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

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 Salamzadeh, Eleanya K. Nduka, Janusz Kudła, Mateusz Kopyt, Luis Pacheco, Isabel Maldonado, Nsubili Isaga, Serkan Benk and Tamer Budak
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Larissa M. Batrancea: Babeş-Bolyai University
Anca Nichita: “1 Decembrie 1918” University of Alba Iulia
Ruggero Agostini: University of York
Fabricio Batista Narcizo: IT University of Copenhagen
Denis Forte: Mackenzie Presbyterian University
Samuel Paiva Neves Mamede: Mackenzie Presbyterian University
Ana Maria Roux-Cesar: Mackenzie Presbyterian University
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
Luis Pacheco: Portucalense University
Isabel Maldonado: Portucalense University
Nsubili Isaga: Mzumbe University
Serkan Benk: Inonu University
Tamer Budak: Alanya Alaaddin Keykubat University

Financial Innovation, 2022, vol. 8, issue 1, 1-23

Abstract: 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.

Keywords: Self-employed taxpayers; Slippery slope framework; Voluntary tax compliance; Enforced tax compliance; Tax evasion (search for similar items in EconPapers)
JEL-codes: H10 H20 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1186/s40854-022-00404-y

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