Do Fairness Perceptions Matter in Tax Compliance? The Effect of Procedural × Distributive Justice Interaction on Intention to Pay Taxes

Abstract

This study examined the interactive effect of procedural and distributive justice on intention to pay taxes. Data for the study were gathered through a cross-sectional survey administrated to category C taxpayers in Addis Ababa and some surrounding Oromia zones. A hierarchical multiple regression and PROCESS macro regression analyses results revealed that taxpayers’ intention to voluntarily comply with tax obligations depends on their perceptions of distributive justice and their emotional attachment with the tax authorities. Moreover, procedural justice was found to be a moderator of the effect of distributive justice on intention to voluntarily pay taxes.

Keywords: Procedural justice, distributive justice, intention to pay taxes voluntarily, interactive effect.

DOI: 10.7176/RJFA/12-3-04

Publication date: February 28^th 2021