Journal Press India^®

Author Details ( * ) denotes Corresponding author

Though the topic tax compliance has been widely approached by various writers in comparison with different tax laws, the factors affecting tax compliance varies across nations and individuals. The most significant measure of accomplishment in the enactment of a new system of taxation is the degree of taxpayers’ voluntary or unenforced compliance. In a self-Assessment System like GST, tax officials and taxpayers perceive one another as parties following similar objectives. Absence of appropriate safeguards to ensure tax compliance can result in significant revenue losses and potentially jeopardize a nation’s financial system. Evaluation of the taxpayer voluntary compliance is very essential in the Indian scenario because of the historic reform (introduction of GST) that happened in the indirect tax system. This study tries to develop a conceptual model focusing on one main research question of what affects taxpayers’ voluntary tax compliance under a Self - Assessment System the most. Therefore, we theoretically explore the influence of antecedent variables such as taxpayer perception, awareness, benefits, constraints and satisfaction on taxpayer compliance behaviour. This paper adds a theoretical model to the body of current literature that enables the governments, tax authorities, policymakers and all other stakeholders to take measures ensuring voluntary compliance from taxpayers.

Keywords

Perception; Awareness; Benefits; Constraints; Satisfaction and Tax Compliance Behaviour

1. Abdul, F. & McFie, J. B. (2019). Tax complexity and compliance cehaviour of carge and medium cized. Review of Integrative Business and Economic Research, 9(2), 90-106.
2. Acharee, M. (2018). Impact of GST on travel and tourism sector in India. Tax Bulletin, 30, 1-8.
3. Adam, M. H. & Yusof, N. M. (2017, December). A comparitive study on the burden of tax compliance costs amongst GST registered companies in Malaysia and abroad. JOSTIP, 3(2), 33-39.
4. Adhikari, R. R. (2017, December). Satisfaction of taxpayers in e-filing of income tax: A Nepalese scenario. SJPG, 41(2), 57-74.
5. Adhikari, R. R. (2020). Taxpayer awareness and understanding on taxpayer compliance in Nepal. Management Dynamics, 23(1), 163-168.
6. Adimasu, N. A. & Daare, W. J. (2017, November). Tax awareness and perception of taxpayers and their voluntary tax compliance decision: Evidence from individual taxpayers in SNNPR, Ethiopia. International Journal of Scientific and Research Publications, 7(11), 686-695.
7. Agarwal, M. (2017, September). Peoples perception about GST: An empirical study. KAAV International Journal of Economics, Commerce and Management, 4(3), 1-6.
8. Akinboade, O. A. (2015). Correlates of tax compliance of small and medium size businesses in Camaroon. Managing Global Transitions, 13(4), 389-413.
9. Alabede, J. O. (2014, June). An exploratory analysis of individual taxpayers’ compliance behaviour in Nigeria: a Study of demographic differences and impact. International Journal of Accounting and Taxation, 2(2), 39-64.
10. Alm, J., Zhang, K., & Liu, Y. (2019). Financial constraints and firm tax evasion. International Tax and Public Finance, 26(3-4), 71-102.
11. Anto, L. O., Husin, H. W., & Bulan, N. L. (2021). Taxpayer awareness, tac knowledge, tac sanctions, public service account ability and. Accounting, 7, 49-58.
12. Assfaw, A. M., & Sebhat, W. (2019, January). Analysis of tax compliance and its determinants: Evidence from Kaffa, Bench Maji and Sheka zones category b tax payers, SNNPR, Ethiopia. Journal of Accounting Finance and Auditing Studies, 5(1), 32-58. Retrieved from doi: 10.32602/jafas.2019.2
13. Awaluddin, I., & Tamburaka, S. (2017). The effect of service quality and taxpayer satisfaction on compliance payment tax motor vehicles at office one roof system in Kendari. The International Journal of Engineering and Science, 6(11), 25-34.
14. Azmi, A., Sapiei, N. S., Mustapha, M. X. & Abdullah, M. (2016, July). SMEs tax compliance cost and it adoption: The case of a value added tax. International Journal of Accounting Information Systems, 23, 1-13.
15. Barhate, G. H. (2017, May). An analytical study of awareness and perception towards GST amongst traders in rural areas. International Research Journal of Engineering and Technology, 4(5), 1133-1142. Retrieved from www.irjet.net
16. Bernad, O. M., Memba, F. S., & Olouch, O. (2018). Influence of tax knowledge and awareness on tax compliance among investors in the export processing zones in Kenya. International Journal of Scientific Research and Management, 6(10), 728-733.
17. Boonyarat, N., Sofian, S., & Wadeecharoen, W. (2015). The antecedents of taxpayers compliance behaviour and effectiveness of Thai local government levied tax. International Business Management, 9(4), 431-439.
18. Brackin, T. (2007, January). Overcoming tax complexity through tax literacy –An analysis of financial literacy research inthe context of the taxation system. Australasian Taxation Teachers Association Conference, 22-24.
19. Breen, J., Seers, S. B., Roberts, I., & Robert, S. (2002, December). The impact of the introduction of the GST on small businesses in Australia. Asian Review of Accounting, 10(1). Retrieved from doi:10.1108/eb060751
20. Brown, R. E., & Mazur, M. J. (2003). IRS’ s comprehensive approach to compliance measurement. National Tax Journal, 56(3), 689-700. Retrieved from https://doi.org/10.17310/ntj.2003.3.15
21. Che Azmi, A. A., Zainuddin, S., Mustapha, M. Z., & Nawi, Y. (2016). The mediating effect of tax fairness on the relationship between tax knowledge, complexity and voluntary compliance. Asian Journal of Accounting Perspectives, 9, 1-12.
22. Chen, L. E., & Taib, M. B. (2016). Goods and Service Tax(GST):Challenges faced by business operators in Malaysia. SHS Web of Conferences 36, 1-20. Retrieved from doi:10.1051/shsconf/2017360002
23. Debere, T. (2014). Business taxpayer’s satisfaction with the tax system in Addis Ababa, Ethiopia. Department of Accounting and Finance. Ethiopia: Addis Ababa University.
24. Defitri, S. Y., & Fauziati, P. (2018). The effect of demographic factors and e-filing usage on tax compliance. International Journal of Engineering & Technology, 7(3.25), 156-158.
25. Deyganto, K. O. (2018). Factors influencing taxpayers’ voluntary compliance attitude with tax system: Evidence from Gedeo Zone of southern Ethiopia. Universal Journal of Accounting and Finance, 92-10. Retrieved from DOI: 10.13189/ujaf.2018.060302
26. Edwards, J. R. (2001). Multidimensional constructs in organizational behaviour rsearch: An integrative analytical framework. Organizational Research Methods, 4(2), 144-192.
27. Eichfelder, S. & Hechtner, F. (2017). Tax compliance costs: Cost burdn and cost reliability. Public Finance Review, 1-29. Retrieved from doi: 10.1177/1091142117691603
28. Estiningsih, W., Mashita, J., & Lestiyono, S. (2019). The effect of perception on the benefits of tax towards the discipline of paying taxes in Jakarta. Journal of Economic Development, Environment and People, 8(3), 16-21.
29. Evans, C., Lignier, P., & Nam, B. T. (2013). Tax compliance costs for the small and medium enterprise business sector: Recent evidence from Australia. Discussion Paper: 003-13, University of Exeter Business School, Tax Administration Research Centre.
30. Famami, A. H. & Norsain. (2019). Factors influencing taxpayers in KPP PratamaPamengkasan. Journal of the Academy of Accounting, 2(2), 104-118.
31. Fatima, H. K. (2018, March). Goods and Service Tax in India: Basic concepts and features. Journal of Investment and Management, 7, 13-18.
32. Fishbein, M., & Ajzen, I. (1975). Belief, attitude, intention and behaviour: An introduction to theory and research. Addison-Wesley Pub.Co.
33. Fochmann, M., & Kroll, E. B. (2016). The effects of rewards on tax compliance decisions. Journal of Economic Psychology, 56, 38-55.
34. Garg, G. (2014). Basic concepts and features of good and service tax in India. International Journal of scientific research and management, 2(2), 542-549. Retrieved from www.ijsrm.in
35. Hassan, I. E., Naeem, A., & Gilzar, Z. (2021). Voluntary tax compliance behaviour of individual taxpayers in Pakistan. Financial Innovation, 7(21). doi:https://doi.org/ 10.1186/s40854-021-00234-4
36. Hastuti, R. (2014, December). Tax awareness and tax education: A perception of potential taxpayers. International Journal of Business, Economics and Law, 5(1), 83-91.
37. Hidayat, N., Handayani, S. R., Otok, B. W., Suhadak, & Darminto. (2014). Measurement model of service quality, regional tax regulations,taxpayer satisfaction level, behavior and complianceusing confirmatory factor analysis. World Applied Sciences Journal, 29(1), 56-61.
38. Hofmann, E., Hoelzl, E., & Kirchler, E. (2008). Preconditions of voluntary tax compliance: Knowledge and evaluation of taxation, norms, fairness, and motivation to cooperate. Europe PMC Author Manuscripts, 216(4), 209-217. Retrieved from doi: 10.1027/0044-3409.216.4.209
39. Isle, M. B., & Freudenberg, B. (2015). Calm waters: GST and cash flow stability for small businesses in Australia. eJournal of Tax Research, 13(2), 492-532.
40. Jackson, B., & Milliron, V. C. (1986). Tax compliance research: Findings, problems,and prospects. Journal of Accounting Literature, 5, 125-165.
41. Jalil, N. A., Samsudin, N., Sarun, A., Ramli, N. R., & Hashim, E. (2015, December). Public awreness, knowledge and understanding of GST. International Journal of Management and Applied Science, 1(11), 21-24.
42. James, S., & Alley, C. (2002, September 10). Tax compliance, self assessment and tax administration. Journal of Finance and Management in Public Services, 2(2), 27-42. Retrieved from http://hdl.handle.net/10036/47458
43. Kasipillai, J. (2000). A practical guide o malysian taxation: Current year assessment. McGraw Hill.
44. Kirchler, E., Hoelzl, E., & Wahl, I. (2008, April). Enforced versus voluntary tax compliance: The slippery slope framework. Journal of Economic Psychology, 29(2), 210-225.
45. Kshetrimayum, R., Chanambam, C., & Kshetrimayum, N. (2019, June). GST in India-An analytical study. International Journal of Advanced Scientific Research and Management, 4(6), 55-58.
46. Lamberton, C., De Neve, J., & Norton, M. I. (2014, April 23). Eliciting taxpayer preferences increases tax compliance. Working paper 14-106. Harvard Business School.
47. Lestari, T., & Wicaksono, M. (2017). Effect of awareness, knowledge and attitude of taxpayers tax compliance for taxpayers in tax service office Boyolali. International Journal of Economics, Business and Accounting Research, 1(1), 12-25.
48. Lignier, P. (2009). The managerial benefits of tax compliance: Perception by small business taxpayers. eJournal of Tax Research, 7(2), 106-133.
49. Liang, L. H., Alifiah, M. N., & Chen, L. E. (2019, May). A proposed GST compliance model of GST registered person in Malaysia. International Journal of Recent Technology and Engineering, 8(1s), 200-206.
50. Listyowati, Samrotun, Y., & Suhendro. (2018). Factors affecting taxpayer compliance in paying taxes. Airlangga Accounting and Business Research Journal, 3(1), 372-395.
51. Loo, E., Evans, C., & McKerchar, M. (2010). Challenges in understanding compliance behaviour of taxpayers in Malaysia. Asian Journal of Business and Accounting, 3(2), 145-161.
52. Mamman, M., Ogunbado, A. F., & Abu-Bakr, A. S. (2016, January- February). Factors influencing customers behavioural intention to adopt islamic banking in northern Nigeria: A proposed framework. IOSR Journal of Economics and Finance, 7(1), 51-55.
53. Masunga, F. J., Mapesa, H. J., Mwakibete, A. N., Derefa, M. J., Myava, J. E., & Kiria, J. S. (2021). The role of mediating effects of user satisfaction and behaviural intention on the influence of the electronic tax system on tax compliance behaviour: An application of bootstrapping technique. The International Journal of Applied Business, 5(2), 137-154.
54. Mckerchar, M. (2002). The impact of complexity on unintentional noncompliance for australian personal income taxpayers. Thesis report, University of New South Wales, Faculty of Law.
55. Miller, T., & Wongsaroj, S. (2018, May). A taxing problem: The impact of tax on small businesses. A taxing problem: A study for Sage. Plum consulting, 1-27.
56. Mohan, V., & Ali, S. (2018). Assessment of the implications of GST roll out on Indian MSME’s. Theoretical Economic Letters, 8, 3567-3580. Retrieved from DOI: 10.4236/tel.2 018.815219
57. Nandal, S., & Diksha. (2018, Septemeber). Perceptions of traders and manufacturers towards GST. Journal of Management Research and Analysis, 5(3), 259-267. Retrieved from doi:10.18231/2394-2770.2018.0041
58. Nayyar, A., & Singh, I. (2018, February). A comprehensive analysis of Goods and Service Tax in India. Indian Journal of Finance, 57-73. Retrieved from doi:10.17010/ijf/2018/ vI212/121377
59. Nguyen, T. T., Pham, T. M., Le, T. T., Truong, T. H., & Tran, M. D. (2020). Determinants influencing tax compliance : The case of Vietnam. Journal of Asian Finance, Economics and Business, 7(2), 65-73.
60. Nurgroho, A., Andini, R., & Raharjo, K. (2016). Effects of taxpayer awareness and taxpayer knowledge of taxpayers on compliance of taxpayers in paying income taxes(Case Study on KPP Semarang Candi). Journal of Accounting, 2(2), 1-13.
61. Oberholzer, R., & Stack, E. M. (2009, October). Perceptions of taxation: A comparative study on different individual taxpayers in South Africa. Journal of Public Administrations, 44(3.1), 737-755.
62. Okon, B. D., & Israel, O. C. (2020). Tax compliance determinants in self assessment system: Empirical evidence from Nigeria. IOSR Journal of Business and Management, 22(3), 33-43.
63. Palil, M. R. (2010). Tax knowledge and tax compliance determinants in self assessment system in Malaysia. Birminham Business School, Department of Accounting and Finance. Birmingham: The University of Birmingham.
64. Palil, M. R., & Mustapha, A. F. (2011, December 21). Factors affecting tax compliance behaviour in self assessment system. African Journal of Business Management, 5(33), 12864-12872. Retrieved from doi:10.5897/AJBM11.1742
65. Pope, J., & Abdul-Jabbar, H. (2008, June). Tax compliance cost of small and medium enterprises in Malaysia: Policy implications. Curtin University of Technology, School of Economics and Finance, 1835-9450.
66. Praharaj, A. (2017, January). GST – Advantages & disadvantages for startups and tiny businesses in India. International Journal of Commerce, Business and Management, 6(1), 30-40.
67. Purohit, M. C. (2010). Issues in the introduction of Goods and Service Tax. Economic & Political Weekly, 45(5), 12-15. Retrieved from http://www.jstor.org/stable/25664058
68. Radhakrishnan, R., L, M. M., & Aithal, P. S. (2019). Review on global implications of Goods and Service Tax and its Indian Scenario. Munich Personal RePec Archive.
69. Rametse, N., Makara, T., Santhariah, A., & Devos, K. (2018). Small and medium sized enterprises and the goods and services tax: An analysis of major implementation issues for Malaysia, Botswana and Australia. UNSW.
70. Ranjithkumar, M. S., & Mohan, S. (2017, September). MSME and implementation of Goods and Service Tax. Journal of Management and Science, 1(1), 117-122.
71. Roy, A. (2017). GST in India:A layman’s guide. Journal of Commerce and Management Thought, 8(2), 219-233. Retrieved from DOI:10.5958/0976-478X.2017.00012.X
72. Saad, N. (2014). Tax knowledge, tax complexity and tax compliance: Taxpayers’ view. Procedia Social and Behavioural Sciences, 109, 1069-1075.
73. Schoonjans, B., Cauwenberge, P. V., Reekmans, C., & Simoens, G. (2011). A survey of tax compliance costs of Flemish SMEs: Magnitude and determinants. Environment and Planning C: Government and Policy, 29, 605-621.
74. Shamsuddin, A., Ruslan, M. I., Halim, A. A., & Zahari, N. F. (2014, June). Educators’ awareness and acceptance towards Goods and Services Tax (GST) implementation in Malaysia: A study in Bandar Muadzam Shah, Pahang. International Journal of Business, Economics and Law, 4(1), 1-10.
75. Sharma, V. (2016, January). Impact and challenges of implementation of GST on Indian economy. International Journal of Research in Commerce and Management, 7(1), 1-3.
76. Shiferaw, N. & Tesfaye, B. (2020). The determinants of voluntary tax compliance (The case category a and b taxpayers in dire dawa administration). International Journal of Scientifica and Research Publication, 10(6), 982-996.
77. Shome, P. (2017). Goods and service tax. Madras Institute of Development Studies, MIDS. Chennai: Madras Institute of Development Studies.
78. Slemord, J. (2004). The economics of corporate tax selfishness. National Tax Journal, 57(4), 877-899.
79. Smulders, S., Stiglingh, F. R., & Fletcher, L. (2012). Tax compliance costs for the small business sector in South Africa — Establishing a baseline. eJournal of Tax Research, 10(2), 184-226.
80. Somani, K. (2018, March). GST: Impact of GST on micro small and medium enterprises. Aayushi International Interdesciplinary Research Journal, 5(3), 133-135.
81. Subramanian, S. M., Thangam G. S. D., Nagendran, N., & Muthu, M. (2019). Performance and consequences of GST for micro small and medium enterprises. International Journal of Research and Analytical Reviews, 6(1), 26-37.
82. Tran-Nam, B. (2015, December). Tax compliance as a red tape to businesses: Conceptual issues and empirical evidence from Australia. Journal of Business & Economic Policy, 2(4), 76-87.
83. Woodward, L., & Tan, L. M. (2015, June). Small business owners attitude towards GST compliance:A preliminary study. Australian Tax Forum, 30, 517-550.
84. Yesegat, W. A., & Fjeldstad, O. H. (2016). Business people’s view of paying taxes in Ethiopia. ICTD working paper 43. Brighton: Institute of Development Studies.