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

Author(s)
Christoph Kogler, Jerome Olsen, Erico Kirchler, Larissa Batrancea, Anca Nichita
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.

Organisation(s)
Department of Occupational, Economic and Social Psychology
External organisation(s)
Tilburg University, Babeș-Bolyai University, Max-Plank Institut zur Erforschung von Gemeinschaftsgütern, IHS - Institut für Höhere Studien und wissenschaftliche Forschung
Journal
Economic and Political Studies
Volume
11
Pages
365-381
No. of pages
17
DOI
https://doi.org/10.1080/20954816.2022.2130501
Publication date
2022
Peer reviewed
Yes
Austrian Fields of Science 2012
501029 Economic psychology
Keywords
ASJC Scopus subject areas
Economics and Econometrics, Political Science and International Relations, Sociology and Political Science
Portal url
https://ucrisportal.univie.ac.at/en/publications/8c0e8694-c952-47ad-9b99-d637c33d2e79