Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Trust and power as predictors to tax compliance: Global evidence
Issue: Vol. 12, No 2, 2019
Published date: 06-2019 (print) / 06-2019 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Abdulsalam Mas’ud
Universiti Utara Malaysia

Nor Aziah Abd Manaf
Universiti Utara Malaysia

Natrah Saad
Universiti Utara Malaysia
Keywords: power, slippery slope framework, tax compliance, trust
DOI: 10.14254/2071-789X.2019/12-2/11
Index PUBMS: 71ecaad1-ad4a-11e9-bbfd-fa163e0fa1a0
Language: English
Pages: 192-204 (13)
JEL classification: H20, H24, H25, H26
Website: https://www.economics-sociology.eu/?671,en_trust-and-power-as-predictors-to-tax-compliance-global-evidence
Licenses:
Abstract

Slippery Slope Framework has attracted exceptional attention from researchers in economic psychology and taxation field through validation by renowned scholars via variety of surveys and experimental designs. However, application of cross-sectional analysis in validating the framework has been scant, the available studies being focused on a single continent only. This study aims to test the assumptions of “Slippery Slope Framework” through examination of the influence of trust in authorities and power of authorities on tax compliance globally. The sample of 158 countries was selected as of 2016. Data was analyzed through Ordinary Least Squares Regression Analysis. The results reveal that trust in authorities significantly influences tax compliance, but power of authorities does not. Additionally, the interaction effect of trust and power on tax compliance has not been established through this cross-country analysis. Practically, the results suggest that authorities should ensure judicious use of taxpayer monies in the provision of public goods and services, and also fairness and equity among taxpayers. Eventually, these will enhance trust and improve tax compliance. Theoretically, the study calls for disaggregation analyses where each continent will be studied individually for replication of these findings and establishing the interaction effect wherever possible.

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