Last Updated on October 3, 2023 by Fiza Khurram
A recent study conducted by researchers from Arid Agriculture University Rawalpindi, Bahria University Islamabad, and Capital University of Science & Technology explores the complex relationship between taxpayer perception and tax compliance, focusing on how the adoption of e-tax systems moderates these dynamics in Pakistan.
The study, directed by Muhammad Shahab Abbasi, Muhammad Awais, Muhammad Noman Khalid, and Anum Shafique, examines the effect of important variables such as perceptions of fairness, tax knowledge, and tax complexity on tax compliance. The research also investigates the moderating effect of e-tax systems on the behavior of taxpayers.
Utilizing a self-administered questionnaire and the convenience sampling method, data were collected from a sample of 163 individuals using a deductive methodology. Data analysis, conducted out using SPSS and multiple regression techniques, yielded compelling insights into the complex interplay of factors influencing tax compliance in the Pakistani context.
The findings demonstrate a direct relationship between perceptions of fairness and tax compliance, highlighting the significance of taxpayers’ perceptions of the tax system’s fairness in their compliance behavior. The study indicates, however, that the relationship between the adoption of e-tax systems and taxpayer perceptions and tax compliance is insignificant.
In addition, the study reveals that tax knowledge and tax complexity have no appreciable effect on tax compliance in the Pakistani tax landscape.
The study sheds light on the evolving dynamics of taxation and the central role played by e-tax systems in influencing the behavior of taxpayers in a world increasingly embracing digital transformations. Understanding the nuances of taxpayer perceptions and the impact of technological interventions is crucial for policymakers and tax authorities as nations struggle to modernize their tax structures.
This study offers a nuanced perspective on the complex web of factors that influence taxpayer behavior in the digital age, thereby contributing to the ongoing discourse surrounding tax compliance.
