Tax Education and Tax Compliance: A Review of Literature
DOI:
https://doi.org/10.53819/81018102t4235Abstract
The study sought to carry out a critical review of literature on tax education and tax compliance. Based on the review of empirical literature, it was found that tax education has significant effect on tax compliance. It was consequently concluded that tax education is important in predicting the level of tax compliance. The study recommends that in order to improve the tax compliance level, governments should put in place and sustain public tax awareness programs as these will highlight the importance of tax revenue which is driven by tax compliance level. Tax authorities should support tax education as this has a favorable impact on taxpayer compliance and subsequently tax revenue. In order to improve on the general tax knowledge of citizens and subsequently increase tax compliance, revenue authorities and players in the educational sector should collaborate and come up with tax awareness activities.
Keywords: Tax Education, Tax Compliance, Stakeholder Theory and Theory of Planned Behaviour
References
Abbas, Y., Tjen, C., & Wicaksono, P. T. (2021).Tax Education and Tax Awareness: An Analysis on Indonesian Tax Education Program (No. 202160). LPEM, Faculty of Economics and Business, University of Indonesia.https://ideas.repec.org/p/lpe/wpaper/202160.html.
Abina, S., Amaning, N., Anim, R.O., Kyere, A., & Kwakye, G. (2021). Tax Compliance among Ghanaian SMEs: How impactful is Taxpayer Education? International Journal of Academic Research in Accounting, Finance and Management Sciences, 10, 40-58. https://doi.org/10.6007/IJARAFMS/v10-i4/8332
Adekoya, A.C. (2019). Taxpayers Education and Tax Compliance in Lagos State.
Adekoya, A.C. (2021). Taxpayer education and tax compliance in Lagos State. Global Journal of Accounting, 5(1), 16 – 26.
Ajzen, I. (1991). The theory of planned behavior. Organizational behavior and human decision processes, 50(2), 179-211. https://doi.org/10.1016/0749-5978(91)90020-T
Ajzen, I., & Fishbein, M. (1970). The prediction of behavior from attitudinal and normative variables. Journal of experimental social Psychology, 6(4), 466-487. https://doi.org/10.1016/0022-1031(70)90057-0
Akintoye, R.I., & Onuoha, L.N. (2019). Tax Revenue Sustainability: The Role of Tax Education and Enlightenment. Research Journal of Finance and Accounting.
Albert, Á., & Fadjarenie, R.A. (2022). Early tax education: Could it change the future compliance behavior? International Journal of Evaluation and Research in Education (IJERE). https://doi.org/10.11591/ijere.v11i4.22241
Al-Ttaffi, L. H. A., Bin-Nashwan, S. A., Amrah, M. R. (2020). The influence of tax knowledge on tax compliance behaviour: A case of Yemeni individual taxpayers. Journal of Business Management and Accounting, 10(2), 15-30. https://doi.org/10.32890/jbma2020.10.2.2
Amin, S. , Buhari, P. , Yaacob, A. and Iddy, Z. (2022) Exploring the Influence of Tax Knowledge in Increasing Tax Compliance by Introducing Tax Education at Tertiary Level Institutions. Open Journal of Accounting, 11, 57-70. doi: 10.4236/ojacct.2022.112004.
Anyaduba, J.O. & Balogun, J. E (2018). Tax education and tax compliance among SMESs in Edo state. Journal of Taxation and Economic Development. The official journal of the chartered instituteof taxation of Nigeria. 17(1).
Aremu, E., & Siyanbola, T. (2021). Tax Education and Compliance in the Informal Sector of Ogun State Nigeria. Macroeconomics: Employment.
Budiman, I.A., & Inayati, I. (2021). Effect of Notice of Tax Warning, Notice of Tax Collection, and Tax Education Programs on Tax Compliance in West Sumatera and Jambi. https://doi.org/10.31314/pjia.10.1.45-63.2021
Cooke, R., Dahdah, M., Norman, P., & French, D. P. (2016). How well does the theory of planned behaviour predict alcohol consumption? A systematic review and meta-analysis. Health psychology review, 10(2), 148-167. https://doi.org/10.1080/17437199.2014.947547
Efebera, H.D., C. Hayes, J. E. Hunton, and C. O’Neil, 2004. “Tax Compliance Intentions of Low-Income Individual Taxpayers”, Advances in Accounting Behavioral Research, 7, pp. 1-25. https://doi.org/10.1016/S1475-1488(04)07001-2
Faccia, A., & Mosteanu, N. R. (2019). Tax Evasion Information System and Blockchain. Journal of Information Systems & Operations Management, 13(1), 65–74.
Freeman, RE (1984). Strategic management: A stakeholder approach. Cambridge University Press Location Cambridge, UK . 74922, 978-0273019138.
Gilbert, D. U., & Rasche, A. (2008). Opportunities and problems of standardized ethics initiatives–a stakeholder theory perspective. Journal of business ethics, 82, 755-773. https://doi.org/10.1007/s10551-007-9591-1
Hamid, N.A., Ismail, I.S., Yunus, N.R., Jali, M.N., & Rosly, A.S. (2022). Taxpayer Perceptions of Tax Awareness, Tax Education, and Tax Complexity among Small and Medium Enterprises in Malaysia: A Quadrant Analysis Approach. Universal Journal of Accounting and Finance. https://doi.org/10.13189/ujaf.2022.100124
Hassan, I., Naeem, A., & Gulzar, S. (2021). Voluntary tax compliance behavior of individual taxpayers in Pakistan. Financial Innovation, 7, 1-23. https://doi.org/10.1186/s40854-021-00234-4
Hidayati, B., Hermanto, F.Y., & Nnamdi, A.O. (2023). Tax education and tax compliance: A multi-ethnic analysis. Journal of Islamic Finance and Accounting. https://doi.org/10.22515/jifa.v6i1.6231
Hoi, C-K., Wu, Q. and Zhang H. (2013). Is Corporate Social Responsibility (CSR) Associated with Tax Avoidance? Evidence from Irrespon. The Accounting Review 88(6):2025-2059. DOI:10.2308/accr-50544.2. https://doi.org/10.2308/accr-50544
Keeling, E. (2022). Wide of the Mark? Are Targeted Anti-Avoidance Rules in UK Tax Legislation Doing Their Job. Statute Law Review, 43(2), 153-169. https://doi.org/10.1093/slr/hmac003
Klee, R., S. Bamberg, S. Erten and D. Graf, 2000. "Analysing Determinants of Educational Methods in Environmenta1 Education by Using the Theory of Planned Behaviour", In H. Bayrhuber and U. Unterbmnner (Eds.). Lehren und Lernen im Biologieunter-richt, Innsbruck: Studienverlag, pp .46-53.
Kurniawan, d. (2020). The influence of tax education in higher education on tax knowledge and its effect on personal tax compliance. Journal of Indonesian economy and business, 35, 57-72. https://doi.org/10.22146/jieb.54292
Lizzy, O.F., & Joel, N. (2021). Taxpayers’ Education: Enhancing Tax Compliance in the Informal Sector of Nigeria. International Journal of Innovative Research and Development. https://doi.org/10.24940/ijird/2021/v10/i2/FEB21002
Lutfillah, N.Q., & Ndapa, A.E. (2022). Determinants of Individual Taxpayer Compliance: Motivation, Level of Education, And Tax Sanctions. Jurnal Pajak Indonesia (Indonesian Tax Review). https://doi.org/10.31092/jpi.v6i2S.1965
Mititelu, R.A., Amzuica, B., Chiriac, A., & Nișulescu, I.A. (2022). Fiscal morality and the underground economy in countries of the European Union and the USA. Technium Social Sciences Journal. https://doi.org/10.47577/tssj.v36i1.7473
Modi, A. C., & Driscoll, K. A. (Eds.). (2020). Adherence and self-management in pediatric populations. Academic Press.
Mohd Yusof, N. A., Safeei, R., & Lee, C. C. (2022). Introducing Tax Education in Non-Accounting Curriculum: Evidence from Academicians. Proceedings, 82(8), 1–9.https://doi.org/10.3390/proceedings2022082008.
Nawawi, A. and Salin, A.S.A.P. (2018), “Capital statement analysis as a tool to detect tax evasion”, International Journal of Law and Management, Vol. 60 No. 5. https://doi.org/10.1108/IJLMA-03-2017-0024
Ndubula, E., & Matiku, E. (2021). The Effects of Tax Education on Government Revenue Collection: The Case of Small and Medium Enterprises in Morogoro Municipality, Tanzania. Journal of Economics, Management and Trade. https://doi.org/10.9734/jemt/2021/v27i730354
Night, S. and Bananuka, J. (2020), "The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance", Journal of Economics, Finance and Administrative Science, Vol. 25 No. 49, pp. 73-88. https://doi.org/10.1108/JEFAS-07-2018-0066.
Ogoun, S., & Ekpulu, G. A. (2020). Educational Level and Tax Compliance:Empirical Evidence From Nigeria. International Journal of Accounting and Financial Reporting, 10(1), 160–176. https://doi.org/10.5296/ijafr.v10i1.16106.
Prihatiningtyas, L., Sembada, E., Widagdo, A. K., & Widarjo, W. (2021). The Effect of Ethnicity on Tax Compliance of Small Medium Enterprise in Indonesia: Trust As Intervening. International Journal of Economics, Business and Management Research, 5(2), 67–80.https://ijebmr.com/uploads/pdf/archivepdf/2021/IJEBMR_680.pdf.
Rahmani Picha, N., Heidarpour, F., & Jahanshad, A. (2022). The Methodology of Social and Stakeholders’ Analysis to Participate in Corporate Sustainability Using Tax Compliance. Iranian Journal of Accounting, Auditing and Finance, (), -. doi: 10.22067/ijaaf.2022.78540.1212.
Sebele-Mpofu, F. Y. (2020). Governance quality and tax morale and compliance in Zimbabwe’s informal sector. Cogent Business & Management, 7(1), 1794662. https://doi.org/10.1080/23311975.2020.1794662
Swee Kiow, T., Claudia, L., Md Kassim, A.A., & Mohd Salleh, M.F. (2021). The Moderating Effect of Individual Taxpayers’ Education Level on Ethical Perception and Tax Compliance Behaviour in Peninsular Malaysia. International Journal of Academic Research in Accounting, Finance and Management Sciences. https://doi.org/10.6007/IJARAFMS/v11-i1/8857
Trawule, A.Y., Gadzo, S.G., Kportorgbi, H.K., & Sam-Quarm, R. (2022). Tax education and fear-appealing messages: A grease or sand in the wheels of tax compliance? Cogent Business & Management, 9. https://doi.org/10.1080/23311975.2022.2049436
Twum, K. K., Amaniampong, M. K., Assabil, E. N., Adombire, M. A., Edisi, D., & Akuetteh, C. (2020). Tax knowledge and tax compliance of small and medium enterprises in Ghana. South East Asia Journal of Contemporary Business, Economics and Law, 21(5), 222-231.
Uvaneswaran, d. (2023). The influence of tax education on tax compliance of a b c category tax payer’s.
Vincent, O. (2021). The development of a scale to measure SMEs tax compliance in Nigeria: An adaptation of Fischers model. Journal of Accounting and Taxation, 13(3), 132-143. https://doi.org/10.5897/JAT2021.0479
Yulianto, Y., Rosalia, F., Atika, D. B., & Alamsyah, A. (2019). Determinant of personal tax compliance in Indonesia. Humanities and Social Sciences Reviews, 7(6), 362–372. https://doi.org/10.18510/hssr.2019.7662.