Tax Knowledge

Tax Knowledge and Tax Compliance

Tax Knowledge is a vital part of any successful tax administration. Without it, taxpayers may not be as careful in filling out their returns and paying the correct amount of taxes. Previous studies have hypothesized a relationship between tax knowledge and tax compliance. In this paper, we will investigate this relationship and offer recommendations on how to improve tax knowledge.

The MTC model focuses on business taxes and tax planning. It introduces the major concepts of taxation, explains different types of taxpayers, and emphasizes the role of taxation in business decision-making. It also emphasizes tax research, tax ethics, and integration of financial and tax accounting. However, the MTC model limits the depth of coverage of topics covered.

The findings from the Stage 4 study provide a more comprehensive look at tax knowledge and the determinants of taxpayer compliance. This study examined nine variables that were not included in the Stage 3 and Stage 5 studies, and were assessed for their influence on compliance. The results show that tax knowledge does influence compliance, but that the impact varies across respondents. The study also found that personal financial constraints, perceptions of government spending, and influence of referent groups have a strong impact on taxpayer compliance.

A few limitations of the study suggest that it is not representative of the general population. The sample size was relatively small, and the researchers found that there was a small gap between the expected and actual level of knowledge. The findings may be attributed to the fact that practitioners and educators have differing views on the scope of a tax course. This study, however, demonstrates that the overall coverage of tax knowledge in New Zealand is much lower than educators perceive it to be. As a result, it is important to increase tax knowledge in order to achieve positive outcomes.

The results also highlight that the learning outcomes of students differ across different university programs. While some students have a high level of theoretical knowledge, others may not. The differences between ATIs may be due to differences in the way tax educators view the content and technical skills of a tax course. In either case, the learning outcomes of the course may be higher or lower.

The study also examined how the level of tax knowledge among individuals in Malaysia affects tax compliance behavior. Data from a national postal survey were used in this study. The study uses a two-part questionnaire. The first part describes the demographic characteristics of respondents and the second part includes the research questions relating to tax knowledge. The data were then analysed using a Likert-style rating scale. With the help of this, a numerical value can be assigned to each case.

The respondents were both educators and practitioners. The majority of respondents had been practicing in the field for more than 5 years. This indicates that more experienced respondents would understand what their job demands and the level of knowledge required.