<p>Tax compliance is a cornerstone of fiscal responsibility, yet the impact of corruption scandals on voluntary tax compliance remains underexplored. Building on Psychological Reactance Theory and complemented by Institutional Trust Theory, this research explores how skepticism, perceived hypocrisy, and moral anger shape voluntary tax compliance among young Indonesian taxpayers during an ongoing boycott in February 2023. While previous research has focused primarily on individual-level drivers of tax behavior, this study highlights the role of perceived institutional legitimacy. Through a survey of 294 valid responses captured in the natural context of the boycott, the study authentically reflects public emotions and controversy, free from artificially induced moral outrage. The findings reveal that skepticism is a key driver influencing voluntary tax compliance, while moral anger moderates the relationship between perceived corporate social responsibility (CSR) and compliance behavior. Contrary to conventional expectations, skepticism regarding tax institutions' CSR had minimal impact on young taxpayers' willingness to comply with tax regulations. By integrating psychological reactance theory and Institutional Trust Theory into the Indonesian tax compliance landscape, this research positions skepticism as a pivotal factor and highlights moral anger as a critical moderator, offering fresh insights into tax compliance dynamics. These findings contribute to both academic discourse and policymaking in taxation and fiscal governance.</p>

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Why should I pay taxes? Examining Indonesian youth voluntary tax compliance amid tax corruption scandals

  • Rina Herani

摘要

Tax compliance is a cornerstone of fiscal responsibility, yet the impact of corruption scandals on voluntary tax compliance remains underexplored. Building on Psychological Reactance Theory and complemented by Institutional Trust Theory, this research explores how skepticism, perceived hypocrisy, and moral anger shape voluntary tax compliance among young Indonesian taxpayers during an ongoing boycott in February 2023. While previous research has focused primarily on individual-level drivers of tax behavior, this study highlights the role of perceived institutional legitimacy. Through a survey of 294 valid responses captured in the natural context of the boycott, the study authentically reflects public emotions and controversy, free from artificially induced moral outrage. The findings reveal that skepticism is a key driver influencing voluntary tax compliance, while moral anger moderates the relationship between perceived corporate social responsibility (CSR) and compliance behavior. Contrary to conventional expectations, skepticism regarding tax institutions' CSR had minimal impact on young taxpayers' willingness to comply with tax regulations. By integrating psychological reactance theory and Institutional Trust Theory into the Indonesian tax compliance landscape, this research positions skepticism as a pivotal factor and highlights moral anger as a critical moderator, offering fresh insights into tax compliance dynamics. These findings contribute to both academic discourse and policymaking in taxation and fiscal governance.