Testing the Slippery Slope Framework in the Scope of Fiscal Sociology: A Study on the Classification of Income Levels

Erul, Rana Dayioğlu

doi:10.25295/fsecon.2020.01.004

Cited by 2 publications

(6 citation statements)

References 9 publications

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“…In addition, previous studies have shown that the power of the authorities has a positive and important relationship with compliance [1,31,32,34,[36][37][38][39][42][43][44][45]. The proxy for the power of authorities is an indicator of the rule of law, showing the degree to which taxpayers comply with the rules, with a higher control by law corresponding to higher enforcement of tax policy.…”

Section: Discussion Of the Resultsmentioning

confidence: 99%

“…The quality of the education system is a measure of how well the education system meets the needs of a competitive economy. The impact of education on tax compliance has been analyzed in the literature, and positive relationships have been found [32,38,45]. An increased level of education among taxpayers might contribute to a better understanding of various socioeconomic phenomena, laws, and regulations.…”

Section: Discussion Of the Resultsmentioning

confidence: 99%

“…The power of the tax authorities is related to tax audit activities and the punishment of tax evaders. The power variable is an important determinant of tax compliance [7,32], but coercive power is negatively related to implicit trust and tax compliance [33]. The power of the authority directly influences the compliance behavior [34].…”

Section: Power Of the Tax Authoritiesmentioning

confidence: 99%

“…Enforced tax compliance is related to the perception of audit probability and sanction severity [35]. The audit probability and rule of law have positive effects on tax compliance [32].…”

Section: Power Of the Tax Authoritiesmentioning

confidence: 99%

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Analysis of the Tax Compliance in the EU: VECM and SEM

2021

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Tax compliance is an important indicator for the proper functioning of the tax authority, influencing the budget revenue level. In this study, a Vector Error Correction Model (VECM) analysis was developed to identify the long-term relationships between the compliance in individual income taxation (taxpayer’s behavior), public trust in politicians (trust in authorities), and rule of law (power of the authorities), using unbalanced panel data for the European Union (EU28) during the 2007–2017 period. The results underline the causality of the long-run relationships between the variables. The results of the VECM analysis underline the need for various support measures for voluntary tax compliance, with the trust variable having an important impact on tax compliance. In addition, a Structural Equation Modeling (SEM) analysis was employed using an improved data set with variables such as the compliance in corporation taxation (taxpayer’s behavior), wastefulness of government spending, and quality of the education system. The results of the SEM analysis underline the positive and significant influences of the variables on tax compliance.

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Section: Discussion Of the Resultsmentioning

confidence: 99%

Section: Discussion Of the Resultsmentioning

confidence: 99%

Section: Power Of the Tax Authoritiesmentioning

confidence: 99%

“…Enforced tax compliance is related to the perception of audit probability and sanction severity [35]. The audit probability and rule of law have positive effects on tax compliance [32].…”

Section: Power Of the Tax Authoritiesmentioning

confidence: 99%

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Analysis of the Tax Compliance in the EU: VECM and SEM

2021

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“…Regarding the power variable, the results from the literature show an influence on tax compliance (Erul, 2020b;Kasper et al, 2015;Kogler, Muehlbacher, & Kirchler, 2015). Audits and the rule of law (power variables) positively influence tax compliance (Erul, 2020a).…”

Section: Literature Reviewmentioning

confidence: 99%

Power, trust and tax compliance: Evidence from clusters of countries

Surugiu

Mazilescu

Surugiu

2023

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Tax compliance is important for public revenues, programs, and services that can improve people's quality of life and the provision of public goods. The analysis focuses on the long-run relationships between tax compliance (taxpayers' behavior), public trust in politicians (trust in authorities), and the rule of law (power of the authorities). The analysis uses unbalanced panel data for 68 countries from 2007–2017 and on clusters of countries. A positive shock in trust positively affects tax compliance in the short term in the case of East Europe, Africa and the Middle East, and Confucian Asia clusters. A positive shock in power positively affects tax compliance in the case of the Anglo and Africa and Middle East clusters. Trust and power impact tax compliance and differ depending on the analyzed groups. A collaborative relationship between the authorities and the taxpayer might be obtained by providing well-functioning institutions, being open and transparent about their work, and instilling confidence. These aspects are essential in any economy because the results may be related to increased compliance.

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Testing the Slippery Slope Framework in the Scope of Fiscal Sociology: A Study on the Classification of Income Levels

Cited by 2 publications

References 9 publications

Analysis of the Tax Compliance in the EU: VECM and SEM

Analysis of the Tax Compliance in the EU: VECM and SEM

Power, trust and tax compliance: Evidence from clusters of countries

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