Justice perceptions and cooperation of citizens with the tax-authorities: The group engagement model of cooperation

Abstract

One of the mandatory responsibilities of each citizen is paying taxes. Even though it is a legal requirement to do it, citizens have the possibility to adjust their payments and cheat on it. Thus, the paying of taxes can be seen as cooperative act between the state and its citizens. Based on the group engagement model of cooperation, this study (N=474) demonstrates the interplay of perceived justice, national identification, motivational postures and tax compliance. Extending the justice dimensions of the original group engagement model by retributive justice, a positive relationship of all three forms of perceived justice (i.e. procedural justice, resource judgements, and justice of punishment) with national identification was achieved. Furthermore, while national identification was positively associated with deference, its negative association with defiance could not be shown. Tax compliance was high in case of strong attitudes of deference and weak attitudes of defiance. Results indicate partial mediation of justice judgments and deference through national identification. Judging justice is not an easy task and thus, citizens should be taught about the rationale behind tax law. Understanding the reasons for the law facilitates making up one’s mind regarding the fairness of tax distribution, tax procedures and retribution for cheating on taxes that influences tax compliance in the long run.