Trust in Authority and Attitudes Towards Taxpaying on Tax Compliance Intention －Tax Knowledge and the Slippery Slope Framework－
Asian Tax Journal Vol. 19 No. 2 (2018), pp. 139-164
Abstract
The Slipper Slope Framework (SSF) posits that economic and psychological factors that determine taxpayer compliance can be reduced into two dimensions：perceived power of authority (Power) and perceived trust in authority (Trust). According to the framework, Power, Trust and their interaction are key factors to understand taxpayer behavior and to devise tax enforcement policies. Hence, the study aims at investigating the plausibility of SSF in the context of Korean taxation environment in order to derive practical implications for Korean tax authority. Notably, the study not only examines empirical validity of SSF but also seeks to find a better way to adopt the tax compliance framework in association with the importance of tax education and information provisions with regard to fiscal policy. The experiment conducted via online survey with 107 college students shows that tax education has a positive influence on their perceptions regarding Power and Trust. Moreover, the interaction of Power and Trust, attitudes toward taxpaying, and risk preference have been found to affect tax compliance intention in a hypothetical income tax evasion scenario. The result implies that SSF can come into play in establishing and administering tax enforcement strategies that foster taxpayer compliance. In particular, tax education and information campaign should be redesigned to shape appropriate tax knowledge in regard to perceived power of authority and trust in authority.
Keywords
- tax compliance
- power of authority
- trust in authority
- Slippery slope framework
- tax knowledge