Drivers of tax compliance: Survey evidence from 1761 Greek micro-firms

In countries where tax compliance is low and tax evasion is widespread, the specific compliance behavior of micro-business owners remains poorly understood. This study addresses this gap by analyzing both voluntary and enforced tax compliance among a nationally representative sample of 1761 micro-business owners in Greece. Guided by the Slippery Slope Framework (SSF), we find that trust in tax authorities is closely associated with voluntary compliance, whereas perceptions of coercive power are primarily linked to enforced compliance. Notably, women leading micro-businesses report higher trust and stronger compliance intentions across both motivational types. Perceptions of fairness, legitimacy, and corruption, as well as emotional responses toward tax authorities, are related to trust and indirectly associated with voluntary compliance. Our findings underscore the central role of trust in understanding cooperative taxpayer behavior and suggest that service-oriented, transparent, and fair administrative practices could support greater voluntary compliance, particularly within the micro-business sector.