Intergenerational Perceptions of Coercive and Legitimate Power

This is the first research to examine the perception of the coercive and legitimate power of tax authority between three generations, namely Millennials, X and Baby Boomers. Method of data collection used a survey with a total sample of 120 taxpayers from two types of business, retail/production and services/professions in five major cities in Indonesia (Jakarta, Surabaya, Bandung, Semarang, and Denpasar). This survey was held in 2018. This study used a quota sampling technique with Custom Factorial ANOVA as a statistical tool. We found Millennials and X have a perception that Indonesia tax authority implemented coercive and legitimate power in balance conditions. However, different perceptions found in Baby Boomers that thought of tax authority had been implemented coercive power with more severe punishment. The study also found differences in perceptions of vertical equity, horizontal equity, and exchange equity between the generations.