Browsing by Author "Saroca, Maegan S."

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    Self-reported versus 'expected' income taxes paid in the FIES 2009: why the gap?
    (2015) Saroca, Maegan S.; Sollegue, Shanica Sen V.; Monsod, Toby Melissa C.
    Various studies have found socioeconomic and demographic factors to have an impact on truth-telling in surveys. Additionally, existing literature have emphasized the importance of tax morale in answering questions relating to income tax. In this light, the study aims to determine whether, how, and why self-reported income taxes by households in the FIES 2009 vary from 'expected' income taxes of those same households. Its goal is to find factors - specifically socioeconomic and demographic factors - which may possibly explain the nature of the variations. In doing so, three steps were done: 1.) 'expected' income taxes per household were computed using the Bureau of Internal Revenue Income Tax guidelines, 2.) 'expected' income taxes were compared with self-reported income taxes, and any difference or gap 1 was established. The size of the gap, if any, is considered a proxy for the degree of truth-telling by each respondent, and 3.) the gap was regressed against demographic and socioeconomic factors which have been identified in the literature as being relevant to truth-telling by respondents in surveys. The study found that out of the 38, 400 households interviewed, 7, 467 or 19.44% had 'expected' income taxes differing with their self-reported income taxes. It also found that income docile, sex, major source of income, education of household heads, age, and specific regions were statistically and practically significant. Smaller gaps were found for the first nine income deciles relative to the tenth docile, and for households with entrepreneurial activities and other source of income as major source of income relative to wages/salaries households. Larger gaps, on the other hand, were seen for college graduate household heads relative to household heads with no grade be used as an estimate for the degree of truth-telling of the respondents in the said survey. Completed, male household heads relative to female household heads, older household heads, and various regions.