Tax Authorities' Interaction with Taxpayers: Compliance by Power and Trust

26 Pages Posted: 12 Feb 2013 Last revised: 14 Mar 2017

See all articles by Katharina Gangl

Katharina Gangl

University of Goettingen (Gottingen); Zeppelin University

Eva B. Hofmann

University of Vienna

Erich Kirchler

University of Vienna - Faculty of Psychology

Date Written: March 16, 2012

Abstract

According to the Slippery Slope Framework (SSF; Kirchler, Hoelzl, and Wahl, 2008), tax compliance depends on power of tax authorities and trust in tax authorities. The framework, however, remains silent on the dynamics between power and trust and how these affect the interaction climate between authorities and taxpayers. The aim of the present paper is to differentiate between coercive and legitimate power and between reason-based and implicit trust in order to clarify the dynamics between power and trust. Insights into these dynamics may be utilized to change the interaction climate from an antagonistic climate into a service or confidence climate.

Keywords: coercive power, legitimate power, reason-based trust, implicit trust, tax compliance

Suggested Citation

Gangl, Katharina and Hofmann, Eva B. and Kirchler, Erich, Tax Authorities' Interaction with Taxpayers: Compliance by Power and Trust (March 16, 2012). WU International Taxation Research Paper Series No. 2012-06. Available at SSRN: https://ssrn.com/abstract=2174917 or http://dx.doi.org/10.2139/ssrn.2174917

Katharina Gangl (Contact Author)

University of Goettingen (Gottingen) ( email )

Platz der Gottinger Sieben 3
Gottingen, D-37073
Germany

Zeppelin University ( email )

Am Seemooser Horn 20
Friedrichshafen, Lake Constance 88045
Germany

Eva B. Hofmann

University of Vienna ( email )

Christies gate 12
Bergen, 5015
Austria
00431427747336 (Phone)

HOME PAGE: http://homepage.univie.ac.at/eva.hofmann/

Erich Kirchler

University of Vienna - Faculty of Psychology ( email )

Universitaetsstrasse 7
Vienna, A-1010
Austria
+43 1 42 7747332 (Phone)
+43 1 42 7747339 (Fax)

HOME PAGE: http://homepage.univie.ac.at/erich.kirchler

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