Research Article
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Year 2020, Volume: 4 Issue: 1, 61 - 93, 31.01.2020
https://doi.org/10.25295/fsecon.2020.01.004

Abstract

References

  • Allingham, M. G. and Sandmo, A. (1972), “Income Tax Evasion: A Theoretical Analysis”. Journal of Public Economics, 1, 323-338. Batırel, Ö. F. (1996), “Tax Evasion and Voluntary Compliance”. Tax World Journal, 175, 52-55.Batrancea, L., Nichita, A., Olsen, J., Kogler, C., Kirchler, E., Hoelz, E., Weiss, A., Torgler, B., Fooken, J., Fuller, J., Schaffner, M., Banuri, S., Hassanein, M., Alarcón-García, G. , Aldemir, C., Apostol, O., Weinberg, D. B., Batrancea, I., Belianin, A., Gómez, F. J. B., Briguglio, M., Dermol, V., Doyle, E., Gcabo, R., Gong, B., Ennya, S., Essel-Anderson, A., Frecknall-Hughes, J., Hasanain, A., Hizen, Y., Huber, O., Kaplanoglou, G., Kudła, J., Lemoine, J. E., Leurcharusmee, S., Matthiasson, T., Mehta, S., Min, S., Naufal, G., Niskanen, M., Nordblom, K., Öztürk, E. B., Pacheco, L., Pántyaa, J., Rapanos, V., Roland-Lévy, C., Roux-Cesar, A. M., Salamzadeh, A., Savadori, L., Schei, V., Sharma, M., Summers, B., Suriya, K., Tran, Q., Villegas-Palacio, C., Visser, M., Xia, C., Yi, S. and Zukauskas, S. (2019), “Trust and power as determinants of tax compliance across 44 nations”. Journal of Economic Psychology, 74, 1-15. Benk, S. and Budak, T. (February 2012), “Power and Trust as Determinants of Voluntary Versus Enforced Tax Compliance: Empirical Evidence for The Slippery Slope Framework from Turkey”. African Journal of Business Management, 6(4), 1499-1505.Biørn, E. (December 2016), Econometrics of Panel Data: Methods and Applications. Oxford Scholarship Online. Brun, B. L. (2013), “Fiscal Sociology: An Innovative Approach of Citizenship and Democracy Design”. In J. G. Backhaus (Edt.), Essentials of Fiscal Sociology: Conception of an Encyclopedia (pp. 11-14). Frankfurt.Campbell, J. L. (1993), “The State and Fiscal Sociology”. Annual Review of Sociology, 19, 163-185. Güriş, S. (2015), Panel Data Models with Stata. Istanbul: Der Bookstore. Gwartney, J., Lawson, R., Hall, J. and Murphy, R. (2018). Economic Freedom of the World: 2018 Annual Report. Fraser Institute. Available from: https://www.fraserinstitute.org/studies/economic-freedom [Accessed 15.11.2019].Hofmann, E., Gangl, K., Kirchler, E. and Stark, J. (2014), “Enhancing Tax Compliance through Coercive and Legitimate Power of Tax Authorities by Concurrently Diminishing or Facilitating Trust in Tax Authorities”. Law and Policy, 36(3), 290-313.Hofmann, E., Hartl, B., Gangl, K., Hartner-Tiefenthaler, M. and Kirchler, E. (January 2017), “Authorities' Coercive and Legitimate Power: The Impact on Cognitions Underlying Cooperation”. Frontiers in Psychology, 8(5), 1-15. James, S. and Alley, C. (2004), “Tax Compliance, Self-Assessment and Tax Administration”. Journal of Finance and Management in Public Services, 2(2), 27-42. Juan, A., Lasheras, M. A., and Mayo, R. (1994), “Voluntary tax compliant behavior of Spanish income tax payers”. Public Finance, 49, 90-105.Kahneman, D. andTversky, A. (March 1979), “Prospect Theory: An Analysis of Decision under Risk”. Econometrica, 47(2), 263-292.Kastlunger, B., Lozza, E., Kirchler, E. and Schabmann, A. (2013), “Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy”. Journal of Economic Psychology, 34, 36-45. Kirchler, E., Hoelzl, E. and Wahl, I. (2008), “Enforced Versus Voluntary Tax Compliance: The ‘‘Slippery Slope’’ Framework”. Journal of Economic Psychology, 29, 210-225.Kogler, C., Batrancea, L., Nichita, A., Pantya, J. and Belianin, A. (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. Kogler, C., Muehlbacher, S. and Kirchler, E. (February 2015), “Testing The ‘Slippery Slope Framework’ Among Self-Employed Taxpayers”. Economics of Governance, 125-142. Legatum Institute (November 2017), The Legatum Prosperity Index 2017 (Eleventh Edition). Lemoine, J. E. and Roland-Levy, C. (May 2013), “Are Taxpayers, Who Pay Their Taxes, All Cooperative Citizens?”. Citizenship TeachingandLearning, 8(2), 195-213.Mardhiah, M., Miranti, R. and Tanton, R. (February 2019), “The Slippery Slope Framework: Extending the Analysis by Investigating Factors Affecting Trust and Power”. CESifo Working Papers, 7494. Martin, I. W., Mehrotra, A. K. and Prasad, M. (2009), “The Thunder of History: The Origins and Development of The New Fiscal Sociology”. In I. W. Martin, A. K. Mehrotra and M. Prasad (Eds.), The New Fiscal Sociology-Taxation in Comparative and Historical Perspective (pp. 1-27). Cambridge: Cambridge University Press. McLure, M. (2003), “Fiscal Sociology”. Economics Program School of Economics and Commerce, The University of Western Australia, Discussion Paper, No. 03.16, 1-10. Muehlbacher, S., Kirchler, E. and Schwarzenberger, H. (2011), “Voluntary versus enforced tax compliance: empirical evidence for the ‘slippery slope’ framework”. European Journal of Law and Economics, 32, 89-97.Nerlove, M., Sevestre, P. and Balestra, P. (2008), “Introduction”, L. Matyas and P. Sevestre (Ed.). The Econometrics of Panel Data: Fundamentals and Recent Developments in Theory and Practice (Third Edition). Verlag Berlin Heidelberg: Springer. OECD (October 2004), Compliance Risk Management: Managing and Improving Tax Compliance. Guidance Note. Paris. OECD (2014), Measures of Tax Compliance Outcomes: A Practical Guide. Paris: OECD Publishing.Padgett, J. F. (July 1981), “Hierarchy and Ecological Control in Federal Budgetary Decision Making”. American Journal of Sociology, 87(1), 75-129. PricewaterhouseCoopers (PwC) and The World Bank, 2009, Paying Taxes 2010. PricewaterhouseCoopers (PwC) and The World Bank, 2010, Paying Taxes 2011. PricewaterhouseCoopers (PwC) and The World Bank, 2011, Paying Taxes 2012. PricewaterhouseCoopers (PwC) and The World Bank, 2012, Paying Taxes 2013. PricewaterhouseCoopers (PwC) and The World Bank, 2013, Paying Taxes 2014. PricewaterhouseCoopers (PwC) and The World Bank, 2014, Paying Taxes 2015. PricewaterhouseCoopers (PwC) and The World Bank, 2015, Paying Taxes 2016.PricewaterhouseCoopers (PwC) and The World Bank, 2016, Paying Taxes 2017.PricewaterhouseCoopers (PwC) and The World Bank, 2017, Paying Taxes 2018.PricewaterhouseCoopers (PwC) and The World Bank, 2018, Paying Taxes 2019.Pukeliene, V. and Kazemekaityte, A. (2016), “Tax Behaviour: Assessment of Tax Compliance in European Union Countries”. Ekonomika, 95(2), 30-56. Roth, J. A., Scholz, J. T. and Witte, A. D. (1989), Taxpayer Compliance: An Agenda for Research. Philadelphia: University of Pennsylvannia Press. Saruç, N. T. (2015), Tax Compliance: Theory and Policy. Ankara: Seçkin Publishing. Silva, F. P., Guerreiro, R. and Flores, E. (2019), “Voluntary versus enforced tax compliance: the slippery slope framework in the Brazilian context”. International Review of Economics, 66, 147-180. Song, Y. and Yarbrough, T. E. (September/October 1978), “Tax Ethics and Taxpayer Attitudes: A Survey”. Public Administration Review, 38(5), 442-452. The World Bank, https://www.worldbank.org/. Vasquez, I. and Porcnik, T. (2018), The Human Freedom Index 2018-A Global Measurement of Personal, Civil and Economic Freedom. Cato Institute, The Fraser Institute, and the Friedrich Naumann Foundation for Freedom. Available from: https://www.fraserinstitute.org/sites/default/files/human-freedom-index-2018.pdf [Accessed 15.11.2019]. Yerdelen Tatoğlu, F. (October 2016), Panel Data Econometrics (Extended 3rd Edition). Istanbul: Beta Printing.Yitzhaki, S. (1974), “A Note on Income Tax Evasion: A Theoretical Analysis”. Journal of Public Economics, 3, 201-202. Wahl, I., Kastlunger, B. and Kirchler, E. (October 2010), “Trust in Authorities and Power to Enforce Tax Compliance: An Empirical Analysis of the “Slippery Slope Framework””. Law and Policy, 32(4), 383-406.

Testing the Slippery Slope Framework in the Scope of Fiscal Sociology: A Study on the Classification of Income Levels

Year 2020, Volume: 4 Issue: 1, 61 - 93, 31.01.2020
https://doi.org/10.25295/fsecon.2020.01.004

Abstract

The purpose of the study is testing the hypothesis of the slippery slope framework which is "power of authorities and trust in authorities explain tax compliance". Trust in authorities and power of authorities are the two main variables of the theory and in this study, other social, cultural and economic variables that affect tax compliance are included to measure the effects of socio economic variables on tax compliance. In the study, the countries are classified according to their income levels and the data for the period 2007-2017 are analyzed by panel data method. As a result, research suggests that power of authorities and trust in authorities have the most significant impact on tax compliance and additionally the study finds evidence for the assumptions of the slippery slope framework.

References

  • Allingham, M. G. and Sandmo, A. (1972), “Income Tax Evasion: A Theoretical Analysis”. Journal of Public Economics, 1, 323-338. Batırel, Ö. F. (1996), “Tax Evasion and Voluntary Compliance”. Tax World Journal, 175, 52-55.Batrancea, L., Nichita, A., Olsen, J., Kogler, C., Kirchler, E., Hoelz, E., Weiss, A., Torgler, B., Fooken, J., Fuller, J., Schaffner, M., Banuri, S., Hassanein, M., Alarcón-García, G. , Aldemir, C., Apostol, O., Weinberg, D. B., Batrancea, I., Belianin, A., Gómez, F. J. B., Briguglio, M., Dermol, V., Doyle, E., Gcabo, R., Gong, B., Ennya, S., Essel-Anderson, A., Frecknall-Hughes, J., Hasanain, A., Hizen, Y., Huber, O., Kaplanoglou, G., Kudła, J., Lemoine, J. E., Leurcharusmee, S., Matthiasson, T., Mehta, S., Min, S., Naufal, G., Niskanen, M., Nordblom, K., Öztürk, E. B., Pacheco, L., Pántyaa, J., Rapanos, V., Roland-Lévy, C., Roux-Cesar, A. M., Salamzadeh, A., Savadori, L., Schei, V., Sharma, M., Summers, B., Suriya, K., Tran, Q., Villegas-Palacio, C., Visser, M., Xia, C., Yi, S. and Zukauskas, S. (2019), “Trust and power as determinants of tax compliance across 44 nations”. Journal of Economic Psychology, 74, 1-15. Benk, S. and Budak, T. (February 2012), “Power and Trust as Determinants of Voluntary Versus Enforced Tax Compliance: Empirical Evidence for The Slippery Slope Framework from Turkey”. African Journal of Business Management, 6(4), 1499-1505.Biørn, E. (December 2016), Econometrics of Panel Data: Methods and Applications. Oxford Scholarship Online. Brun, B. L. (2013), “Fiscal Sociology: An Innovative Approach of Citizenship and Democracy Design”. In J. G. Backhaus (Edt.), Essentials of Fiscal Sociology: Conception of an Encyclopedia (pp. 11-14). Frankfurt.Campbell, J. L. (1993), “The State and Fiscal Sociology”. Annual Review of Sociology, 19, 163-185. Güriş, S. (2015), Panel Data Models with Stata. Istanbul: Der Bookstore. Gwartney, J., Lawson, R., Hall, J. and Murphy, R. (2018). Economic Freedom of the World: 2018 Annual Report. Fraser Institute. Available from: https://www.fraserinstitute.org/studies/economic-freedom [Accessed 15.11.2019].Hofmann, E., Gangl, K., Kirchler, E. and Stark, J. (2014), “Enhancing Tax Compliance through Coercive and Legitimate Power of Tax Authorities by Concurrently Diminishing or Facilitating Trust in Tax Authorities”. Law and Policy, 36(3), 290-313.Hofmann, E., Hartl, B., Gangl, K., Hartner-Tiefenthaler, M. and Kirchler, E. (January 2017), “Authorities' Coercive and Legitimate Power: The Impact on Cognitions Underlying Cooperation”. Frontiers in Psychology, 8(5), 1-15. James, S. and Alley, C. (2004), “Tax Compliance, Self-Assessment and Tax Administration”. Journal of Finance and Management in Public Services, 2(2), 27-42. Juan, A., Lasheras, M. A., and Mayo, R. (1994), “Voluntary tax compliant behavior of Spanish income tax payers”. Public Finance, 49, 90-105.Kahneman, D. andTversky, A. (March 1979), “Prospect Theory: An Analysis of Decision under Risk”. Econometrica, 47(2), 263-292.Kastlunger, B., Lozza, E., Kirchler, E. and Schabmann, A. (2013), “Powerful authorities and trusting citizens: The Slippery Slope Framework and tax compliance in Italy”. Journal of Economic Psychology, 34, 36-45. Kirchler, E., Hoelzl, E. and Wahl, I. (2008), “Enforced Versus Voluntary Tax Compliance: The ‘‘Slippery Slope’’ Framework”. Journal of Economic Psychology, 29, 210-225.Kogler, C., Batrancea, L., Nichita, A., Pantya, J. and Belianin, A. (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. Kogler, C., Muehlbacher, S. and Kirchler, E. (February 2015), “Testing The ‘Slippery Slope Framework’ Among Self-Employed Taxpayers”. Economics of Governance, 125-142. Legatum Institute (November 2017), The Legatum Prosperity Index 2017 (Eleventh Edition). Lemoine, J. E. and Roland-Levy, C. (May 2013), “Are Taxpayers, Who Pay Their Taxes, All Cooperative Citizens?”. Citizenship TeachingandLearning, 8(2), 195-213.Mardhiah, M., Miranti, R. and Tanton, R. (February 2019), “The Slippery Slope Framework: Extending the Analysis by Investigating Factors Affecting Trust and Power”. CESifo Working Papers, 7494. Martin, I. W., Mehrotra, A. K. and Prasad, M. (2009), “The Thunder of History: The Origins and Development of The New Fiscal Sociology”. In I. W. Martin, A. K. Mehrotra and M. Prasad (Eds.), The New Fiscal Sociology-Taxation in Comparative and Historical Perspective (pp. 1-27). Cambridge: Cambridge University Press. McLure, M. (2003), “Fiscal Sociology”. Economics Program School of Economics and Commerce, The University of Western Australia, Discussion Paper, No. 03.16, 1-10. Muehlbacher, S., Kirchler, E. and Schwarzenberger, H. (2011), “Voluntary versus enforced tax compliance: empirical evidence for the ‘slippery slope’ framework”. European Journal of Law and Economics, 32, 89-97.Nerlove, M., Sevestre, P. and Balestra, P. (2008), “Introduction”, L. Matyas and P. Sevestre (Ed.). The Econometrics of Panel Data: Fundamentals and Recent Developments in Theory and Practice (Third Edition). Verlag Berlin Heidelberg: Springer. OECD (October 2004), Compliance Risk Management: Managing and Improving Tax Compliance. Guidance Note. Paris. OECD (2014), Measures of Tax Compliance Outcomes: A Practical Guide. Paris: OECD Publishing.Padgett, J. F. (July 1981), “Hierarchy and Ecological Control in Federal Budgetary Decision Making”. American Journal of Sociology, 87(1), 75-129. PricewaterhouseCoopers (PwC) and The World Bank, 2009, Paying Taxes 2010. PricewaterhouseCoopers (PwC) and The World Bank, 2010, Paying Taxes 2011. PricewaterhouseCoopers (PwC) and The World Bank, 2011, Paying Taxes 2012. PricewaterhouseCoopers (PwC) and The World Bank, 2012, Paying Taxes 2013. PricewaterhouseCoopers (PwC) and The World Bank, 2013, Paying Taxes 2014. PricewaterhouseCoopers (PwC) and The World Bank, 2014, Paying Taxes 2015. PricewaterhouseCoopers (PwC) and The World Bank, 2015, Paying Taxes 2016.PricewaterhouseCoopers (PwC) and The World Bank, 2016, Paying Taxes 2017.PricewaterhouseCoopers (PwC) and The World Bank, 2017, Paying Taxes 2018.PricewaterhouseCoopers (PwC) and The World Bank, 2018, Paying Taxes 2019.Pukeliene, V. and Kazemekaityte, A. (2016), “Tax Behaviour: Assessment of Tax Compliance in European Union Countries”. Ekonomika, 95(2), 30-56. Roth, J. A., Scholz, J. T. and Witte, A. D. (1989), Taxpayer Compliance: An Agenda for Research. Philadelphia: University of Pennsylvannia Press. Saruç, N. T. (2015), Tax Compliance: Theory and Policy. Ankara: Seçkin Publishing. Silva, F. P., Guerreiro, R. and Flores, E. (2019), “Voluntary versus enforced tax compliance: the slippery slope framework in the Brazilian context”. International Review of Economics, 66, 147-180. Song, Y. and Yarbrough, T. E. (September/October 1978), “Tax Ethics and Taxpayer Attitudes: A Survey”. Public Administration Review, 38(5), 442-452. The World Bank, https://www.worldbank.org/. Vasquez, I. and Porcnik, T. (2018), The Human Freedom Index 2018-A Global Measurement of Personal, Civil and Economic Freedom. Cato Institute, The Fraser Institute, and the Friedrich Naumann Foundation for Freedom. Available from: https://www.fraserinstitute.org/sites/default/files/human-freedom-index-2018.pdf [Accessed 15.11.2019]. Yerdelen Tatoğlu, F. (October 2016), Panel Data Econometrics (Extended 3rd Edition). Istanbul: Beta Printing.Yitzhaki, S. (1974), “A Note on Income Tax Evasion: A Theoretical Analysis”. Journal of Public Economics, 3, 201-202. Wahl, I., Kastlunger, B. and Kirchler, E. (October 2010), “Trust in Authorities and Power to Enforce Tax Compliance: An Empirical Analysis of the “Slippery Slope Framework””. Law and Policy, 32(4), 383-406.
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Primary Language English
Journal Section Articles
Authors

Rana Dayıoğlu Erul 0000-0001-9073-6430

Publication Date January 31, 2020
Published in Issue Year 2020 Volume: 4 Issue: 1

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APA Dayıoğlu Erul, R. (2020). Testing the Slippery Slope Framework in the Scope of Fiscal Sociology: A Study on the Classification of Income Levels. Fiscaoeconomia, 4(1), 61-93. https://doi.org/10.25295/fsecon.2020.01.004

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