Trust and power as determinants of tax compliance across 44 nations

Publication date: Available online 16 July 2019Source: Journal of Economic PsychologyAuthor(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 Alarcón-García, Ceyhan Aldemir, Oana Apostol, Diana Bank Weinberg, Ioan Batrancea, Alexis Belianin, Felipe de Jesús Bello GómezAbstractThe 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 eff...

Source: Journal of Economic Psychology - July 16, 2019 Category: Psychiatry & Psychology Source Type: research