What is the relationship between fairness and trust in terms of tax compliance?

Two frequently researched factors in the tax compliance literature are perceptions of fairness and trust. Nevertheless, what is known about the relationship between the two variables is limited. Different findings in the literature have encouraged further research. This study aims to examine the relationship between fairness and trust in tax compliance and the role of these variables with multivariate statistical tests. In this direction, survey data were collected from 540 self-employed taxpayers in Istanbul/Turkey. As a result of the multivariate statistical tests carried out by dividing the data in two, the following conclusions were reached: (1) in line with the findings in the literature, perceptions of tax fairness and trust in tax authorities are essential determinants of tax compliance intention; (2) tax fairness positively affects trust in authorities and trust in authorities positively affects tax fairness; (3) both the mediating and moderating role of trust in tax authorities in the relationship between perceptions of tax fairness and tax compliance intention are confirmed; and (4) although there is a mediating effect of perceptions of tax fairness in the relationship between trust in tax authorities and tax compliance intention, the existence of a moderating effect could not be detected.

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Publication Details

Journal
Journal of Public Finance and Public Choice
Published
2024-09-05
DOI
https://doi.org/10.1332/25156918y2024d000000010
Citations
1
Primary Topic
Taxation and Compliance Studies
Type
article
Field-Weighted Citation Impact
1.13
Controls
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article

What is the relationship between fairness and trust in terms of tax compliance?

Hamdi Furkan Günay
1 citations
Journal of Public Finance and Public Choice
Taxation and Compliance Studies
1.13
article

What is the relationship between fairness and trust in terms of tax compliance?

Hamdi Furkan Günay
article en
1 citations

Abstract

Two frequently researched factors in the tax compliance literature are perceptions of fairness and trust. Nevertheless, what is known about the relationship between the two variables is limited. Different findings in the literature have encouraged further research. This study aims to examine the relationship between fairness and trust in tax compliance and the role of these variables with multivariate statistical tests. In this direction, survey data were collected from 540 self-employed taxpayers in Istanbul/Turkey. As a result of the multivariate statistical tests carried out by dividing the data in two, the following conclusions were reached: (1) in line with the findings in the literature, perceptions of tax fairness and trust in tax authorities are essential determinants of tax compliance intention; (2) tax fairness positively affects trust in authorities and trust in authorities positively affects tax fairness; (3) both the mediating and moderating role of trust in tax authorities in the relationship between perceptions of tax fairness and tax compliance intention are confirmed; and (4) although there is a mediating effect of perceptions of tax fairness in the relationship between trust in tax authorities and tax compliance intention, the existence of a moderating effect could not be detected.

Journal of Public Finance and Public ChoiceVol. 40(1)
Gümüşhane University (TR)
Openalex Percentile: Top 12%
Taxation and Compliance Studies
1.13
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