Trust and power as predictors to tax compliance: Global evidence

Mas’ud, Abdulsalam; Manaf, Nor Aziah Abdul; Saad, Natrah

doi:10.14254/2071-789x.2019/12-2/11

Cited by 25 publications

(25 citation statements)

References 26 publications

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“…The highest taxes and mandatory contributions apply to small businesses. In general, compared to the tax systems in the United States and Great Britain, the tax system in France is more stringent in relation to corporations and the personal incomes of citizens [54,55]. France also has its differences from Russia.…”

Section: Discussionmentioning

confidence: 99%

Tax System of the Russian Federation: Current State and Steps towards Financial Sustainability

et al. 2019

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Achieving financial sustainability is the most important strategic task of the state in a turbulent global economic environment. The purpose of this study was to identify the patterns of development and peculiarities of the tax situation in Russia. The authors determined the most effective approaches for the formation of the tax system that would ensure the financial sustainability of the state in conditions of economic transition. This study examined the existing features and patterns of the formation of the Russian tax system. The ways and instruments to achieve financial stability were considered. As an example, it was decided to take into account the international practices of the most successful states in terms of tax (according to the Doing Business methodology)—namely, the USA, Ireland, France, Greece, Luxembourg, the Netherlands, Germany, Switzerland, the UK, Sweden and Norway. A list of conditions is proposed, the implementation of which might ensure the transformation of the Russian financial system in terms of sustainability. This article also demonstrates changes in the economic infrastructure of the Russian Federation and indicates possible scenarios for the development of the tax system. This study determines that the tax system is largely shaped by the information environment. Therefore, digitalization processes can serve as a catalyst for the achievement of financial sustainability by the state. The choice of tools for the internal reform of public finances is situational. However, strategic transformation (in terms of macro-level sustainability) can be achieved by performing a number of universal steps. The implementation of the latter creates not only a positive effect from the introduction of new approaches, but primarily minimizes the impact of existing negative phenomena and trends. The tax system of the Russian Federation can be optimized by consolidating sustainable development indicators in the legal acts. The latter is an important step towards achieving financial sustainability.

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Section: Discussionmentioning

confidence: 99%

Tax System of the Russian Federation: Current State and Steps towards Financial Sustainability

et al. 2019

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“…The essential point, in this case, is to select one of a number of possible solutions that best explains the observed data (perfect model-data fit) given a certain estimation criterion (maximum likelihood) (Kelloway, 1998;Lei & Wu, 2007). In the opposite extreme (case), when the degree of freedom is negative, the conceptual model is said to be under-identified (Maruyama, 1998). This fact illustrates the inability to determine one unique or a number of possible solutions values for the model coefficients due to the insufficiency of empirical information provided.…”

Section: Model Identificationmentioning

confidence: 99%

Trust crisis in the financial sector and macroeconomic stability: a structural equation modelling approach

Brychko

Bilan

Lyeonov

et al. 2020

Economic Research-Ekonomska Istraživanja

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Although the growing body of literature that recognises a destabilising role of the trust crisis in the macroeconomic stability, the understanding of mediational pathways remains limited. The current paper fills the gap by contributing to the existing literature by examining closely the mediating effect of the trust crisis in the financial sector on the indicators of macroeconomic stability due to the anticipated impact of the financial intermediation development and the monetary policy transmission mechanism, as well as their combinatorial impact. A method of structural equation modelling was used to analyse the input data. It has been empirically confirmed that exacerbation of the trust crisis in the financial sector without the use of regulatory measures is detrimental to macroeconomic stability. The results of the mediation analysis show that transmission channels of the monetary policy mechanism and developed financial sector mitigate the harmful effects of deepening the trust crisis in the financial sector and lead to an increase in macroeconomic stability indicators. From a practical perspective, the findings revealed that interest, credit, and currency channels of the monetary policy transmission mechanism could be used to cope with the erosion of the trust crisis in the financial sector to macroeconomic stability.

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“…Structural equation modeling offers an effective way of understanding abstract concepts. This leads to SEM dissemination in social studies (Atef et al, 2017, Lekovic & Bobera, 2018, Alyoubi et al, 2019, Alsua et al, 2019, Muneeb et al, 2019, Akhondzadeh, 2019, Sadiq et al, 2020, including trust (Al Halbusi et al, 2018, Mas'ud et al, 2019. STATISTICA 13.3 was selected for confirmatory modeling and PATH analysis, as well as testing for its reliability and validity.…”

Section: Theoretical Model and Hypothesis Developmentmentioning

confidence: 99%