Fiscal Citizenship in Migrant Societies: An International Cross Country Comparison
Lead Research Organisation:
UNIVERSITY OF EXETER
Department Name: Finance and Accounting
Abstract
Taxation is necessary to the proper functioning of the modern welfare state and payment of taxes can be thought of as a unifying act that brings us together to further our collective goals. Taxes touch our lives in many ways and our willingness to contribute through paying taxes, understood in our project as "fiscal citizenship", is complicated. All countries have a tax culture i.e. social norms around paying taxes and 'tax morale' or how citizens feel about paying taxes. Our comparative project will address this important issue in a study that includes the impact of demographic change in the form of migration, on established taxpaying norms.
In the face of economic instability coupled with increasing migration, securing funds to support the welfare state is a pressing issue. However, our study is not only important for developing policies that support and encourage fiscal citizenship but will also shed light on the broader question of how political and institutional context shapes citizens' preferences and societal integration. Attitudes towards paying taxes also provide a window into wider aspects of modern society such as social norms, respect for authority, trust and cultural traditions.
It is surprising that we currently know little about the relationships between citizenship, migration and fiscal citizenship, which means that tax systems and collection policies may not be designed in the most efficient way. Over the last 3 - 4 decades, Canada, Germany and the UK have experienced a large influx of migrants from a wide range of other countries, each with their own tax culture. These changes in the make-up of our societies inevitably impact on fiscal citizenship. Newcomers bring with them experiences of their home countries and may not readily adapt to the new tax culture. This has implications not only for tax authorities trying to collect tax as best they can, but also for existing citizens who may experience a change in their own willingness to pay taxes.
The research team consists of a unique combination of researchers trained in accounting, anthropology, law and political science from Canada, Germany and the UK. Combining strong cultural, political and fiscal knowledge provides a unique vantage point for exploring the challenges of fostering fiscal citizenship among both citizens and migrants, touching as it does on both the social and technical aspects of contributing to society through payment of taxes. The research draws on several methodological traditions specifically experiments, legal and institutional analysis, surveys, and qualitative interviews in four interrelated studies organised across three work packages: analysis, investigation and integration.
We will seek the views of a wide range of participants through surveys and interviews in the our three countries to find out more about national fiscal citizenship to develop policy prescriptions to pave the way for improved fiscal citizenship. Raising public awareness of fiscal citizenship will help to make it more robust, for the benefit of wider society.
In the face of economic instability coupled with increasing migration, securing funds to support the welfare state is a pressing issue. However, our study is not only important for developing policies that support and encourage fiscal citizenship but will also shed light on the broader question of how political and institutional context shapes citizens' preferences and societal integration. Attitudes towards paying taxes also provide a window into wider aspects of modern society such as social norms, respect for authority, trust and cultural traditions.
It is surprising that we currently know little about the relationships between citizenship, migration and fiscal citizenship, which means that tax systems and collection policies may not be designed in the most efficient way. Over the last 3 - 4 decades, Canada, Germany and the UK have experienced a large influx of migrants from a wide range of other countries, each with their own tax culture. These changes in the make-up of our societies inevitably impact on fiscal citizenship. Newcomers bring with them experiences of their home countries and may not readily adapt to the new tax culture. This has implications not only for tax authorities trying to collect tax as best they can, but also for existing citizens who may experience a change in their own willingness to pay taxes.
The research team consists of a unique combination of researchers trained in accounting, anthropology, law and political science from Canada, Germany and the UK. Combining strong cultural, political and fiscal knowledge provides a unique vantage point for exploring the challenges of fostering fiscal citizenship among both citizens and migrants, touching as it does on both the social and technical aspects of contributing to society through payment of taxes. The research draws on several methodological traditions specifically experiments, legal and institutional analysis, surveys, and qualitative interviews in four interrelated studies organised across three work packages: analysis, investigation and integration.
We will seek the views of a wide range of participants through surveys and interviews in the our three countries to find out more about national fiscal citizenship to develop policy prescriptions to pave the way for improved fiscal citizenship. Raising public awareness of fiscal citizenship will help to make it more robust, for the benefit of wider society.
Organisations
Publications
Björklund Larsen L
(2023)
Tax Culture(s)
Björklund Larsen L
(2022)
Fiscal Citizenship and Fiscal Belonging in the UK
Bruns, C
(2023)
Multidimensional Tax Compliance Attitude
Larsen, L Bjorklund
(2023)
Measuring an Absence of Fiscal Citizenship: Reflections on the Tax Gap
Lotta Bjorklund Larson
(2024)
Measuring an absence of fiscal citizenship: Reflections on the tax gap
in Critical Perspectives on Accounting
Mattaei E
(2022)
Migration, Trust and Tax Morale
Matthaei E
(2023)
Relative trust and tax morale
in Economic and Political Studies
Ormeño-Pérez R
(2023)
The making of problematic tax regulation: A Bourdieusian perspective
in Critical Perspectives on Accounting
Schmidt, C
(2023)
Conceptulising Fiscal Citizenship
| Description | Through several sub-projects, this cross-country project is shedding new light on willingness to pay tax by developing novel conceptions of fiscal citizenship with a particular emphasis on migration. Multidisciplinary teams have explored different aspects of fiscal citizenship using a mixture of methodological approaches. While analysis of survey, experimental and qualitative empirical data is ongoing, early findings from several of the sub-projects include: • Using extensive survey data, one study finds that taxpayers who are classified as 'moralists' consistently exhibit higher tax compliance than those who are classified as 'rationalists'. This has implications, for example, for the effectiveness of tax authority messaging (Bruns, Fochman Mohr & Torgler ) • Drawing on the Integrated Values Survey one study finds that migration and citizenship status significantly interact in forming trust and tax morale (Matthaei, Schmidt and Torgler) ; • Recognition of heterogeneity in migrant groups is important analytically. One study analyses individual preferences in relation to how tax revenue is allocated between migrants and non-migrants in German society using an experimental vignette study. It is found that while participants with identical and different migration backgrounds exhibited equal migrant allocation, analysis of the underlying determinants revealed significant differences between homogeneous and heterogeneous migrant groups (Fochman, Kiesewetter & Machwart). • Immigrants appear to be willing to be tax compliant if they have a voice in the tax policy process in the form of a vote but not in a less formal way, and there appears to be no significant association between moral obligation and tax compliance for immigrants, whereas this association is positive and significant for non-immigrants (Tuxhorn, Farrar, James and Wunderlich); • Fiscal belonging, as distinct from fiscal citizenship, appears to be a useful way of understanding tax paying practices, particularly amongst migrants (Björklund Larsen & Oats) • A fiscal citizenship concept tree has been developed in one study to synthesise insights from prior research into citizenship and willingness to pay taxes to serve as a tool to map and connect previous ideas and findings, derive innovate hypotheses and gain new insights. (Schmidt, Matthaei & Lauth). • A new model for measuring fiscal citizenship has been developed based on extensive survey data from samples in three countries (Canada, UK and Germany). The results show that fiscal citizenship is strong in all three cases and correlates positively with both formal tax compliance and broader willingness to pay taxes (Tuxhorn, Farrar, James, Wunderlich) • The introduction of automated risk management systems into tax administration processes creates new risks for fundamental taxpayer rights, which may particularly affect non-citizen taxpayers. One study finds that, in the German context, a deficit in democratic participation can be mitigated by a focus on protection of fundamental rights and procedural safeguards using new technologies (Schenke & Mohr). |
| Exploitation Route | The project has produced, and continues to produce, novel insights that will benefit a range of stakeholders including policy makers. In addition to empirical findings, several of the sub-projects have produced new models that can be adapted by scholars to different settings. |
| Sectors | Communities and Social Services/Policy Government Democracy and Justice Other |
| URL | https://fiscal-citizenship.com |
| Description | British Academy Small Research Grant |
| Amount | £9,384 (GBP) |
| Funding ID | SRG2223\231605 |
| Organisation | The British Academy |
| Sector | Academic/University |
| Country | United Kingdom |
| Start | 03/2023 |
| End | 08/2024 |
| Description | Banff Workshop |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | In-person workshop for project members to discuss current work, debate ideas and formulate possible policy outcomes of the project. The workshop was useful and productive, leading to new collaborations within the team and new research avenues being identified. |
| Year(s) Of Engagement Activity | 2023 |
| Description | Berlin Workshop |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | In December 2021 the project team and associated researchers met at an internal hybrid (face to face and online) workshop in Berlin. The meeting was extremely productive in terms of team building and exploring synergies between the various research interests of our multidisiplinary team. It led to the development of new avenues of research as well as honing the specifics of several projects. |
| Year(s) Of Engagement Activity | 2021 |
| Description | Exeter Workshop |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | Hybrid workshop for research project members to discuss and extend current research, begin formulating policy outcomes and establish new research areas. The woirkshop produced some clear paths for extending existing work, such as the extension of survey data and data sets, and new uses for existing data. The outline of policy recommendations was discussed and the method for disseminating such knowledge to relevant parties outlined. |
| Year(s) Of Engagement Activity | 2023 |
| Description | HMRC Stakeholder Conference 2023 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Professional Practitioners |
| Results and Impact | The stakeholder conference provided an opportunity to meet with tax professionals, charities and HMRC personnel and discuss issues relevant to the project. As a result, new contacts were made within the tax profession which has resulted in new relationships and useful conversations about tax administration, the use of technology in tax and disinfranchised groups such as migrants and the issues they face in interacting with the tax system. |
| Year(s) Of Engagement Activity | 2023 |
| Description | HMRC Stakeholder Conference 2024 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Professional Practitioners |
| Results and Impact | The Stakeholder conference provided an opportunity to meet with tax professionals, charities and HMRC personnel and discuss issues relevant to the project. Relationships with third-sector and private sector organisations were renewed and new contacts made which will hopefully result in new collaborations on tax issues. We were also able to directly discuss HMRC digital developments which are relevant to this project with HMRC personnel and to gain new contacts within the organisation as a result. A contact made at this conference last year is also now yielding a new collaboration on tax tech and its application for improving tax administration for taxpayers. |
| Year(s) Of Engagement Activity | 2024 |
| Description | HMRC Trust and Tax Administration work |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | National |
| Primary Audience | Professional Practitioners |
| Results and Impact | Discussion with HMRC about the scope of the project and potential overlap with work being done by HMRC in conjunction with OECD Forum on Tax Administration in the area of trust in tax administration. The meeting generated considerable interest in collaboration and follow up interactions include exchange of relevant materials and ideas. |
| Year(s) Of Engagement Activity | 2021 |
| Description | Roundtables |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Other audiences |
| Results and Impact | We conducted 8 virtual roundtable events with knowledgeable professionals with migration backgrounds in order to establish initial data to help with scoping the project. Participants were from the UK, Germany and Canada and spanned a range of ages and migration backgrounds. The roundtables provided significant insights that have been extremely helpful in designing the project work. Additionally they allowed us to showcase the forthcoming work and elicit further participation. |
| Year(s) Of Engagement Activity | 2021 |
| Description | Tax Forum Workshop, KCL London 2023 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Other audiences |
| Results and Impact | Seminar day to allow postgraduate students and tax practitioners to present research on European tax administration practices. An additional aim was the foundation of a PhD student network. Seminar day allowed an early career researcher to engage with a professional audience and gain useful feedback on their research. |
| Year(s) Of Engagement Activity | 2023 |
| Description | Tax Research Network Annual Conference 2022 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Other audiences |
| Results and Impact | Tax research conference attended by an international audience of academics and tax professionals which allowed for wide engagement with the project. Valuable feedback and discussions with other tax professionals were sparked by the paper. |
| Year(s) Of Engagement Activity | 2022 |
| Description | Tax Research Network Annual Conference 2023 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Other audiences |
| Results and Impact | Conference for academics and tax professionals which provided the opportunity to discuss multiple dimensions of the project with tax practitioners. This resulted in useful feedback and discussion about the project while publicising it to a wider audience. |
| Year(s) Of Engagement Activity | 2023 |
| Description | Tax conference, Norway 2023 |
| Form Of Engagement Activity | Participation in an activity, workshop or similar |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Other audiences |
| Results and Impact | Conference for academics and tax professionals with the theme of 'The Interlinking between Taxation, Citizenship and Democracy' held at the Norwegian Business School, Nydalen Campus which provided the opportunity to discuss multiple dimensions of the project with tax professionals and academics. This resulted in useful feedback and discussion about the project while publicising it to a wider audience. |
| Year(s) Of Engagement Activity | 2023 |
| Description | Website development |
| Form Of Engagement Activity | Engagement focused website, blog or social media channel |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Media (as a channel to the public) |
| Results and Impact | Construction of the project website took place in 2021 and 2022 and it went live in early 2022. The website reports project participants and funding, outputs from the project and invites participation from interested parties from within and outside of academia. |
| Year(s) Of Engagement Activity | 2021,2022 |
| URL | https://fiscal-citizenship.com |
| Description | Wurzburg Workshop |
| Form Of Engagement Activity | A formal working group, expert panel or dialogue |
| Part Of Official Scheme? | No |
| Geographic Reach | International |
| Primary Audience | Study participants or study members |
| Results and Impact | An internal hybrid workshop, held in May 2022 in Wurzburg, involving the project team and associated researchers. The meeting was extremely productive in terms of team building and exploring synergies between the various research interests of our multidisiplinary team. It led to the development of new avenues of research as well as further developing existing projects. |
| Year(s) Of Engagement Activity | 2022 |