Exploring Voluntary Tax Compliance Factors in Slovenia: Implications for Tax Administration and Policymakers

Abstract

In this paper we test the significance of norms and trust in authorities for voluntary tax compliance in Slovenia. The empirical analysis has shown that national and social norms are significant factor of tax compliance, whilst trust in authorities (the Parliament and the European Union) was not proved as significantly related variables of tax compliance in Slovenia. We discuss possible policy responses to our findings. Since norms and trust in authorities are non-economic factors of tax-compliance the indirect control approach, which focuses on the development of a high trust and high commitment culture of taxpayers has been examined more thoroughly. Due to the generally valid recognition that both direct and indirect control measures need to be used together to tackle the shadow economy, we briefly introduce the responsive regulation approach and the slippery slope framework.

Tax Compliance Challenge through Taxpayers’ Typology

“…The economic determinants of tax compliance (tax audits and tax rates) were measured with 6 items, as proposed by Tenidou et al (2015) and van Dijke et al (2019). Psychological determinants of tax compliance (tax morale, social norms, tax system complexity and fairness perceptions) were assessed with 19 items as suggested by Onu et al (2018), Kirchler et al (2006), and Hauptman et al (2015). The two aforementioned scales were slightly modified due to the specificities of the Croatian tax system.…”

Tax Compliance Determinants: Empirical Evidence From Croatia

“…In order to identify the economic and psychological factors that determine tax compliance, primary research was conducted using the survey method. The measuring instrument in the empirical research was a structured questionnaire in the Croatian language, designed on the basis of previously used and tested measuring instruments and scales from the relevant literature (Kirchler et al, 2006;Hauptman et al, 2015;Tenidou et al, 2015;Onu et al, 2019;van Dijke et al, 2019). For the research, this was pretested and piloted, to check the content validity and reliability of the questionnaire before conducting the main survey.…”

The Direct and Moderating Effect of Sociodemographic Variables on Tax Compliance Behaviour

“…To validate the data, a structural questionnaire in Croatian language was piloted and pretested. Although it was designed according to measuring instruments and scales from the relevant literature (Kirchler, Niemirowski, and Wearing 2006;Hauptman, Gürarda, and Korez-Vide 2015;Tenidou et al 2015;Onu, Oats, and Kirchler 2019; van Dijke, Gobena, and Verboon 2019), certain specificities of the Croatian tax system indicated the need for a moderate adjustment.…”

“…For all those participants who answered no, survey ended. As in prior studies, the respondents were asked to indicate their answers on a five-point Likert scale, from "I completely disagree" (1) to "I completely agree" (5) (Hauptman, Gürarda, and Korez-Vide 2015;Tenidou et al 2015). To collect data regarding sociodemographic characteristics (gender, education level, employment status, monthly income, seniority), multiple-choice questions were employed.…”