How does trust affect concessionary behavior in tax bargaining?

Jahr: 2022

Typ: Journal Publication

Fachzeitschrift: FinanzArchiv

Abstract

We study the bargaining behavior between auditor and auditee in a tax setting and scrutinize the effect of interpersonal trust and trust in government on both parties’ concessions. We find evidence that both kinds of trust affect the concessionary behavior, albeit in different ways. While trust in government affects concessionary behavior in line with intuitive predictions, we find that interpersonal trust only affects tax auditors. For high interpersonal trust, the alleviating effect of high trust in government on tax auditors’ concessions is less pronounced. Our findings help tax authorities to shape programs to enhance compliance in an atmosphere of trust.

Veröffentlichungsinformationen

TRR 266 researchers

Caren Sureth-Sloane Paderborn University

Prof. Caren Sureth-Sloane is Professor of Business Administration, especially Business Taxation at Paderborn University and is the spokesperson of the DFG-funded Collaborative Research Center TRR 266 Accounting for Transparency. She studies the effects of taxation on corporate decisions, especially on risky investments, as well as international business taxation and tax complexity. Since 2010, she has been Guest Professor at the Vienna University of Economics and Business and Principal Investigator of the FWF Doctoral Program in International Business Taxation (DIBT). She received offers from the University of Graz, the Humboldt University of Berlin, the Goethe University of Frankfurt, and the University of Cologne. She is a member of the working group “taxes” and “transfer prices” of the Schmalenbach-Gesellschaft, of which she has been vice president since 2019. In 2013 Caren Sureth-Sloane was appointed a full member of the North Rhine-Westphalian Academy of Sciences, Humanities and the Arts. She is also a member of the DFG-Senate since 2021. Sureth-Sloane received an honorary doctorate from the Faculty of Business, Economics and Social Sciences at the University of Graz in 2021 and an honorary doctorate from the Faculty of Business Studies and Economics at the University of Bremen in 2022.

Yuchen Wu University of St. Gallen

External researchers

Eva Eberhartinger

Raffael Speitmann

Start Page

112

End Page

155

Issue Number

1-2

Volume Number

DOI

DOI Link

To cite this article

Eberhartinger, E., Speitmann, R., Sureth-Sloane, C., & Wu, Y. (2022). How does trust affect concessionary behavior in tax bargaining?. FinanzArchiv, 78(1-2), 112-155. https://doi.org/10.1628/fa-2022-0002

Zugehörige Projekte

A05

Accounting for Tax Complexity

+ 7

Abstract

Zugehörige Projekte

Accounting for Tax Complexity

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