Power and trust as determinants of voluntary versus enforced tax compliance: Empirical evidence for the slippery slope framework from Turkey

Benk, Serkan; Budak, Tamer

doi:10.5897/ajbm11.2157

Cited by 22 publications

(23 citation statements)

References 18 publications

(42 reference statements)

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“…The result of the statistical T value is 4.212 which is greater than 1.96 that means there is a significant affect between the two variables. This supports the hypothesis that high trust in tax authorities is in line with voluntary compliance that occurs due to the domination of the synergistic climate that occurs [9] Second hypothesis: Voluntary Compliance has a positive effect on Tax Compliance. The result of the statistical T value is 4.758 which is greater than 1.96 so there is a positive and significant effect.…”

Section: Based On the Results Of Table II Above Hypothesis Testing Csupporting

confidence: 77%

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Individual Tax Compliance: Trust versus Power

Widuri¹,

Jie²,

Christie³

2019

Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 19)

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The objective of this study regards with the issue that Indonesia is facing about tax revenue. Currently, Indonesia does not achieve the tax revenue target. Thus make the tax authority more focuses on tax payer compliance by encouraging voluntary compliance through increased trust to increase tax revenue. However, tax authority has many strategies that the tax authorities were forced to choose various strategies to achieve their goals. One of them is issuing powerbased regulations that have impact on enforced tax compliance. Thus encouraging researches to verify the relation between the role of power and trust with individual tax compliance and focused on tax avoidance that is mostly done by the individual tax payer. In this research, using the Structural Equation Model to know the correlation between trust and power towards voluntary tax compliance and enforced tax compliance on individual tax payers who does independent personal services with a revenue above and below 4.8 billion per year. This research is expecting to contribute to the tax authority to find out the factors that encourage tax payer compliance. The expectation of this study is to show that trust gives a positive effect on tax compliance by mediating with voluntary compliance. While Power does not affect tax compliance even though it has been mediated by forced compliance.

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Section: Based On the Results Of Table II Above Hypothesis Testing Csupporting

confidence: 77%

“…If the tax authority acts fairly towards all taxpayers, it will grow and increase the taxpayer's trust in the tax authorities. If the taxpayer has a high level of trust in the taxation system implemented by the government, the taxpayer will tend to carry out their tax obligations voluntarily and not avoid tax [9].…”

Section: Trustmentioning

confidence: 99%

Individual Tax Compliance: Trust versus Power

Widuri¹,

Jie²,

Christie³

2019

Proceedings of the International Conference on Tourism, Economics, Accounting, Management, and Social Science (TEAMS 19)

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“…Benk and Budak (2012) state that self-reports may tend to comply with tax law rather than reflect actual tax behaviour. However, Kirchler and Wahl (2010) argue that by using fictitious cases or scenarios for assessing tax evasion the problem of social desirability could be reduced.…”

Section: Methods and Instruments Used To Measure Trustmentioning

confidence: 99%

The determinants and measurement of trust in tax authorities as a factor influencing tax compliance behaviour

Bornman

2015

J. econ. financ. sci.

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To trust is to believe that another person will cooperate for your benefit and will not take advantage of you if an opportunity to do so arises. Trust is valued as a relational variable providing the base for voluntary cooperation. This article aims to determine, by reviewing studies on the effect of trust in tax authorities on tax compliance, the determinants, effect and measurement of trust in this context. Findings from a number of studies indicated that trust in tax authorities is positively related to tax compliance, and it was found that perceptions of fairness, treatment by authorities, norms and attitudes, and subjective tax knowledge are the main factors determining trust in tax authorities. However, many studies use very limited descriptors when measuring perceptions of trust in authorities, and it is suggested that a standardised survey instrument could be developed to measure such perceptions.

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“…The level of tax compliance in the tax environment can be in a series between antagonistic climate and synergic climate. In antagonistic climate the relationship between tax authorities and taxpayers is represented as police and robbers, while synergic climate such as service and clients (Kirchler et al, 2008;Benk and Budak, 2012). This idea leads to the idea that tax compliance can be explained by two dimensions: power of tax authority and trust in authority.…”

Section: Introductionmentioning

confidence: 99%

“…In such a situation the tax authority as a police officer tries to detect the naughty taxpayer, who is represented as a robber. On the other hand these naughty taxpayers try to escape from the supervision of the tax authority, and if possible avoid taxes (Benk and Budak, 2012). Thus in antagonistic climate, the taxpayer becomes obedient only with the law and the provisions of taxation even if taxpayers consider that the tax authority has high power (Benk and Budak, 2012;Suryanto and Thalassinos, 2017).…”

Section: Introductionmentioning

confidence: 99%

The Optimum Level of Tax Compliance Based on Power of Authority and Trust in an Antagonistic Climate

Prihandini¹

2018

ERSJ

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This study aims to determine the optimum level of tax compliance. The optimum level is used for evaluation of tax compliance at one time period. Power of auhtority dan trust in authority are applied to explain tax compliancel based on Sliperry slope framework. This research used tax report that presented in the financial statements. All data processed from 105 companies listed in the Indonesian capital market during 2007-2015. Power of authority is measured by probability audit and fines, while appeal to the tax court for trust in authority, and ratio tax burde to income before tax for tax compliance. The optimum point is performed by first differential function of Tax compliance on Power of Authority and Trust in Authority. The result tax compliance is below the optimum level, power of authority and trus in authority are above the optimum level. Increased tax compliance is conducted through inspection procedures effectively, the determination of fair fines, and the use of administrative systems based on technology that can be accessed by taxpayers. Tax authority should be able to change from antagonistic climate into synergetic climate.

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Power and trust as determinants of voluntary versus enforced tax compliance: Empirical evidence for the slippery slope framework from Turkey

Cited by 22 publications

References 18 publications

Individual Tax Compliance: Trust versus Power

Individual Tax Compliance: Trust versus Power

The determinants and measurement of trust in tax authorities as a factor influencing tax compliance behaviour

The Optimum Level of Tax Compliance Based on Power of Authority and Trust in an Antagonistic Climate

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