1 Taxing Times: An Educational Intervention to Enhance Moral Reasoning in Tax Taxing Times: An Educational Intervention to Enhance Moral Reasoning in Tax EDiNEB Annual Conference 2013 Milton Keynes June 5 th -7th Dr. Elaine Doyle University of Limerick

2 Literature Methodology Results Conclusions In summary…

3 Tax Practitioners and Ethics n n OECD Report n n Tax avoidance and ‘unacceptable’ tax planning n n Growing concern regarding the ethical behaviour of tax practitioners n n Recognition of an ethical dimension to tax in literature and beyond

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5 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

6 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

7 Moral reasoning assessment n Rest and the Defining Issues Test (DIT) n The P score

8 Education and Moral Reasoning n Prior research has shown that education enhances moral reasoning development (30- 50%) (Bebeau & Thoma, 2003) n “prods students to re-examine their thoughts about the moral basis of society and to value post-conventional reasoning more and more” (Rest 1999) n Moral reasoning can be enhanced through certain forms of instruction, labelled intervention studies (Rest, 1986) n Many studies suggest a deficiency in the CMD of accounting students and accountants! n Context important (Doyle et al., 2012)

9 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

10 Research Methods Development of an educational intervention Metrics for measuring effectiveness (pre and post intervention / DIT & TPDIT) Students’ perceptions of salient issues Focus group with students

Intervention – On-Line 11

FindingsFindings On-line Discussion contributions Pre and post moral reasoning scores Focus Group findings 12

Discussions General Views Legal Rules Junior Status Pleasing client/boss Personal Gains Personal responsibility & Professionalism Culture Benefit from Tax Revenue 13

Moral Reasoning Scores 14

Moral Reasoning Scores 15

16 Focus Group Benefits Content & logistics Suggestions DIT Scores

17ConclusionsConclusions n Place for ethics in business? n Compliance with the law n Career reasons to be ethical n Low level moral reasoning n Powerlessness in face of organisational hierarchy n We need to do more as educators to arm students with tools they need n Intervention effective per focus group findings n Whole programme approach necessary n Importance of context n Improving the intervention

18 Questions and feedback?