.png)
Email this article What Drives Enforced Compliance? Insights from the Extended Slippery Slope Model among Value Added Taxpayers
Abstract
Objectives: This study examines the interrelationships among coercive power, implicit trust, antagonistic climate, and enforced tax compliance within the theoretical framework of the Extended Slippery Slope Framework.
Methodology: Utilizing a quantitative research design, data were collected from 359 Value Added Taxpayers in East Java, Indonesia. The analysis focuses on how taxpayer perceptions of institutional authority influence their compliance behavior.
Finding: Empirical results reveal that coercive power significantly exacerbates the emergence of an antagonistic climate, whereas implicit trust exerts a mitigating effect. Furthermore, an antagonistic climate is positively associated with enforced compliance, indicating that taxpayer adherence in such contexts is driven more by perceived institutional pressure than by intrinsic moral obligation. Mediation analysis further substantiates the role of antagonistic climate as a significant intermediary in the relationships between coercive power and enforced compliance, as well as between implicit trust and enforced compliance.
Conclusion: These findings contribute to the growing body of behavioral tax literature by highlighting the psychological mechanisms that underpin compliance behavior. The results advocate for a dual-strategy approach in tax administration that integrates both enforcement mechanisms and trust-enhancing interventions to foster sustainable tax compliance over the long term.
Keywords
Full Text:
PDFReferences
Allingham, M. G., & Sandmo, A. (1972). Income tax evasion: A theoretical analysis. Journal of Public Economics, 1(3–4), 323–338.
Alm, J., & Torgler, B. (2011). Do Ethics Matter? Tax Compliance and Morality. Journal of Business Ethics, 101(4), 635–651. https://doi.org/10.1007/s10551-011-0761-9
Bornman, M. (2015). The determinants and measurement of trust in tax authorities as a factor influencing tax compliance behaviour. Journal of Economic and Financial Sciences, 8(3), 773–790.
Gangl, K., Hofmann, E. B., Pollai, M., & Kirchler, E. (2012). The Dynamics of Power and Trust in the ‘Slippery Slope Framework’ and its Impact on the Tax Climate. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2024946
Gangl, K., Hofmann, E., Hartl, B., & Berkics, M. (2020). The impact of powerful authorities and trustful taxpayers: Evidence for the extended slippery slope framework from Austria, Finland, and Hungary. Policy Studies, 41(1), 98–111. https://doi.org/10.1080/01442872.2019.1577375
Gangl, K., Hofmann, E., & Kirchler, E. (2015). Tax authorities’ interaction with taxpayers: A conception of compliance in social dilemmas by power and trust. New Ideas in Psychology, 37, 13–23. https://doi.org/10.1016/J.NEWIDEAPSYCH.2014.12.001
Gangl, K., Van Dijk, W. W., Van Dijk, E., & Hofmann, E. (2020). Building versus maintaining a perceived confidence-based tax climate: Experimental evidence. Journal of Economic Psychology, 81, 102310. https://doi.org/10.1016/j.joep.2020.102310
Gobena, L. B., & Van Dijke, M. (2016). Power, justice, and trust: A moderated mediation analysis of tax compliance among Ethiopian business owners. Journal of Economic Psychology, 52, 24–37. Scopus. https://doi.org/10.1016/j.joep.2015.11.004
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Hallsworth, M., List, J. A., Metcalfe, R. D., & Vlaev, I. (2017). The behavioralist as tax collector: Using natural field experiments to enhance tax compliance. Journal of Public Economics, 148, 14–31. https://doi.org/10.1016/j.jpubeco.2017.02.003
Hofmann, E., Gangl, K., Kirchler, E., & Stark, J. (2014). Enhancing Tax Compliance through Coercive and Legitimate Power of Tax Authorities by Concurrently Diminishing or Facilitating Trust in Tax Authorities. Law & Policy, 36, 290–313. https://doi.org/10.1111/lapo.12021
Hofmann, E., Hartl, B., Gangl, K., Hartner-Tiefenthaler, M., & Kirchler, E. (2017). Authorities’ Coercive and Legitimate Power: The Impact on Cognitions Underlying Cooperation. Frontiers in Psychology, 8. https://doi.org/10.3389/fpsyg.2017.00005
Kastlunger, B., Lozza, E., Kirchler, E., & Schabmann, A. (2013). Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy. Journal of Economic Psychology, 34, 36–45. https://doi.org/10.1016/j.joep.2012.11.007
Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210–225. https://doi.org/10.1016/j.joep.2007.05.004
Kogler, C., Batrancea, L., Nichita, A., Pantya, J., Belianin, A., & Kirchler, E. (2013). Trust and power as determinants of tax compliance: Testing the assumptions of the slippery slope framework in Austria, Hungary, Romania and Russia. Journal of Economic Psychology, 34, 169–180. https://doi.org/10.1016/j.joep.2012.09.010
Murphy, K. (2004). The role of trust in nurturing compliance: A study of accused tax avoiders. Law and Human Behavior, 28(2), 187–209.
Ramadhan, B., & Rodoni, A. (2021). Analisis Kepatuhan Wajib Pajak Orang Pribadi dengan Pendekatan Extended Slippery Slope Framework. Jurnal Syntax Transformation, 2(09). https://doi.org/10.46799/jst.v2i9.408
Rashid, S. F. A., Ramli, R., Palil, M. R., & Amir, A. M. (2022). The Influence of Power and Trust on Tax Compliance Motivation in Malaysia. International Journal of Economics and Management, 15(1), 133–148. Scopus.
Wahl, I., Kastlunger, B., & Kirchler, E. (2010). Trust in Authorities and Power to Enforce Tax Compliance: An Empirical Analysis of the ‘Slippery Slope Framework’. ERN: Experimental Economics (Topic). https://doi.org/10.1111/j.1467-9930.2010.00327.x
DOI: http://dx.doi.org/10.22441/jurnal_mix.2026.v16i1.014
Refbacks
- There are currently no refbacks.