The Mediating Effect of Tax Fairness on the Relationship Between Knowledge, Complexity and Voluntary Tax Compliance

Main Article Content

Anna Azriati Che Azmi Suria Zainuddin Mohd Zulkhairi Mustapha Yusni Nawi

Abstract

This study aims to examine the mediating role of tax fairness on the relationship between tax knowledge, tax complexity, and voluntary tax compliance. Based on 200 samples of taxpayers, it is found that tax knowledge increases tax fairness perceptions, which, consequently, increases tax compliance behaviour. Similarly, tax fairness perceptions do not reduce the tax compliance directly, but indirectly through the role of tax fairness perceptions. This implies that tax authorities should not only focus on introducing or developing tax rules that are fair to the taxpayers but be able to communicate the rationale of a tax rule in the context of how it permeates fairness into the tax system for certain classes of taxpayers. Our study found that, in situations where tax simplification is not possible, this form of information dissemination could lead to better compliance among taxpayers.


Keywords: Tax Compliance, Knowledge, Fairness, Complexity
JEL Classification: H260

Article Details

How to Cite
CHE AZMI, Anna Azriati et al. The Mediating Effect of Tax Fairness on the Relationship Between Knowledge, Complexity and Voluntary Tax Compliance. Asian Journal of Accounting Perspectives, [S.l.], v. 9, n. 1, p. 1-12, dec. 2016. ISSN 0128-0384. Available at: <http://ajap.um.edu.my/index.php/AJAP/article/view/5897>. Date accessed: 18 oct. 2018.
Section
Research Paper