Purpose Governments worldwide face the challenge of tax evasion, which diminishes public revenue and worsens economic disparities. This study examines the intricate relationships among deviant culture, inadequate law enforcement, and administrative corruption, and their effects on tax evasion. Deviant culture, defined by social norms that allow unethical conduct, is a key driver of noncompliance. Concurrently, weak law enforcement and administrative corruption amplify this effect by fostering impunity. Design/methodology/approach This study employs partial least squares structural equation modeling (PLS-SEM) to test a conceptual model using 459 responses from taxpayers in Baghdad, Iraq, producing substantial empirical evidence. Findings The findings indicate that while deviant culture does not directly impact tax evasion, its effect becomes severe when mediated by poor law enforcement and administrative corruption. Moreover, the sequential mediation of weak law enforcement and administrative corruption illustrates the crucial influence of institutional weaknesses in facilitating noncompliant behavior. Originality/value This study enhances the literature by integrating cultural, institutional, and behavioral viewpoints to examine tax evasion within the context of a developing nation. The findings hold implications for policymakers, emphasizing the necessity for comprehensive approaches that address cultural norms, strengthen law enforcement capabilities, and tackle administrative corruption to effectively limit tax evasion.
Al-Jundi et al. (Thu,) studied this question.