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Tax climate manipulation on individual tax behavioural intentions

Purpose The purpose of this paper is to extend the slippery slope framework by exploring different dimensions of compliance quality and tax minimisation under different tax climate manipulation by groups. Design/methodology/approach The authors run a random assignment of tax climate manipulations th...

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Main Authors: Chong, K. Rine, Yusri, Yusniyati, Selamat, Aslam Izah, Ong, Tze San
Format: Article
Language:English
Published: Emerald 2019
Online Access:http://psasir.upm.edu.my/id/eprint/82143/1/Tax%20climate.pdf
http://psasir.upm.edu.my/id/eprint/82143/
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spelling my.upm.eprints.821432020-10-16T20:35:12Z http://psasir.upm.edu.my/id/eprint/82143/ Tax climate manipulation on individual tax behavioural intentions Chong, K. Rine Yusri, Yusniyati Selamat, Aslam Izah Ong, Tze San Purpose The purpose of this paper is to extend the slippery slope framework by exploring different dimensions of compliance quality and tax minimisation under different tax climate manipulation by groups. Design/methodology/approach The authors run a random assignment of tax climate manipulations through questionnaire with 301 usable data collected from the full-time postgraduate students, employed individuals and self-employed individuals. Manipulation check and results are generated via multivariate analysis of variance. Findings The results confirm the biggest impact of synergistic climate on voluntary compliance, and small to medium impact of antagonistic climate on tax evasion across three groups. Research limitations/implications The manipulation of this research is constrained with two treatments in addition to the common pitfall of social desired responses of self-report. Practical implications Theoretically, this study empirically explores tax minimisation dimensions and provides new insights that only illegal tax minimisation is at maximum under the prevailing negative antagonistic climate, but not for legal tax minimisation. Second, the effect of tax climate represented by trust and power on enforced compliance is minimal, as compared to the strong effect of positive synergistic climate on voluntary compliance. As for policy implications, possible guidelines and interventions are outlined to policy makers which would lead to a better quality of compliance behaviour. Originality/value This study operationalises and manipulates tax climate from perceptions of trust, legitimate power and coercive power. It also further affirms the prior inconsistent findings in respect of tax behavioural intentions due to sampling group and cultural differences. Emerald 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/82143/1/Tax%20climate.pdf Chong, K. Rine and Yusri, Yusniyati and Selamat, Aslam Izah and Ong, Tze San (2019) Tax climate manipulation on individual tax behavioural intentions. Journal of Applied Accounting Research, 20 (3). pp. 230-242. ISSN 0967-5426 10.1108/JAAR-01-2019-0001
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description Purpose The purpose of this paper is to extend the slippery slope framework by exploring different dimensions of compliance quality and tax minimisation under different tax climate manipulation by groups. Design/methodology/approach The authors run a random assignment of tax climate manipulations through questionnaire with 301 usable data collected from the full-time postgraduate students, employed individuals and self-employed individuals. Manipulation check and results are generated via multivariate analysis of variance. Findings The results confirm the biggest impact of synergistic climate on voluntary compliance, and small to medium impact of antagonistic climate on tax evasion across three groups. Research limitations/implications The manipulation of this research is constrained with two treatments in addition to the common pitfall of social desired responses of self-report. Practical implications Theoretically, this study empirically explores tax minimisation dimensions and provides new insights that only illegal tax minimisation is at maximum under the prevailing negative antagonistic climate, but not for legal tax minimisation. Second, the effect of tax climate represented by trust and power on enforced compliance is minimal, as compared to the strong effect of positive synergistic climate on voluntary compliance. As for policy implications, possible guidelines and interventions are outlined to policy makers which would lead to a better quality of compliance behaviour. Originality/value This study operationalises and manipulates tax climate from perceptions of trust, legitimate power and coercive power. It also further affirms the prior inconsistent findings in respect of tax behavioural intentions due to sampling group and cultural differences.
format Article
author Chong, K. Rine
Yusri, Yusniyati
Selamat, Aslam Izah
Ong, Tze San
spellingShingle Chong, K. Rine
Yusri, Yusniyati
Selamat, Aslam Izah
Ong, Tze San
Tax climate manipulation on individual tax behavioural intentions
author_facet Chong, K. Rine
Yusri, Yusniyati
Selamat, Aslam Izah
Ong, Tze San
author_sort Chong, K. Rine
title Tax climate manipulation on individual tax behavioural intentions
title_short Tax climate manipulation on individual tax behavioural intentions
title_full Tax climate manipulation on individual tax behavioural intentions
title_fullStr Tax climate manipulation on individual tax behavioural intentions
title_full_unstemmed Tax climate manipulation on individual tax behavioural intentions
title_sort tax climate manipulation on individual tax behavioural intentions
publisher Emerald
publishDate 2019
url http://psasir.upm.edu.my/id/eprint/82143/1/Tax%20climate.pdf
http://psasir.upm.edu.my/id/eprint/82143/
_version_ 1681490850717106176
score 13.211869

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