compliance and uses a novel approach to measure social norms,” explains King.
