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Taxing Times: An Educational Intervention to Enhance Moral

Reasoning in Tax

The Open University Business School

Workshop - 9th April 2014

Dr. Elaine Doyle

University of Limerick

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Literature

Methodology

Results Conclusions

In summary…

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Tax Practitioners and Ethics

OECD Report

Tax avoidance and ‘unacceptable’ tax planning

Growing concern regarding the ethical behaviour of tax practitioners

Recognition of an ethical dimension to tax in literature and beyond

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Cognitive moral development (CMD)

Before reaching a decision about

how to behave ethically in specific

situations, ethical or moral

reasoning takes place at a

cognitive level

The psychology of moral

reasoning aims to understand

thought processes about moral

dilemmas, i.e., the state of mind of

the decision maker and the

processes individuals use in

approaching dilemmas

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Kohlberg’s 6 stage model of moral development

(1973)

Pre-conventional:

focuses on the

individual

Conventional:

focuses on the group

and relationships

Post-conventional:

focuses on the inner

self and personally

held principles

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Moral reasoning assessment

Rest and the Defining Issues Test (DIT)

The P score

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Education and Moral Reasoning Prior research has shown that education

enhances moral reasoning development (30-50%) (Bebeau & Thoma, 2003)

“prods students to re-examine their thoughts about the moral basis of society and to value post-conventional reasoning more and more” (Rest 1999)

Moral reasoning can be enhanced through certain forms of instruction, labelled intervention studies (Rest, 1986)

Many studies suggest a deficiency in the CMD of accounting students and accountants!

Context important (Doyle et al., 2012)

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Research Objective

To design an effective tax

context-specific ethical

intervention and to test its

effectiveness in enhancing

cognitive moral

development using an

instrument designed to

capture moral reasoning

in a tax domain as well as

in the broad social domain

typically examined

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Research Methods

1. Development of an

educational intervention

2. Metrics for measuring

effectiveness (pre and

post intervention / DIT &

TPDIT)

3. Students’ perceptions of

salient issues

4. Focus group with

students

Intervention – On-Line

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Findings

On-line Discussion contributions

Pre and post moral reasoning scores

Focus Group findings

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Discussions

General Views

Legal Rules

Junior Status

Pleasing client/boss

Personal Gains

Personal responsibility & Professionalism

Culture

Benefit from Tax Revenue

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Moral Reasoning Scores

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Moral Reasoning Scores

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Focus Group

Benefits

Content & logistics

Suggestions

DIT Scores

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Conclusions Place for ethics in business?

Compliance with the law

Career reasons to be ethical

Low level moral reasoning

Powerlessness in face of organisational hierarchy

We need to do more as educators to arm students with tools they need

Intervention effective per focus group findings

Whole programme approach necessary

Importance of context

Improving the intervention

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Questions?