A summary of the variables discussed in the hypotheses is provided in Table 1. Table 1 Summary of Variables in Hypotheses Hypothesis and Related Description Proposed Relation to Tip Significance Variables Reporting Compliance H1 Form of Tips Cash, credit card, or other Credit card = high Yes – compliance Cash and other = lower compliance H2 Ethical Position: Actions that are morally right Higher idealism = higher No – Idealism always have positive results compliance for self and others H2 Ethical Position: Actions are on the Higher relativism = lower No – Relativism situation and what enhances compliance personal position rather than that for others H3 Negative Perception Correct reporting is moral Negative perception = No – of Underreporting and/or the underreporting of higher compliance tax income has negative consequences. H4 Positive Perception Underreporting is beneficial Positive perception = lower Yes – of Underreporting and an act of civil compliance disobedience H5 Overall Negative A taxpayer does not like Negative perception = lower No – Perception of Taxation taxes and wants to minimize compliance paying taxes H6 Overall Positive A taxpayer paying taxes Positive perception = higher Yes – Perception of Taxation a duty or responsibility of compliance good citizenship H7 Perception of The responsibility to report Positive perception = higher Yes – Taxation of Tips all tax income compliance H8 Knowledge of Tax Understanding of actual tip Higher tax knowledge = Yes – Reporting Requirements reporting requirements higher compliance
A summary of the variables discussed in the hypotheses is provided in Table 1. Table 1 Summary of Variables in Hypotheses Hypothesis and Related Variables Description Proposed Relation to Tip Reporting Compliance Significance H1 – Form of Tips Cash, credit card, or other Credit card = high compliance Cash and other = lower compliance Yes H2 – Ethical Position: Idealism Actions that are morally right always have positive results for self and others Higher idealism = higher compliance No H2 – Ethical Position: Relativism Actions are on the situation and what enhances personal position rather than that for others Higher relativism = lower compliance No H3 – Negative Perception of Underreporting Correct reporting is moral and/or the underreporting of tax income has negative consequences. Negative perception = higher compliance No H4 – Positive Perception of Underreporting Underreporting is beneficial and an act of civil disobedience Positive perception = lower compliance Yes H5 – Overall Negative Perception of Taxation A taxpayer does not like taxes and wants to minimize paying taxes Negative perception = lower compliance No H6 – Overall Positive Perception of Taxation A taxpayer paying taxes a duty or responsibility of good citizenship Positive perception = higher compliance Yes H7 – Perception of Taxation of Tips The responsibility to report all tax income Positive perception = higher compliance Yes H8 – Knowledge of Tax Reporting Requirements Understanding of actual tip reporting requirements Higher tax knowledge = higher compliance Yes
tip_reporting_intentions_submission.docx