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Literature Review On Tax Compliance

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2. Literature Review
Prior tax compliance research has largely ignored low-income individual taxpayers such as smallholder farmers taxpayers.This study extends and complements existing tax research by examining the compliance intentions of low-income individual taxpayers. Relying on the different theory of tax compliance behaviour, we examine the extent to which agricultural tax affect tax compliance intentions.
According to Besley & Persson (2014), one reason why low-income countries have lesser levels of taxation may be a weaker ethic of tax compliance than the one that has evolved in high-income countries. So the absence of a strong compliance norm may result in less revenue than would otherwise be expected. Fjeldstad & Heggstad, (2012) …show more content…
It can be viewed at equity, incidence, efficiency, law enforcement, organisational design, ethics, or a combination of all of these (Andreoni et al., 1998). Scholars identified different economic, social, and psychological factors that influence tax compliance (J. Alm et al., 1990; James Alm et al., 1995; Bobek et al., 2013; Erard, 2009; Heinemann & Kocher, 2013; Kastlunger et al., 2010). According to Luttmer & Singhal (2014), the structure of the tax schedule could influence compliance through a tax morale. Fischer, Wartick, & Mark (1992) integrate economic, social and psychological factors into a framework for understanding tax compliance behaviour.The relationship between rural taxpayer and local government includes different …show more content…
Gordon, 1988). This view is supported by James Alm, McClelland, and Schulze (1992) who writes that the tax compliance increases with the availability of public goods and services. A broader perspective has been adopted by Moore (2004) who argues that there be a contractual relationship between the taxpayer and the government due to the provision of public goods financed by taxation. Similarly, Fjeldstad and Semboja (2001) asserts that the reason why individuals pay taxes is due to the recognition that their contribution is essential to finance the goods and services.There will be a high probability that taxpayers will comply more voluntarily due to the expectation of positive benefits.Therefore, it is rational to assume that the taxpayer’s behaviour can be affected by the level of satisfaction with the

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