Perceptions About Tax Evasion and Tax Avoidance in Thailand: An Institutional Theory Perspective
type: CreativeWork
description: To fund State-based investment in public services, governments have to confront issues of tax evasion and tax avoidance which erode a country’s tax base and therefore Government revenue. Moreover, they have to deal with wealthy individuals and companies that develop aggressive tax planning schemes in order to reduce their tax liabilities. This research seeks to add to the sparse literature on tax evasion and tax avoidance: (i) by looking at this problem within a Thai context; (ii) by investigating current perceptions about the extent of tax avoidance/evasion from relevant stakeholders; (iii) by identifying institutional factors that influence a taxpayer’s propensity to engage in tax evasion and tax avoidance; and (iv) by studying the motives behind the introduction of a new tax evasion legislation (the Revenue Code Amendment Act (No.45), B.E.2560 (A.D.2017)) in Thailand. This research employs a combination of institutional theory and concepts of legitimacy as the theoretical lenses to guide the study. A qualitative approach including both interviews and internet-based news articles is employed when conducting this study. Reflecting on 35 interviews with a range of stakeholders and discussions about the legislation in on-line news articles as it progressed through Parliament, the findings indicate that a number of issues are thought to contribute to the level of tax evasion and tax avoidance in Thailand: (i) the taxpayer’s sense of morality and feeling of responsibility to society, (ii) social norms, and (iii) views on public sector efficiency. Additionally, the results suggest that external and internal institutional pressures acted as catalysts for the introduction of the new tax evasion legislation in Thailand. These findings should provide useful empirical evidence and analysis for policymakers in Thailand and other similar developing countries; specifically, it should aid with the design and development of tax policies which promote tax compliance. Moreover, thi…
abstract: To fund State-based investment in public services, governments have to confront issues of tax evasion and tax avoidance which erode a country’s tax base and therefore Government revenue. Moreover, they have to deal with wealthy individuals and companies that develop aggressive tax planning schemes in order to reduce their tax liabilities. This research seeks to add to the sparse literature on tax evasion and tax avoidance: (i) by looking at this problem within a Thai context; (ii) by investigating current perceptions about the extent of tax avoidance/evasion from relevant stakeholders; (iii) by identifying institutional factors that influence a taxpayer’s propensity to engage in tax evasion and tax avoidance; and (iv) by studying the motives behind the introduction of a new tax evasion legislation (the Revenue Code Amendment Act (No.45), B.E.2560 (A.D.2017)) in Thailand. This research employs a combination of institutional theory and concepts of legitimacy as the theoretical lenses to guide the study. A qualitative approach including both interviews and internet-based news articles is employed when conducting this study. Reflecting on 35 interviews with a range of stakeholders and discussions about the legislation in on-line news articles as it progressed through Parliament, the findings indicate that a number of issues are thought to contribute to the level of tax evasion and tax avoidance in Thailand: (i) the taxpayer’s sense of morality and feeling of responsibility to society, (ii) social norms, and (iii) views on public sector efficiency. Additionally, the results suggest that external and internal institutional pressures acted as catalysts for the introduction of the new tax evasion legislation in Thailand. These findings should provide useful empirical evidence and analysis for policymakers in Thailand and other similar developing countries; specifically, it should aid with the design and development of tax policies which promote tax compliance. Moreover, thi…
author: Natpraypant, Vorakanlaya
language: eng
keywords: Tax evasion, Tax avoidance, Tax evasion legislation, Institutional theory, Legitimacy, Thailand
date published: 2020
date modified: 2026-07-24T02:08:59Z
provider: University of Dundee
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: University of Dundee