Tax Compliance Case Study

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2.3.3 Effects of Tax payers’ attitude on the tax compliance
In this study, the attitude of the taxpayers is assessed by considering their perception and knowledge and how this affects their relationship with the tax compliance
2.3.3.1 Tax payers’ perception
Understanding tax compliance demands a careful review of taxpayer perceptions of the tax system, and how it can shape Individual perceptions as to fairness of the tax system, the friendliness of the tax system and the size of the fines and penalties levied for non-compliance with the tax requirements.
In pursuit of procedural justice, Tyler and Lind, (1992, cited in Barbuta-Misu 2011, P.74) stated that the components essential for perceived fairness are neutrality of the procedure, trustworthiness of the tax authorities and polite, dignified, and respectful treatment. In this case, taxpayers’ considers the simplicity of the tax laws, the extent of the fines, penalties and related cost of compliance, tax related information and education and the treatment of KRA.
Carnes and Cuccia, (1996, Wartick, 1994 cited in Barbuta-Misu, 2011, P.74) argued that increased information related to tax law and explanations for changes can increase fairness perceptions of tax system. However Jackson and …show more content…

The first sign of a real departure from Allingham and Sandmo’s model was provided by Yitzhaki (1974) who examined taxpayers’ attitude to risk and indicated that where a taxpayer had an absolute risk aversion that decreased with income, then an increase in the tax rate would result in a decrease in evasion (Barbuta-Misu,

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