To Pay or Not to Pay: What Really Drives Canadian Tax Compliance
Principal Investigator: Merridee Bujaki, Finance
Project Title: How Financially Focused Self-Concept Influences Tax Morale, Tax Attitudes and Endorsement of Aggressive Tax Behaviours among Canadian Taxpayers
Funder: CPA – CAAA
This research examines how a financially focused self-concept (FFSC)—where individuals define their self-worth through financial success—shapes tax morale, tax attitudes, and the endorsement of aggressive tax behaviours among Canadian taxpayers. Recognizing that Canada’s tax system relies heavily on voluntary compliance, the study addresses gaps in existing literature by distinguishing tax morale (intrinsic motivation to pay taxes) from tax attitudes (perceptions of fairness and trust in government) and actual tax behaviours. The project proposes two studies: a longitudinal survey of Canadian taxpayers at key points in the tax year, and an experimental study that manipulates financial focus to assess causal effects on tax-related attitudes and behaviours. By integrating psychological and economic perspectives, the research aims to determine whether individuals with a stronger financial focus are more likely to exhibit lower tax morale and greater support for aggressive tax strategies. The findings will inform tax policy, communication, and education efforts, helping to improve compliance, strengthen public trust, and promote a more transparent and effective tax system in Canada.