The impact of powerful authorities and trustful tax payers: Evidence for the extended slippery slope framework from Austria, Finland and Hungary

Gangl, Katharina and Hofmann, Eva ORCID: https://orcid.org/0000-0001-7934-0128 and Hartl, Barbara and Berkics, Mihaly (2019) The impact of powerful authorities and trustful tax payers: Evidence for the extended slippery slope framework from Austria, Finland and Hungary. Policy Studies. pp. 1-15. ISSN 1470-1006

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Abstract

Tax authorities utilize a wide range of instruments to motivate honest taxpaying ranging from strict audits to fair procedures or personalized support, differing from country to country. However, little is known about how these different instruments and taxpayers' trust influence the generation of interaction climates between tax authorities and taxpayers, motivations to comply, and particularly, tax compliance. The present research examines the extended slippery slope framework (eSSF), which distinguishes tax authorities' instruments into different qualities of power of authority (coercive and legitimate) and trust in authorities (reasonbased and implicit), to shed light on the effect of differences between power and trust. We test eSSF assumptions with survey data from taxpayers from three culturally different countries (N = 700) who also vary concerning their perceptions of power, trust, interaction climates, and tax motivations. Results support assumptions of the eSSF. Across all countries, the relation of coercive power and tax compliance was mediated by implicit trust, which leads to an antagonistic climate and enforced motivation. The connection from legitimate power to tax compliance is partially mediated by reason-based trust. The relationship between implicit trust and tax compliance is mediated by a confidence climate and committed cooperation. Theoretical and practical implications are discussed.

Item Type: Article
Additional Information: This study was partly financed by the Austrian Science Fund (FWF), project number P24863-G16.
Keywords: Tax compliance; tax evasion; trust; relationship climate
Divisions: Departments > Marketing > Internationales Marketing Management
Kompetenzzentren > Empirische Forschungsmethoden
Version of the Document: Published
Depositing User: Gertraud Novotny
Date Deposited: 13 Feb 2019 10:44
Last Modified: 07 Nov 2019 15:10
Related URLs:
FIDES Link: https://bach.wu.ac.at/d/research/results/90035/
URI: https://epub.wu.ac.at/id/eprint/6829

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