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

Larissa M. Batrancea; Anca Nichita; Ruggero De Agostini; Fabricio Batista Narcizo; Denis Forte; Samuel de 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; Tamer Budak

doi:10.1186/s40854-022-00404-y

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

Larissa M. Batrancea, Anca Nichita, Ruggero De Agostini, Fabricio Batista Narcizo, Denis Forte, Samuel de 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, Tamer Budak

Computer Science

Research output: Journal Article or Conference Article in Journal › Journal article › Research › peer-review

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.

Original language	English
Article number	96
Journal	Financial Innovation
Volume	8
Issue number	1
Pages (from-to)	1-23
Number of pages	23
ISSN	2199-4730
DOIs	https://doi.org/10.1186/s40854-022-00404-y
Publication status	Published - 23 Nov 2022

Keywords

Self‐employed taxpayers
Slippery slope framework
Voluntary tax compliance
Enforced tax compliance
Tax evasion

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Batrancea, L. M., Nichita, A., De Agostini, R., Batista Narcizo, F., Forte, D., Mamede, S. D. P. N., Roux‐Cesar, A. M., Nedev, B., Vitek, L., Pántya, J., Salamzadeh, A., Nduka, E. K., Kudła, J., Kopyt, M., Pacheco, L., Maldonado, I., Isaga, N., Benk, S., & Budak, T. (2022). A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries. Financial Innovation, 8(1), 1-23. Article 96. https://doi.org/10.1186/s40854-022-00404-y

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

abstract = "The slippery slope framework explains tax compliance along two main dimensions, trust in authorities and power of authorities, which influence taxpayers{\textquoteright} compliance attitudes. Through frequentist and Bayesian analyses, we investigated the framework{\textquoteright}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{\textquoteright}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, Self‐employed taxpayers, Slippery slope framework, Voluntary tax compliance, Enforced tax compliance, Tax evasion",

author = "Batrancea, {Larissa M.} and Anca Nichita and {De Agostini}, Ruggero and {Batista Narcizo}, Fabricio and Denis Forte and Mamede, {Samuel de Paiva Neves} and Roux‐Cesar, {Ana Maria} and Bozhidar Nedev and Leo{\v s} Vitek and J{\'o}zsef P{\'a}ntya and Aidin Salamzadeh and Nduka, {Eleanya K.} and Janusz Kud{\l}a and Mateusz Kopyt and Luis Pacheco and Isabel Maldonado and Nsubili Isaga and Serkan Benk and Tamer Budak",

year = "2022",

month = nov,

day = "23",

doi = "10.1186/s40854-022-00404-y",

language = "English",

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journal = "Financial Innovation",

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Batrancea, LM, Nichita, A, De Agostini, R, Batista Narcizo, F, Forte, D, Mamede, SDPN, Roux‐Cesar, AM, Nedev, B, Vitek, L, Pántya, J, Salamzadeh, A, Nduka, EK, Kudła, J, Kopyt, M, Pacheco, L, Maldonado, I, Isaga, N, Benk, S & Budak, T 2022, 'A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries', Financial Innovation, vol. 8, no. 1, 96, pp. 1-23. https://doi.org/10.1186/s40854-022-00404-y

TY - JOUR

T1 - A self-employed taxpayer experimental study on trust, power, and tax compliance in eleven countries

AU - Batrancea, Larissa M.

AU - Nichita, Anca

AU - De Agostini, Ruggero

AU - Batista Narcizo, Fabricio

AU - Forte, Denis

AU - Mamede, Samuel de Paiva Neves

AU - Roux‐Cesar, Ana Maria

AU - Nedev, Bozhidar

AU - Vitek, Leoš

AU - Pántya, József

AU - Salamzadeh, Aidin

AU - Nduka, Eleanya K.

AU - Kudła, Janusz

AU - Kopyt, Mateusz

AU - Pacheco, Luis

AU - Maldonado, Isabel

AU - Isaga, Nsubili

AU - Benk, Serkan

AU - Budak, Tamer

PY - 2022/11/23

Y1 - 2022/11/23

N2 - 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.

AB - 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.

KW - Self‐employed taxpayers

KW - Slippery slope framework

KW - Voluntary tax compliance

KW - Enforced tax compliance

KW - Tax evasion

KW - Self‐employed taxpayers

KW - Slippery slope framework

KW - Voluntary tax compliance

KW - Enforced tax compliance

KW - Tax evasion

U2 - 10.1186/s40854-022-00404-y

DO - 10.1186/s40854-022-00404-y

M3 - Journal article

SN - 2199-4730

VL - 8

SP - 1

EP - 23

JO - Financial Innovation

JF - Financial Innovation

IS - 1

M1 - 96

ER -

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

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Keywords

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