Trust In Tax Authorities Research Articles

Model pengukuran religiusitas, budaya lingkungan dan kepercayaan pada otoritas pajak terhadap kepatuhan wajib pajak UMKM

This research is very important to do because there is a very low decline in the number of Annual Tax Return reporting from the number of registered MSMEs in 2022-2023 caused by several factors such as religiosity, environmental culture and trust in tax authorities. The purpose of this study is to evaluate the effects of religiosity, environmental culture and trust in tax authorities. The approach used in this research is quantitative. The data needed for this research is primary data, obtained from google forms and distributed to MSMEs in Karawang Regency. The population in the study was 17,760 MSMEs recorded at KPP Pratama Karawang in 2023. The sample was taken utilizing purposive sampling so that 100 taxpayers were obtained with predetermined criteria according to the needs of the researcher. The test tool in the study used SmartPLS 3.0. The results of this study show that first, religiosity has no effect on MSME taxpayer compliance. Second, environmental culture affects MSME taxpayer compliance. Third, trust in tax authorities affects MSME taxpayer compliance.

Exploring the Nexus: Tax Compliance and Sustainable Development in Namibia

Tax revenue collection serves as the bedrock for states to avail infrastructure, essential national needs and development, encompassing critical sectors such as education, healthcare, and social welfare. This study explored and answered a question on which factors influence domestic taxpayers’ compliance in Namibia. This study tested the nine factors unpacked by Trifan et al., (2023) against 113 domestic taxpayers’ messages sent between June 2022 and December 2023 regarding tax concerns. This study was underpinned by established tax compliance explanations, including, political accountability social norms, deterrence factors, and fiscal exchange. A qualitative approach was adopted, by collecting messages from taxpayers through the Namibia Revenue Agency ‘s (NamRA) Facebook page and published Short Message Services (SMS) by the Namibian News Paper. The data were quantified to provide a better understanding as to what extent categorized taxpayers’ messages contributed to tax compliance in Namibia. The results revealed that five factors (trust in tax authority, perceived fairness, tax legislation and procedures simplicity, personal financial and economic factors, and malfunctioning of integrated tax administration (ITAS), were found to have a likelihood influence on tax complaisance in Namibia.

Проблемы формирования налоговой культуры в России

This article addresses the issues surrounding the formation of the domestic tax culture in Russia. These issues are largely attributed to the state of “cultural tax shock” experienced by the Russian population in the post-perestroika period. However, even in Soviet times and earlier, a characteristic feature of Russian mentality known as “tax nihilism” was observed. The current state of tax culture can be characterized in two aspects: by examining the level of tax literacy among the population and taxpayers’ trust in tax authorities. Particular attention should be paid to youth in the formation of tax culture due to their detachment from the consequences of the societal transformation processes at the end of the last century. The article analyzes ways to increase the level of tax literacy among Russian schoolchildren. However, the problem of tax literacy among Russian students persists, coupled with the increasing prevalence of secondary employment among them. Measures to enhance public trust in tax authorities are also considered. The article emphasizes the role of developing the theoretical basis of tax culture, which requires attention not only to developments in traditional fields of law and economics but also in social research on fiscal sociology and the philosophy of taxation. In conclusion, the formation of tax culture in Russia faces multifaceted challenges stemming from historical legacies, societal perceptions, and educational gaps. By addressing these issues holistically, Russia can progress towards cultivating a more informed and cooperative tax culture among its populace.

Tax authorities’ access to information covered by banking secrecy with regard to the right to privacy

The institution of banking secrecy is regulated in legislation that is at the interface between the regulations of public and private law. This type of solution may lead to a conflict of interests ‒ private and public ones. The issue of tax authorities’ access to information covered by banking secrecy requires consideration in relation with the provisions of several legal acts. The procedure for obtaining information covered by bank secrecy provided for in Articles 182–185 of Tax Ordinance as well as the duty to take into account the principle of special trust between a client and a financial institution, are directives referring to the principle of conducting proceedings in a way that inspires trust in tax authorities, while the practice of making information available to tax authorities under Article 49(2) of the Act on the National Revenue Administration in fact deprives the parties of procedural safeguards. In the case of competitiveness of protected goods, it is necessary for the legislator to regulate the disputed issues in compliance with the constitutional requirements of standardisation and a clear and legible balance between the interests in conflict. It should therefore be concluded that when introducing new legislation on the matter of interference in the right to privacy, the legislator is obliged to balance the competing valuses with particular care. The balance between the taxpayer's privacy and the public interest does not seem to have been preserved in the scope of the subject matterin question.

TRUST IN TAX AUTHORITIES, TAX FAIRNESS AND TAX MORALE

Existing literature stresses the importance of socio-economic factors when aiming to increase the willingness of taxpayers to pay their tax obligations. There have been insufficient studies on socio-psychological factors in tax morale research. This study focuses on trust in tax authorities and tax fairness factors that may explain the reasons why people pay taxes. The purpose of this conceptual review is to analyze and synthesize the theoretical and conceptual frameworks of trust in tax authorities and tax fairness in the tax morale context. Trust in tax authorities refers to the level of confidence taxpayers put in tax authorities based on how well they perform their duties. Tax fairness refers to taxpayers who perceive paying taxes as a fair process in terms of the treatments and benefits they receive for the taxes paid. Tax morale is defined as the intrinsic motivation of taxpayers to pay their fair share of taxes. Using the Social Psychology of Taxation (SPT) and Ibnu Khaldun's Theory of Taxation (IKTK), the interrelationships between trust in tax authorities, tax fairness, and tax morale are critically evaluated and analyzed. The review of relevant tax morale literature is conducted to identify any research gaps, inconsistencies, or ambiguities. It is interesting to note that there were mixed findings in terms of the effect of tax fairness on tax morale. Some studies have demonstrated positive relationships, while others have found negative ones. It has been discovered that taxpayers’ trust in tax administrations would increase if tax authorities treated taxpayers with consideration and respect, applied clear and fair procedures to all taxpayers, and assisted them in meeting their tax obligations. A psychological contract aptly captures the interaction between tax authorities and taxpayers, which will manifest in a willingness to pay taxes. Further investigation needs to be carried out in order to statistically validate the direct and indirect relationships between trust in tax authorities, tax fairness, and tax morale.

The slippery slope framework: A comprehensive evaluation of factors affecting trust and power

Many empirical studies have been conducted to test the assumptions of the slippery slope framework (SSF). However, although the SSF theory has introduced several tax compliance factors that are believed to have associations with trust in tax authorities and power of tax authorities, most studies tend to include only the two main domains of trust and power in the analysis. None of these studies comprehensively investigates the factors. Therefore, this study is dedicated to fully elaborating on these factors and their correlations with the two main domains of trust and power separately and simultaneously. The results show that most factors are proven to significantly influence trust and power. Tax penalties, norms, distributive fairness and retributive fairness significantly and positively influence trust, while audit probabilities, tax penalties, attitudes, norms and retributive fairness have significant and positive correlations with power. The results also confirm the main SSF assumptions that trust leads to voluntary compliance, while voluntary compliance positively affects overall tax compliance. However, this study fails to demonstrate the relationship of power with enforced compliance, while enforced compliance is found to negatively affect overall tax compliance.

Tax administration, trust in tax authorities, and personal income tax compliance: Evidence from Nigeria

Developing countries are characterized by a low level of tax compliance arising from weaknesses in tax administration and trust deficits. This poses a critical challenge toward the attainment of developmental goals. This paper aims to examine the moderating role of trust in tax authorities for the relationship between tax administration and personal income tax compliance in Nigeria. The study used a survey design to obtain data through a structured questionnaire administered to randomly selected individual taxpayers from Nigeria; 365 responses were collected. The OLS results revealed that tax administration significantly influences personal income tax compliance (β = 0.301, t = 4.068, and p-value = 0.000). Trust in tax authorities significantly influences personal income tax compliance (β = 0.183, t-value = 3.650, and p-value = 0.000). Furthermore, the result showed that trust in tax authorities positively moderates the relationship between tax administration and personal income tax compliance (β = 0.323, t = 4.098, and p-value = 0.000). This study concludes that tax administration significantly affects personal income tax compliance, and trust in tax authorities moderates this relationship in Nigeria.

Review of Personal Taxpayer's Compliance Level with Slippery Slope Framework Approach

This research used a combined approach between economic and behavioral approaches to analyze tax compliance, known as Slippery Slope Framework. This framework stated that there are two important factors that affect tax compliance in paying taxes and carrying out their tax obligations, those two factors are taxpayer trust on tax authority and the power of tax authority. The “slippery slope” framework assumes that economic determinants of tax behavior represent authorities’ power, which leads to enforced tax compliance. On the other hand, psychological determinants lead to trust in authorities and also to voluntary tax compliance. The purpose of this research is to analyze the level of compliance of individual taxpayers when it is associated with factors that affect the level of tax compliance based on the slippery slope framework approach. The data set of the research was obtained from the survey to individual taxpayers using accidental sampling technique. The results of this research indicate that taxpayers have very good trust in the tax authorities and most taxpayers agree with the statement that trust in tax authorities affects taxpayer compliance. Based on that trust, taxpayers carry out their tax obligation voluntarily. Meanwhile, the results on the power of the tax authority show that the power of the tax authority has a neutral influence on taxpayer compliance. Based on these results, it can be concluded that the taxpayer trust factor is a factor that greatly influences taxpayer compliance in carrying out their tax obligations.

The Role of Taxpayer Trust and Awareness on Voluntary Compliance: An Experimental Study

This study is a development of previous research which found that fair treatment from the tax authorities were not able to encourage taxpayer compliance. It is suspected that this is caused by another personality element, namely taxpayer awareness. Therefore, this study examines the effect of taxpayer trust and awareness on taxpayer voluntary compliance using the experimental method. The participants of the experiment were 106 students of Undergraduate Accounting Program, Ganesha University of Education. The results of this study found that trust in tax authorities is a very important factor in shaping compliance behavior, especially for taxpayers who have low tax awareness. Meanwhile, taxpayer awareness has an important role in shaping compliance behavior when the condition of trust in tax authorities is low. The results of this study are expected to contribute theoretically and practically, to emphasize the importance of forming taxpayer awareness and trust in tax authorities.

The effect of tax incentives, trust in tax authorities, tax morale, and tax socialization on individual taxpayer compliance

This study aims to find out the problems that occur such as micro, small, and medium enterprises (MSME) taxation, trust in the tax authorities, tax morale, and tax socialization on MSME individual taxpayer compliance in the Bandung Regency area since the contribution of tax revenue from the MSME sector is still relatively small. The research method used is quantitative descriptive. The data used in this study were in the form of a questionnaire distributed to individual MSME taxpayers, based on the Slovin formula, to as many as 98 respondents. Data analysis used the partial least square (PLS) analysis technique through SmartPLS software. The results showed that MSME tax incentives had a positive and insignificant effect on MSME individual taxpayer compliance, trust in tax authorities, and tax morale had a positive effect on MSME personal tax compliance, and tax socialization had a positive and insignificant effect on MSME taxpayer compliance. With the results of hypothesis testing, it can be concluded that in the MSME area, Bandung Regency requires tax socialization, especially taxes for taxpayer compliance.

Kepatuhan Wajib Pajak Pada Masa Pandemi Covid 19: Ditinjau Dari Slippery Slope Framework

This study aims to find empirical evidence of the influence of Slippery Slope Framework that is measured by the trust in tax authorities and the influence of the power of tax authorities on taxpayer compliance during the covid-19 pandemic. The data were obtained from corporate taxpayers registered with Tax Service Office (KPP) Pratama Batu in November – December 2021. The sampling was determined by using purposive sampling technique and the research instrument used questionnaire technique. The data analysis method used is PLS-SEM with 47 corporate taxpayers as samples. The results show that the compliance of corporate taxpayers registered with KPP Batu during the Covid 19 pandemic was quite good, while the results of hypothesis testing is that the power of the tax authorities had a significant positive effect on taxpayer compliance, while trust in the tax authorities had no effect on taxpayer compliance.

Pengaruh pengetahuan dan digitalisasi perpajakan terhadap voluntary tax compliance di mediasi kepercayaan pada industri kecil menengah Jawa Timur

The purpose of this research is to provide empirical evidence regarding: (1) the effect of tax knowledge on voluntary tax compliance. (2) the effect of trust in tax authorities mediating tax knowledge and voluntary tax compliance (3) The effect of tax digitalization on voluntary tax compliance (4) the influence of trust mediating tax digitalization on voluntary tax compliance. In this study, data was collected by distributing questionnaires to obtain 264 samples which were then processed using Smart PLS 3.0 software. In this study, the data analysis technique used was SEM-PLS. The results of this study indicate that knowledge of taxation has a positive effect on voluntary tax compliance, knowledge has a positive effect on trust, and trust has a positive effect on mediating knowledge and voluntary tax compliance. This study also shows the positive effect of tax digitization on voluntary tax compliance and the positive effect of Tax Digitalization on trust, and trust also has a positive influence in mediating tax digitalization on voluntary tax compliance.

The Role Of Trust In The Voluntary Compliance Of MSME Taxpayers

This study aims to determine the effect of tax justice and the quality of tax service services on the voluntary compliance of MSME taxpayers in Pekalongan City with trust in the tax authority as an intervening variable. This research is a survey research with a quantitative approach. The data used in this study are primary data obtained from distributing questionnaires to 100 MSMEs registered in the Pekalongan Tax Office. The sample was selected by the purposive sampling technique. The collected data is processed and analyzed using the SmartPLS 3.0 application. The results of this study indicate that (1) tax justice has no effect on the voluntary compliance of MSME taxpayers, (2) the quality of tax service services has a positive effect on the voluntary compliance of MSME taxpayers, (3) trust in tax authorities has a positive effect on the voluntary compliance of MSME taxpayers, (4) trust in tax authorities can mediate the effect of tax justice on the voluntary compliance of MSME taxpayers, (5) trust in tax authorities can mediate the effect of tax service quality on the voluntary compliance of MSME taxpayers.

Power, Trust and Transparency as Determinant Factors of Tax Compliance: A Systematic Review

This systematic review emphasizes the importance of expanding and deepening the theoretical framework of research on individual taxpayer compliance, particularly through integrated models. The main objective of this article is to systematically review the literature on tax compliance based on three determinants: coercive power, trust in tax authorities and transparency; and provide a direction for future research. There are three review questions in this paper, namely: (1) What is the present situation of the literature on the connection between coercive power and tax compliance; (2) What is the present situation of the literature on the connection between trust in tax authorities and tax compliance; (3) What is the present situation of the literature on the connection between “relationship transparency” and tax compliance. A systematic review of the literature was used to perform this review, considering 66 studies published in several suggested databases. The results are a call for a more sophisticated understanding of not only how suggested factors (Coercive Power; Trust; Transparency) affect tax compliance, but also how they interact and change each other and then, influence tax compliance. This review implies that enhancing tax service, transparency, and government trust is more successful and relatively easier to proceed than encouraging positive behaviour among taxpayers. This review is the first to systematically analyse the literature on tax compliance based on three determinants (coercive power, trust and transparency), as found, no synthesis studies have comprehensively covered the issue. This results in unique, motivating, and relevant discoveries that may be used to direct future studies and serve as a tool for academics, practitioners, and policymakers. Furthermore, this study would aid governments and tax authorities to understand the motives and perceptions of taxpayers into taxes.

Tax Morale: Direct and Indirect Paths between Trust Factors: Empirical Evidence from Greece

A plethora of evidence can be found in the literature supporting the view that citizens’ trust in the state plays a decisive role in their overall tax compliance. Nevertheless, in Greece, where the consequences of a ten years long economic crisis still exist, the phenomenon of tax evasion is still dealt with traditional enforcement methods like penalties, regular audits, and tax policy. A new conceptual model is proposed and empirically tested using data from 1,014 Greek citizens from fifty areas of Greece. It attempts to examine the combined effect of ten trust-related factors, which are grouped into four dimensions on tax morale (trust in governance quality, trust in principles and institutions, trust in fellow citizens and trust in personal perceptions). The results show that Greek citizens’ trust in tax reciprocity is the factor that mainly affects tax morale, with citizens’ trust in tax authorities and in the institution of democracy closely following.

THE EFFECT OF ATTITUDE TOWARDS E-TAX SYSTEMS, ADOPTION OF E-TAX SYSTEMS, ISOMORPHIC FORCES, AND TRUST IN TAX AUTHORITY TO TAX COMPLIANCE (CASE STUDY ON SMES LISTED IN KPP PRATAMA MEDAN PETISAH)

This study aims to investigate whether attitude towards e-tax systems, trust in tax authority, and adoption of e-tax systems could influence voluntary tax compliance and whether adoption of e-tax systems and the isomorphic forces could increase enforced tax compliance. The sample was taken from 152 SMEs taxpayer registered in KPP Pratama Medan Petisah and processed using IBM SPSS Statistics 25, then it was analyzed by using multiple regression tests. The findings showed that attitude towards electronic tax system, trust in the tax authority, and adoption of electronic tax systems have a positive significant influence on voluntary tax compliance. The adoption of e-tax systems and isomorphic forces also has a positive significant influence on enforced tax compliance.

FACTORS AFFECTING THE SATISFACTION OF BUSINESSES USING ONLINE TAX PAYMENT SERVICES AT THE TAX DEPARTMENT OF HO CHI MINH CITY, VIETNAM

Customer satisfaction forms the foundation of any business success, as it leads to service reuse, brand loyalty and positive word of mouth. This study has been conducted as a survey. Convenient sampling method has been applied on a sample of 300 enterprises that have been using online tax payment services of the Tax Department of Ho Chi Minh City. The research model parameters include: (1) Information and system quality, (2) Time efficiency, (3) Confidentiality of information and transactions, (4) Support service / customer service, (5) Helpful awareness, (6) Trust in tax authorities. The results show that confidentiality of information and transactions has the strongest impact. Trust in tax authorities and Helpful awareness impact goes second. Next is time efficiency and support service/customer service. Finally, the Information and system quality is ranked the last one since it has the lowest beta coefficient.

Model Kepatuhan Wajib Pajak (Studi pada Wajib Pajak yang Melakukan Usaha di Kota Medan)

This study aims to produce a Taxpayer Compliance model (Study on Taxpayers Doing Business in Medan City. The research was conducted in Medan City. The population of this study is taxpayers who carry out business activities in Medan City, both individual taxpayers and businessmen. corporate tax. Because the number of taxpayers who carry out activities in Medan City is very large and the population is unknown, a sample selection was made and 97 taxpayers were obtained. The sample selection was taken by convenience sampling technique. The survey used a media questionnaire (questionnaire). The data analysis technique used was descriptive statistical analysis and SEM-PLS with Smart PLS software. The results showed that there was a significant positive effect of procedural justice on Taxpayer Compliance. There was a significant positive effect of norms. per sonal on Taxpayer Compliance. there is a significant positive effect of procedural justice on personal norms. Moderation of Trust in Tax Authorities is able to strengthen the effect of procedural justice on Taxpayer Compliance

Perceptions of trust, power and tax compliance motivations among large businesses and their tax auditors

This study investigates psychological determinants of tax compliance, particularly the predictions of the Slippery Slope Framework (SSF; Kirchler et al., 2008), among large businesses and their tax auditors. The SSF predicts that trust in tax authorities determines voluntary tax compliance and that the perceived power of tax authorities to detect and penalize tax evasion determines enforced tax compliance. While the predictions of the SSF have consistently been found in studies focusing on individual taxpayers, few studies have tested the SSF in the context of large businesses or focused on tax auditors and their perceptions of businesses’ tax compliance. Nevertheless, trust-based approaches to tax collection have gained popularity, with cooperative tax auditing programs directly targeting large businesses. Using questionnaire data from 366 representatives of large businesses operating in Austria and 208 Austrian tax auditors, I conduct structural equation models testing the applicability of the SSF among these groups. In the group of businesses, the predictions of the SSF appear to hold. However, significant associations between trust and voluntary compliance and power and enforced compliance are mainly driven by the female subsample. Among tax auditors, there is no significant association between trust and voluntary compliance when power is introduced as a control variable. Overall, results suggest limited applicability of the SSF in a large business context and a stark mismatch between businesses’ and tax auditors’ perceptions on tax compliance. More research is needed to investigate the difference in results between female and male business representatives and non-economic determinants of tax compliance in a large business context.

Corporate Taxpayer Compliance: Slippery Slope Framework and Planned Behavior Theory Approaches

The purpose of this study is to examine and analyze the influence of trust in tax authorities and the power of tax authorities as defined in the Slippery Slope framework to corporate taxpayer's intention to comply, then examine and analyze the effect of tax compliance intentions on corporate taxpayer compliance. This study took samples of companies included in category A corporate taxpayer in Timor Leste consisting of 53 respondents, using survey methods and primary data. The sampling technique uses the census method. The results of this study indicate that, first the trust in the tax authority and the power of the tax authority does not have a positive effect on the intention of tax compliance. Second, the intention of tax compliance has a positive effect on the behavior of tax compliance, both voluntary compliance and enforced compliance. Third, tax justice which consists of tax system fairness and procedural fairness, is not proven as a moderating variable that strengthens the relationship of trust to the tax authority and the power of the tax authority to the intention of tax compliance. This research is an additional empirical evidence that integrates aspects of social psychology and deterrence aspects in understanding tax compliance behavior in developing countries.