Proceedings of the 10th International Academic Conference on Humanities and Social Sciences
Year: 2024
DOI:
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Equitable Tax System and Tax Compliance: Mexican Case
Filadelfo León-Cázares
ABSTRACT:
The objective of this paper was to describe and explain the tax compliance (TC) of citizens within the institutional framework of Article 28 of the Mexican Constitution, which establishes the prohibition of tax concessions and exemptions. For this purpose, equity theory was used to analyze taxpayers’ perceptions of an equitable tax system and its effect on TC. Data provided by 867 citizens of the metropolitan area of Guadalajara in the year 2023 were used. Based on the statistical techniques of analysis of variance, exploratory factor analysis and an ordinal-logit regression model, the results indicated that 75.9% are indifferent or agree with paying taxes. Although the majority (60%) of citizens perceived misuse and lack of trust in the management of the resources collected, they also perceived little transparency in their management. These results were consistent across the three levels of government (federal, state and local). In addition, perceptions of horizontal/vertical equity, retributive equity, and procedural equity were positively associated with TC. Men are more willing to comply with tax obligations than women. This last finding differs from what is argued in the literature. However, the association of age, education level and income of the respondents with TC was not statistically significant. The relevance of this work lies in understanding complex human behavior with TC in different cultural contexts.
keywords: Perceptions, Taxes, Tax Equity, Taxpayers, Collection