Tax Authority Versus Peer Communication: The Influence of Trust, Service Climate, and Voluntary Cooperation

This research is the first study to discuss the combined influence of peer
communication and tax authority communication on taxpayers� trust in tax
institutions, perceptions of service climate, and voluntary cooperation. We
also compare the influences of the tax authorities and peer communication
on trust, service climate, and voluntary cooperation. The survey was
conducted in 2019 and represented five major cities in Indonesia (Jakarta,
Surabaya, Semarang, Bandung, and Denpasar). Respondents included 120
self-employed taxpayers in two business fields, namely, trade/production
and services/professions. The respondents mainly included those from the
millenial and generation X age groups due to their significant contribution
to the tax revenue. Participants were recruited using quota sampling, and
the data analysis tools included partial least square with Wrap-PLS software.
Results show that tax authority communication is more powerful in
influencing trust, perception of service climate, and voluntary cooperation,
than peer communication.