| Previous studies showed mixed findings regarding the relationship between the different types of power and tax compliance motivations. |
| Previous studies showed mixed findings regarding the relationship between the different types of power and tax compliance motivations. Besides, past studies that applied the slippery slope framework and the extended version had neglecting reward power. Empirical evidence on the relationships between different types of trust in tax administrators and tax compliance motivations is also limited. Therefore, this study examines the relationship between tax administrators’ power and trust in tax administrators with tax compliance motivations. This study applied a quantitative approach using a mailed survey questionnaire on 388 professional taxpayers in Malaysia. The data were analyzed using structural equation modeling (SEM) using AMOS Graphic. First, in line with the slippery slope and the extended version, coercive power, and legitimate foundation power have a significant positive relationship with enforced compliance. Second, this article also found that voluntary cooperation is influenced positively by reward power, persuasive power, and reason-based trust. Lastly, committed cooperation is influenced by coercive power negatively, and positively by legitimate foundation power, reward power, and implicit trust. Besides contributing to existing literature, the findings are useful for tax administrators in designing their regulatory strategies. This study suggests that tax administrators implement a targeted approach in which regulatory strategies depend on taxpayers’ characteristics and the tax environment. This targeted approach allows for the highest level of compliance to be achieved at the lowest cost. |
