The influence of religiosity on tax evasion attitudes in Lebanon

Abstract

This paper explores tax evasion attitudes and their association with religiosity in a religiously diverse context characterized by a weak tax administration. The study investigates linkages between tax evasion attitudes and religiosity levels from a new angle by comparing Christians and Muslims and examining the motives behind tax evasion. The results show that religiosity is not a major explanatory variable affecting tax evasion attitudes. Some demographic variables, such as income and education, seem to have more impact on tax evasion. Income was found to be a very important predictor of tax evasion, as it is negatively associated with all types of tax evasion. Education is only negatively correlated with tax evasion attitudes emanating from perceptions of injustices in the tax system (JSTE) but not with tax evasion attitudes emanating from self-interest (SITE). Religious affiliation seems to temper the relationship between religiosity and SITE but not JSTE. The findings also show that religiosity moderates the relationship between income and JSTE, but has no moderating role on SITE. The results are explained in light of the different religious views on tax evasion.