Vol. 8 No. 1 (2018), Articles
Vol. 8 No. 1 (2018)

The impact of mental accounting on tax evasion (an experimental study in accounting students)

Articles
DOI: 10.14414/tiar.v8i1.1579
Published 2018-06-29
Aprilia Kardianzah Putri
Universitas Trunojoyo Madura
Tarjo Tarjo
Universitas Trunojoyo Madura
Achdiar Redy Setiawan
Universitas Trunojoyo Madura

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Keywords

Tax Evasion
Prospect Theory
Mental Accounting
Behavioral Finance

How to Cite

Putri, Aprilia Kardianzah, et al. “The Impact of Mental Accounting on Tax Evasion (an Experimental Study in Accounting Students)”. The Indonesian Accounting Review, vol. 8, no. 1, June 2018, pp. 36-45, https://doi.org/10.14414/tiar.v8i1.1579.
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Abstract

The purpose of this study is to fi nd out the impact of mental accounting on tax evasion decisions. This research is a quantitative research using experimental research methods. Analysis was conducted using 2x3 between subjects experimental design. The sample used in this experiment was accounting students at Trunojoyo University, Madura, with concentration on taxation. The results for all treatments in this study indicate that there are no differences between in gain scenario and loss scenario. These fi ndings can be explained by mental accounting and prospect theory. This study shows that individuals evaluate tax payments and tax refunds asymmetrically. In addition, the individuals also underlie mental accounting when making tax evasion decisions.