Skip navigation
Skip navigation

'Trust me, I'm the taxman': The role of trust in nurturing compliance

dc.contributor.authorMurphy, Kristina
dc.contributor.authorAustralian National University. Centre for Tax System Integrity
dc.contributor.authorAustralian Taxation Office
dc.identifier.isbn0 642 76842 0
dc.description.abstractWhy an institution’s rules and regulations are obeyed or disobeyed is an extremely important question for regulatory agencies. This paper discusses the findings of an empirical study that shows that the use of threat and coercion as a regulatory tool—in addition to being more expensive to implement—can actually produce the opposite behaviour from that sought. Using survey data collected from 2301 taxpayers accused of tax avoidance, it will be demonstrated that variables such as trust are just as important for determining compliance. If people trust the motives of authorities, they are more likely to view those authorities as acting fairly, to consider them legitimate, and to defer to their decisions voluntarily. It is therefore argued that to effectively shape desired behaviour, regulators will need to move beyond motivation linked purely to deterrence. Strategies directed at reducing levels of distrust between the two sides may prove particularly effective in gaining voluntary compliance with an organisation’s rules and regulations.
dc.format.extent39 pages
dc.publisherCentre for Tax System Integrity (CTSI), Research School of Social Sciences, The Australian National University
dc.publisherAustralian Taxation Office
dc.relation.ispartofseriesWorking paper (Centre for Tax System Integrity) ; no. 43
dc.rightsCentre for Tax System Integrity, Research School of Social Sciences, Australian National University
dc.rightsCommonwealth of Australia
dc.subject.lcshTaxation - Australia.
dc.title'Trust me, I'm the taxman': The role of trust in nurturing compliance
dc.typeWorking/Technical Paper
local.type.statusPublished Version
local.bibliographicCitation.placeofpublicationCanberra, ACT
dcterms.accessRightsOpen Access
dc.provenancePermission received from RegNet to add their publications to Open Research - ERMS2457502
CollectionsANU Centre for Tax System Integrity (CTSI)


File Description SizeFormat Image
43.pdf272.09 kBAdobe PDFThumbnail

Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  19 May 2020/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator