Reputation, hypocrisy, and moral contempt: a behavioral integrity perspective on youth tax boycotts following a public sector corruption case

Purpose This study aims to investigate the repercussions of a high-profile public sector corruption case in February 2023, involving the embezzlement and illicit enrichment of a senior Indonesian tax official, on youth tax boycott intentions. Grounded in Behavioral Integrity Theory, it investigates the magnitude to which perceived institutional reputation, perceived hypocrisy and moral contempt influence civic resistance among young taxpayers. The central research question examines the extent to which these factors contribute to youth-led tax boycotts in response to public sector corruption. Design/methodology/approach The authors use SmartPLS 4 to analyze 273 valid survey responses from young taxpayers collected during an ongoing boycott movement. By capturing real-time reactions, this study authentically reflects the emotional intensity and public controversy surrounding the corruption incident without artificially inducing moral contempt. Findings The results reveal that a tarnished institutional reputation alone does not significantly drive tax boycott intentions unless compounded by perceptions of institutional hypocrisy. Furthermore, moral contempt serves as an emotional catalyst, amplifying the effect of perceived institutional hypocrisy on tax resistance behavior. These findings advance understanding of the moral and emotional mechanisms underpinning citizen disengagement in response to perceived breaches of institutional integrity. Practical implications The Indonesian Tax Authority must move beyond superficial reputation management by proactively addressing perceived institutional hypocrisy and rising moral contempt through transparent accountability mechanisms and demonstrable ethical governance, to rebuild public trust and mitigate the risk of tax boycott behavior among young taxpayers. Originality/value This study provides a novel contribution to the literature on taxpayer resistance by conceptualizing it as a manifestation of the reputation commons tragedy within public governance. By extending Behavioral Integrity Theory to the public sector context, and incorporating the mediating role of perceived institutional hypocrisy and the moderating effect of moral contempt, this study demonstrates the extent to which ethical transgressions within public institutions – particularly the Indonesian Tax Authority – contribute to intensified tax boycott intentions.