Perceptions of trust and power are associated with tax compliance: A cross-cultural study

Christoph Kogler*, Jerome Olsen, Erich Kirchler, Larissa M. Batrancea, Anca Nichita

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

5 Citations (Scopus)
92 Downloads (Pure)

Abstract

The slippery slope framework (SSF) of tax compliance postulates that taxpayers’ compliance behaviour depends on the two dimensions: trust in authorities and power of authorities. In an attempt to overcome common-method biases, the present study tests the main assumptions of the SSF with a sample of 44 countries/regions. Country/region-level trust and power indices are calculated based on experimental data involving 14,509 participants and related to shadow economy estimates and – as an alternative indicator of non-compliance – corruption indices. The results indicate that both trust and power are negatively related to the size of the shadow economy and the extent of corruption. These results emphasise the importance of both SSF dimensions in combating tax evasion and counterproductive behaviour within a society in general.
Original languageEnglish
Pages (from-to)365-381
JournalEconomic and Political Studies
Volume11
Issue number3
DOIs
Publication statusPublished - 2023

Keywords

  • ASSUMPTIONS
  • CORRUPTION
  • CRIMES
  • EMPIRICAL-ANALYSIS
  • GOVERNMENT
  • IMPACT
  • SHADOW ECONOMY
  • SLIPPERY SLOPE FRAMEWORK
  • STUDENTS
  • TAXPAYERS
  • Trust
  • corruption
  • power
  • shadow economy
  • tax compliance
  • tax evasion

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