Is There a Shift in the Intended Tax Compliance During the COVID-19 Outbreak? An Exploratory Study

Authors

  • Radu Ciobanu Department of Finances, The Bucharest University of Economic Studies, Romania https://orcid.org/0000-0002-2842-5604
  • Mirela Paunescu Department of Finances and Department of Accounting and Audit, The Bucharest University of Economic Studies, Romania https://orcid.org/0000-0003-4017-4606
  • Adriana Florina Popa Department of Finances and Department of Accounting and Audit, The Bucharest University of Economic Studies, Romania

DOI:

https://doi.org/10.5755/j01.ee.36.3.36525

Keywords:

Tax Compliance, Slippery Slope, COVID-19 Crisis, Perception Change, Tax Collection

Abstract

This exploratory study investigates whether there was a shift in intended tax compliance during the COVID-19 pandemic in Romania, identifying factors influencing taxpayers' perceived moral obligation to pay taxes amid crises. Using data from an online survey with 404 respondents conducted at the end of 2021, a multinomial logistic regression (MLR) analysis, informed by the slippery slope framework, was employed to analyze the role of voluntary and enforced compliance, trust in government, power of tax authorities, and other socio-demographic factors in influencing taxpayer behavior. The results indicate that older taxpayers felt a heightened moral obligation to comply with tax regulations during the COVID-19 crisis compared to younger individuals. Gender did not significantly affect intended tax compliance in crisis periods. Voluntary compliance showed mixed outcomes; taxpayers who recognized taxes as beneficial to society demonstrated increased compliance during the pandemic, whereas those who usually paid willingly displayed decreased compliance. Crucially, higher perceptions of tax fairness and greater trust in governmental institutions substantially increased taxpayers' moral obligation to comply during the pandemic. Unexpectedly, reduced corruption perceptions did not correspond with improved tax compliance. This research contributes to existing literature by highlighting the complex interplay of demographic variables, voluntary compliance motivations, and institutional trust during economic crises. The findings emphasize the need for policymakers to foster transparent communication, equitable tax policies, and enhance institutional trust to maintain and potentially increase tax compliance during challenging economic conditions.

Author Biographies

Radu Ciobanu, Department of Finances, The Bucharest University of Economic Studies, Romania

Radu Ciobanu, Dr., is a professor at the Faculty of Finance and Banking (FABBV) at the Bucharest University of Economic Studies (ASE). He specializes in taxation, financial analysis, enterprise valuation, and capital markets. He is the author or co-author of over 10 specialized books in the field of corporate finance, taxation, and mergers and acquisitions. Additionally, he maintains a continuous research activity, reflected in more than 30 articles published in national and international journals.

Mirela Paunescu, Department of Finances and Department of Accounting and Audit, The Bucharest University of Economic Studies, Romania

Mirela Păunescu is an associate professor at Faculty of Accounting and Management Information Systems, Bucharest University of Economic Studies. With over 20 years of academic and practical experience in tax accounting, her main research interests are in the field of financial reporting, auditing and taxation. Over the years, she paid her contribution by being involved in activities dedicated to education of students and professional accountants and part of many working groups dedicated to the accounting profession organized at national and international level. Mirela authored more than 100 articles and books.

Adriana Florina Popa, Department of Finances and Department of Accounting and Audit, The Bucharest University of Economic Studies, Romania

Adriana Florina Popa, PhD, is a professor in the Department of Accounting and Audit at the Bucharest University of Economic Studies with 22 years of academic and practical experience and research interests in the field of accounting and taxation. She is involved in activities dedicated to education at national and international levels as a member of the International Accounting Education Panel (IPAE) and in the ESG Innovation Team at IFAC. The academic background is accompanied by the quality of being a trainer for accounting professionals and trainees as a coordinator of CECCAR National Institute of Initial and Continuous Professional Development.

Additional Files

Published

2025-06-30

Issue

Vol. 36 No. 3 (2025)

Section

Articles