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A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries

Author

Listed:
  • Larissa M. Batrancea

    (Babeş-Bolyai University)

  • Anca Nichita

    (“1 Decembrie 1918” University of Alba Iulia)

  • Ruggero Agostini

    (University of York
    BPP University)

  • Fabricio Batista Narcizo

    (IT University of Copenhagen
    GN Audio As (Jabra))

  • Denis Forte

    (Mackenzie Presbyterian University)

  • Samuel Paiva Neves Mamede

    (Mackenzie Presbyterian University)

  • Ana Maria Roux-Cesar

    (Mackenzie Presbyterian University)

  • Bozhidar Nedev

    (Sofia University “St. Kliment Ohridski”)

  • Leoš Vitek

    (Prague University of Economics and Business)

  • József Pántya

    (ELTE Eötvös Loránd University)

  • Aidin Salamzadeh

    (University of Tehran)

  • Eleanya K. Nduka

    (University of Nigeria)

  • Janusz Kudła

    (University of Warsaw)

  • Mateusz Kopyt

    (University of Warsaw)

  • Luis Pacheco

    (Portucalense University)

  • Isabel Maldonado

    (Portucalense University)

  • Nsubili Isaga

    (Mzumbe University)

  • Serkan Benk

    (Inonu University)

  • Tamer Budak

    (Alanya Alaaddin Keykubat University)

Abstract

The slippery slope framework explains tax compliance along two main dimensions, trust in authorities and power of authorities, which influence taxpayers’ compliance attitudes. Through frequentist and Bayesian analyses, we investigated the framework’s assumptions on a sample of 2786 self-employed taxpayers from eleven post-communist and non-post-communist countries doing business in five economic branches. After using scenarios that experimentally manipulated trust and power, our results confirmed the framework’s assumptions regarding the attitudes of the self-employed taxpayers; trust and power fostered intended tax compliance and diminished tax evasion, trust boosted voluntary tax compliance, whereas power increased enforced tax compliance. Additionally, self-employed taxpayers from post-communist countries reported higher intended tax compliance and lower tax evasion than those from non-post-communist countries. Our results offer tax authorities insights into how trust and power may contribute to obtaining and maintaining high tax compliance levels amid global economic challenges, downturns, and increasing tax compliance costs.

Suggested Citation

  • Larissa M. Batrancea & Anca Nichita & Ruggero Agostini & Fabricio Batista Narcizo & Denis Forte & Samuel Paiva Neves Mamede & Ana Maria Roux-Cesar & Bozhidar Nedev & Leoš Vitek & József Pántya & Aidin, 2022. "A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-23, December.
    • Handle: RePEc:spr:fininn:v:8:y:2022:i:1:d:10.1186_s40854-022-00404-y
    DOI: 10.1186/s40854-022-00404-y
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    References listed on IDEAS

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    2. Gaofei Wang & Yi Yang, 2024. "Quantitative Evaluation of Digital Economy Policy in Heilongjiang Province of China Based on the PMC-AE Index Model," SAGE Open, , vol. 14(1), pages 21582440241, March.

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    More about this item

    Keywords

    Self-employed taxpayers; Slippery slope framework; Voluntary tax compliance; Enforced tax compliance; Tax evasion;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General

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