Effect of tax justice and morale on taxpayer compliance: the moderating role of trust

This research analyzed the influence of two types of tax justice (procedural and distributive) and morale on tax compliance. The novelty of this research lies in the use of trust as a moderating variable, which is thought to strengthen the influence of procedural and distributive tax justice. To obtain data, questionnaires were sent to 500 respondents, who were taxpayers of micro, small, and medium enterprises in Pekanbaru, Indonesia, and 407 were returned. Data were analyzed using Partial Least Squares Structural Equation Modeling. The results showed that tax justice, both procedural and distributive, as well as tax morale, increased tax compliance. This research also found that the strong level of trust was expected to increase the role of both tax justice and morale in increasing tax compliance, and vice versa. This research has both theoretical and practical implications. It is suggested that tax authorities serve taxpayers fairly and build taxpayer trust to increase compliance. Academically, the study offers insights into taxpayer perceptions and the relationship between trust and taxpayer morale. These findings can be a consideration for the government to conduct continuous evaluation and monitoring to ensure the effectiveness of the policies implemented in improving taxpayer compliance.