A conceptual framework of tax knowledge

Abstract

Purpose

This paper aims to develop a conceptual framework of tax knowledge that can be used to analyse and discuss tax knowledge as a factor influencing tax compliance.

Design/methodology/approach

Relevant literature was sourced using keywords pertaining to tax knowledge to identify the constructs of the framework. Thereafter, secondary interview data on small business owners’ tax challenges were thematically analysed to test the proposed framework.

Findings

Three elements of tax knowledge were identified, namely, general, procedural and legal tax knowledge. General tax knowledge relates to a need to have a fiscal awareness; procedural tax knowledge refers to understanding tax compliance procedures; and legal tax knowledge pertains to a need to understand regulations.

Practical implications

The proposed framework may assist future research in providing a structured approach for assessing tax knowledge as a factor influencing tax compliance. The framework may also assist tax authorities in designing targeted tax education outreach programmes for taxpayers and improve their understanding of taxpayer behaviour to influence the compliance behaviour of its taxpayer population.

Originality/value

An acceptable and specific measurement of tax knowledge as a factor of tax-compliance behaviour has been proposed and tested as a tool for analysing and discussing taxpayers’ knowledge variables.

Citation

Bornman, M. and Ramutumbu, P. (2019), "A conceptual framework of tax knowledge", Meditari Accountancy Research, Vol. 27 No. 6, pp. 823-839. https://doi.org/10.1108/MEDAR-09-2018-0379