<![CDATA[This study explores gaps in the literature on tax fraud (TAFR) by examining how corruption perceptions (COPER) and financial uncertainty (FIUN) influence TAFR. It also investigates whether moral disengagement (MORD) acts as a mediator in these relationships. In doing so, we apply social cognitive theory (SCT) as the framework. Uniquely, this study is based on insights gathered from the owners of Indonesian small-sized enterprises operating in East Java Province. The findings suggest that COPER does not directly cause TAFR but influences it indirectly through MORD. This challenges the idea that being aware of corruption automatically leads to unethical behaviour. On the other hand, FIUN has a direct impact on TAFR that economic hardship can drive people to make immediate, practical decisions to survive, without relying on cognitive justifications. Theoretically, this study highlights how corruption and financial pressures work together to shape unethical choices related to tax compliance. Practically, this study offers valuable insights for policymakers and regulators. In general, this study provides a more comprehensive view of tax fraud by moving beyond simple cause-and-effect models to a deeper understanding of its drivers in emerging economies.]]>
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