Tax compliance represents a social dilemma in which the short-term self-interest to minimize tax payments is at odds with collective long-term interest provide sufficient funds for public goods. According Slippery Slope Framework, can be solved and guaranteed by power of authorities trust authorities. The framework, however, remains silent on dynamics between trust. aim present theoretical paper conceptualize differentiating coercive legitimate reason-based implicit Insights into this...

Although it seems reasonable to assume that activating patriotism might motivate citizens cooperate with the state in reaching societal goals, empirical evidence supporting this contention is based mostly on correlational rather than experimental studies. In addition, little known whether can be manipulated without simultaneously triggering nationalism and psychological processes which determine patriotism-cooperation relation. This current article reports results of one survey three...

We conduct a field experiment on tax compliance, focusing newly founded firms. As novelty the effect of authorities’ supervision timely payments is examined. Interestingly, results show no positive overall close compliance.

Interpersonal trust is an important source of social and economic development. Over decades, researchers debated the question whether how public institutions influence interpersonal trust, making this relationship a much-discussed issue for scientific debate. However, experimental behavioral data insights on underlying psychological processes are rare often inconsistent. The present set studies tests model which proposes that institutional indirectly affects among unrelated strangers by...

Both coercion, such as strict auditing and the use of fines, legitimate procedures, assistance by tax authorities, are often discussed means enhancing compliance. However, psychological mechanisms that determine effectiveness each strategy not clear. Although highly relevant, there is rare empirical literature examining effects both strategies applied in combination. It assumed coercion decreases implicit trust leading to perception a hostile antagonistic climate enforced Conversely, it...

The execution of coercive and legitimate power by an authority assures cooperation prohibits free-riding. While can be comprised severe punishment strict monitoring, covers expert informative procedures. perception these powers wielded authorities stimulates specific cognitions: trust, relational climates, motives. With four experiments, the single combined impact on processes intended n1 = 120, n2 130, n3 368 n4 102 student participants is investigated within two exemplary contexts (tax...

Research on tax behavior has recognized the necessity of changing authorities’ approach from enforcement to service orientation. However, empirical investigations impact perceived orientation compliance are scarce. The present study draws conclusions survey data representative samples 807 Dutch private taxpayers and 1377 entrepreneurs. Perceived was found strongly related compliance. Furthermore, link between is mediated by trustworthiness authorities. We confident that who perceive a...

Following the classic economic model of tax evasion, taxpayers base their decisions on determinants, like fine rate and audit probability. Empirical findings relationship between key determinants evasion are inconsistent suggest that may rather rely beliefs about authority's power. Descriptions power affect taxpayers' as such evasion. Experiment 1 investigates impact fines regarding Experiments 2-4 conducted to examine effect varying descriptions a participants' respective It is investigated...

Tax authorities utilize a wide range of instruments to motivate honest taxpaying ranging from strict audits fair procedures or personalized support, differing country country. However, little is known about how these different and taxpayers' trust influence the generation interaction climates between tax taxpayers, motivations comply, particularly, compliance. The present research examines extended slippery slope framework (eSSF), which distinguishes authorities' into qualities power...

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Cooperation in social systems such as tax honesty is of central importance our modern societies. However, we know little about cognitive and neural processes driving decisions to evade or pay taxes. This study focuses on the impact perceived authority examines mental chronometry mirrored ERP data allowing a deeper understanding why humans cooperate systems. We experimentally manipulated coercive legitimate studied its cooperation underlying (experiment 1, 2) neuronal processes. Experiment 1...

A confidence-based climate between public administrations and citizens is essential. This paper argues provides empirical evidence that depending on the perceived interaction history, different policies are needed to build versus maintain confidence. Applying extended Slippery Slope Framework of tax compliance, an online a laboratory experiment were conducted explore whether authorities' coercive legitimate power have effects they situated in antagonism-based or climate. Results showed...

The present research addresses tools that could help reduce littering in society. Four interventions were tested which, based on different processes, should littering: monetary information, the depicted injunctive norm, watching eyes and a nature picture. To test these interventions, randomized controlled trial (RCT) involving 440 community building's waste disposal areas (N = 71,155) was conducted Vienna. Littering assessed before intervention, 24–48 h after, again seven weeks after...

In 2009, Indonesia introduced a specialised tax office focused on High Wealth Individuals (HWIs), increasing the audit probability and monitoring of around 1200 wealthy taxpayers in Jakarta. Leveraging quasi-natural experiment analysing 141,097 de-identified individual return records between 2006 2012, we developed set counterfactuals to evaluate post- pre-treatment declarations monitored relative their synthetic control groups. Our results indicate that although post-treatment declaration...

The relationship between tax authorities and taxpayers is essential for compliance. aim of the present paper was to explore systematically determinants this related compliance behaviors based on extended slippery slope framework. We used in-depth qualitative interviews with 33 self-employed 30 auditors. Interviewees described along framework concepts power trust. However, also novel sub-categories (e.g., setting deadlines) trust personal assistance) were mentioned. Furthermore,...

Misconduct in organizations (such as fraud, stealing, deception, harming others) is not merely a matter of some "bad apples", but also related to the organizational context ("bad barrels") that can facilitate either ethical or unethical behaviors. Given financial crisis and recurring corporate ethics scandals, policymakers, regulators are interested how change culture enhance behavior prevent further disasters. For this purpose, need better understand which strategies factors environment...

This study investigates which policy measures are able to motivate citizens in rural and semi-rural areas of Lower Austria use active transport modes for everyday trips. A representative sample was asked evaluate six walking- eight cycling-oriented measures. We find that the revitalization village/town centers infrastructural considered most motivating, soft (such as information provision) least motivating. The respondents' answers found depend on their current intended mobility behavior,...