The slippery slope framework of tax compliance emphasizes the importance of trust in authorities as a substantial determinant of tax compliance alongside traditional enforcement tools like audits and fines. Using data from an experimental scenario study in 44 nations from five continents (N = 14,509), we find that trust in authorities and power of authorities, as defined in the slippery slope framework, increase tax compliance intentions and mitigate intended tax evasion across societies that differ in economic, sociodemographic, political, and cultural backgrounds. We also show that trust and power foster compliance through different channels: trusted authorities (those perceived as benevolent and enhancing the common good) register the highest voluntary compliance, while powerful authorities (those perceived as effectively controlling evasion) register the highest enforced compliance. In contrast to some previous studies, the results suggest that trust and power are not fully complementary, as indicated by a negative interaction effect. Despite some between-country variations, trust and power are identified as important determinants of tax compliance across all nations. These findings have clear implications for authorities across the globe that need to choose best practices for tax collection.
Trust and power as determinants of tax compliance across 44 nations / Batrancea, L.; Nichita, A.; Olsen, J.; Kogler, C.; Kirchler, E.; Hoelzl, E.; Weiss, A.; Torgler, B.; Fooken, J.; Fuller, J.; Schaffner, M.; Banuri, S.; Hassanein, M.; Alarcon-Garcia, G.; Aldemir, C.; Apostol, O.; Bank Weinberg, D.; Batrancea, I.; Belianin, A.; Bello Gomez, F. D. J.; Briguglio, M.; Dermol, V.; Doyle, E.; Gcabo, R.; Gong, B.; Ennya, S.; Essel-Anderson, A.; Frecknall-Hughes, J.; Hasanain, A.; Hizen, Y.; Huber, O.; Kaplanoglou, G.; Kudla, J.; Lemoine, J. E.; Leurcharusmee, S.; Matthiasson, T.; Mehta, S.; Min, S.; Naufal, G.; Niskanen, M.; Nordblom, K.; Ozturk, E. B.; Pacheco, L.; Pantya, J.; Rapanos, V.; Roland-Levy, C.; Roux-Cesar, A. M.; Salamzadeh, A.; Savadori, L.; Schei, V.; Sharma, M.; Summers, B.; Suriya, K.; Tran, Q.; Villegas-Palacio, C.; Visser, M.; Xia, C.; Yi, S.; Zukauskas, S.. - In: JOURNAL OF ECONOMIC PSYCHOLOGY. - ISSN 0167-4870. - ELETTRONICO. - 74:(2019), p. 102191. [10.1016/j.joep.2019.102191]
Trust and power as determinants of tax compliance across 44 nations
Savadori L.;
2019-01-01
Abstract
The slippery slope framework of tax compliance emphasizes the importance of trust in authorities as a substantial determinant of tax compliance alongside traditional enforcement tools like audits and fines. Using data from an experimental scenario study in 44 nations from five continents (N = 14,509), we find that trust in authorities and power of authorities, as defined in the slippery slope framework, increase tax compliance intentions and mitigate intended tax evasion across societies that differ in economic, sociodemographic, political, and cultural backgrounds. We also show that trust and power foster compliance through different channels: trusted authorities (those perceived as benevolent and enhancing the common good) register the highest voluntary compliance, while powerful authorities (those perceived as effectively controlling evasion) register the highest enforced compliance. In contrast to some previous studies, the results suggest that trust and power are not fully complementary, as indicated by a negative interaction effect. Despite some between-country variations, trust and power are identified as important determinants of tax compliance across all nations. These findings have clear implications for authorities across the globe that need to choose best practices for tax collection.File | Dimensione | Formato | |
---|---|---|---|
Batrancea et al Tax compliance JEP.pdf
Open Access dal 12/07/2021
Descrizione: pdf pubblicazione
Tipologia:
Post-print referato (Refereed author’s manuscript)
Licenza:
Creative commons
Dimensione
2.35 MB
Formato
Adobe PDF
|
2.35 MB | Adobe PDF | Visualizza/Apri |
Batrancea et al. 2019 Trust and power as determinants of tax compliance.pdf
Solo gestori archivio
Tipologia:
Versione editoriale (Publisher’s layout)
Licenza:
Tutti i diritti riservati (All rights reserved)
Dimensione
1.58 MB
Formato
Adobe PDF
|
1.58 MB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione