Enforcement or Cooperation – An Analysis of the Compliance Psychology of Taxpayers

There is increasing emphasis on moving from an enforcement model of tax compliance to voluntary cooperation. This article analyses both concepts as well as the compliance behaviour of taxpayers on a psychological level as well as in the context of their culture, and proposes a framework to synthesize individual behaviour and national culture with the optimum enforcement-cooperation mix that would be best suited for maximizing tax collection in a particular jurisdiction.