TAX COMPLIANCE: SLIPPERY SLOPE FRAMEWORK AND THEORY OF REASONED ACTION APPROACH
DOI:
https://doi.org/10.21776/ub.ijabs.2021.29.2.2Abstract
Purpose — This study aims to examine and analyze factors that influence tax compliance using socio-psychological elements.
Design/methodology/approach — Tax compliance in this study was examined using the slippery slope framework and theory of reasoned action approach. This study used the quantitative method. The data were harvested through a questionnaire survey and analyzed using structural equation modeling in SmartPLS version 2.0.
Findings — This study finds that tax compliance is influenced by legitimacy and coercive power of the authority, trust in the authority, and the taxpayer's intention.
Practical implications — Tax authorities should retain the power to maintain trust in the tax revenue that will improve tax compliance.
Originality/value — This study develops the slippery slope framework and refines it using intention as the variable, as described by the Theory of Reasoned Action.
Keywords — tax compliance; authority’s power; trust in authorities; intention.
Paper type — positive paradigm
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