Trust, Power, and Digital Tax Compliance Across Generations

This study examines how digitalization shapes tax compliance among Millennials and Generation Z in Indonesia by extending the Slippery Slope Framework (SSF) into a digital tax administration context. The study introduces the concept of Perceived Digital Authority, defined as taxpayers’ evaluation of the competence, legitimacy, transparency, trustworthiness, and enforcement capability of tax authorities as experienced through digital tax systems. It investigates the relationships between Digital System Quality, Perceived Digital Authority, and two forms of tax compliance, namely Voluntary Compliance and Enforced Compliance, using survey data from registered individual taxpayers and Partial Least Squares Structural Equation Modeling (PLS-SEM). This study contributes to the tax compliance literature by offering a digital perspective on authority perception and by examining generational differences in the relationships among these constructs in Indonesia.