Trust and power as determinants of tax compliance across 44 nations

Author(s): Larissa Batrancea, Anca Nichita, Jerome Olsen, Christoph Kogler, Erich Kirchler, Erik Hoelzl, Avi Weiss, Benno Torgler, Jonas Fooken, Joanne Fuller, Markus Schaffner, Sheheryar Banuri, Medhat Hassanein, Gloria Alarcon-Garcia, Ceyhan Aldemir, Oana Apostol, Diana Bank Weinberg, Joan Batrancea, Alexis Belianin, Felipe de Jesus Bello Gomez, Marie Briguglio, Valerij Dermol, Elaine Doyle, Rebone Gcabo, Binglin Gong, Sara Ennya, Anthony Essel-Anderson, Jane Frecknall-Hughes, Ali Hasanain, Yoichi Hizen, Odilo Huber, Georgia Kaplanoglou, Janusz Kudla, Jeremy E. Lemoine, Supanika Leurcharusmee, Thorolfur Matthiasson, Sanjeev Mehta, Sejin Min, George Naufal, Mervi Niskanen, Katarina Nordblom, Engin Bagis Ozturk, Luis Pacheco, Jozsef Pantya, Vassilis Rapanos, Christine Roland-Levy, Ana Maria Roux-Cesar, Aidin Salamzadeh, Lucia Savadori, Vidar Scheibe, Manoj Sharma, Barbara Summers, Komsan Suriya, Quoc Tran, Clara Villegas-Palacio, Martine Visser, Chun Xia, Sunghwan Yi, Sarunas Zukauskas
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 intentionsand 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.
Organisation(s): Department of Occupational, Economic and Social Psychology
External organisation(s): Babeș-Bolyai University, "1 Decembrie 1918" University, Tilburg University, Fachhochschule Köln, Bar-Ilan University (BIU), New York University, IZA - Institute of Labor Economics, Queensland University of Technology, Center for Research in Economics, Management and the Arts, Eliiza, University of East Anglia, Alexandria University, The American University in Cairo, Universidad de Murcia, Dokuz Eylül University Research and Application Hospital, Turku University Hospital, Hochschule für Wirtschaft und Recht Berlin, National Research University, Russian Academy of Sciences, Universidad Americas Puebla (UDLAP), University of Malta, International School for Business and Social Studies, University of Limerick, University of Pretoria, East China Normal University, Ibn Zohr University, Asheshi University, Nottingham Trent University, Lahore University of Management Sciences, School of Economics & Management, Kochi University of Technology, Kami City 782-8502, Japan., Université de Fribourg, National & Kapodistrian University of Athens, University of Economics and Human Sciences in Warsaw, University of East London, ESCP Europe Business School, Chiang Mai University, University of Iceland, Royal Thimphu College, Dongguk University, University of Texas at El Paso, Texas A&M University, University of Eastern Finland, University of Gothenburg, Uppsala University, Portucalense University, Eötvös Loránd University Budapest, Hungarian Academy of Sciences, University of Debrecen, Academy of Athens, Équipe Chimie des Substances Naturelles, Mackenzie Presbyterian University, University of Tehran, Università degli Studi di Trento, Norwegian School of Economics, National Institute of Technology Hamirpur, Leeds Trinity University, Massachusetts System of Public Higher Education, Bridgewater State University, Universidad Nacional de Colombia, University of Cape Town, Education University of Hong Kong, Noah Holdings Ltd, University of Guelph, Mykolas Romeris University
Journal: Journal of Economic Psychology
Volume: 74
No. of pages: 15
ISSN: 0167-4870
DOI: https://doi.org/10.1016/j.joep.2019.102191
Publication date: 10-2019
Peer reviewed: Yes
Austrian Fields of Science 2012: 501002 Applied psychology, 501029 Economic psychology
Keywords
ASJC Scopus subject areas: Economics and Econometrics, Sociology and Political Science, Applied Psychology
Portal url: https://ucrisportal.univie.ac.at/en/publications/87bb5ff8-ebeb-4271-b86f-f6114e1ce9a5