Fraud Triangle Theory and Income Tax Evasion in Lebanon

(Pages 761-775)

Ahmad Mohamad Abdo-Salloum1,2,*, Hasan Yousef Al-Mousawi1
1Doctoral School of Law, Political, Administrative and Economic Sciences - Lebanese University, Beirut, Lebanon.
2Department of Accounting Information Systems, Lebanese International University, Tripoli, Lebanon.


Tax revenues are a critical source of income for the Lebanese government. However, tax evasion remains pervasive in the country, with income tax evasion being the most prominent type. This results in an annual loss of $2 billion, which equates to around 3.9% of the GDP. As a result, effective measures must be implemented to reduce income tax evasion in Lebanon. To achieve this, the root causes of income tax evasion in Lebanon must be clearly identified so that the policymakers can respond and take necessary action. Thus, this study aims to explore the relationship between the components of the Fraud Triangle Theory and the behavior of taxpayers in committing income tax evasion in Lebanon. The study also seeks to assess the correlation between the factors of the Fraud Triangle Theory and taxpayer behavior, and subsequently, determine the intensity of each factor and the most significant factor. The research methodology used is quantitative, with a survey strategy employed for data collection through a questionnaire. The study population comprises income taxpayers in Lebanon, with a random sample selected for the study. The data collected are analyzed using SPSS, including reliability testing, ANOVA testing, regression analysis, and Pearson correlation. The findings indicate that opportunities, rationalization, and capabilities are significant factors in committing income tax evasion in Lebanon. However, the study also revealed that pressures, mistrust in politicians, lack of motivation for tax compliance, and financial instability are not significant factors. Nonetheless, these factors indirectly affect income tax evasion in Lebanon as they trigger the rationalization of evading taxes. In conclusion, reducing income tax evasion in Lebanon is essential for the country's economic stability. This study contributes to the understanding of the factors influencing income tax evasion and provides a basis for future research in this area. The findings suggest that policymakers should focus on reducing opportunities for income tax evasion and addressing the rationalization and capabilities of evading taxes.


Income tax evasion, Fraud Triangle Theory, Opportunities, Rationalization, Capabilities, Pressures.

How to Cite:

Ahmad Mohamad Abdo-Salloum, Hasan Yousef Al-Mousawi. Fraud Triangle Theory and Income Tax Evasion in Lebanon. [ref]: vol.21.2023. available at:

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