Tax Compliance Determinants: Insights from Gender, Entity Size and Legal Status in a Greek Experiment

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Abstract
The problem of tax non-compliance remains a significant challenge for governments worldwide, with persistent economic and financial implications. However, the synergistic potential of gender differences, legal status, and entity size disparities in tax compliance behavior highlight areas not fully covered in the existing literature. This study presents data from a field tax compliance experiment involving business executives responsible for their companies’ tax decisions. Our findings suggest that changes in tax levels or information about controllability may not significantly impact compliance behavior. However, higher fines and increased audit probabilities appear to improve compliance among participants. Notably, there are statistically significant gender differences in compliance, with female entrepreneurs generally showing higher levels of compliance than male 10 entrepreneurs, particularly under increased audit conditions. Additionally, legal status and entity size seem to significantly affect tax compliance. Smaller companies with fewer assets tend to demonstrate lower compliance rates, likely due to limited resources and expertise. Different legal statuses, which come with varying tax duties and compliance requirements, also influence compliance behavior. The findings suggest that policy decision-makers could enhance overall tax compliance by considering strategies such as raising audit frequency and penalties, implementing supportive policies for small businesses, and rewarding accurate reporting.

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