The relationship between tax authority power and voluntary tax compliance – Slippery slope theory approach

Abstract

With a purpose of ensuring revenue for the State budget, it is extremely important for taxpayers to comply with tax laws. Furthermore, it is clear that in order for taxpayers to comply with tax laws, it is necessary for relevant authorities to issue clear and complete regulations and have timely and appropriate sanctions. Thereby, demonstrating the power of state agencies (and specifically here tax authorities) is essential. This study will examine the relationship between the power of tax authorities and tax law compliance from the perspective of slippery slope theory, and use data collected from businesses in Ho Chi Minh City to examine this relationship.