Perceptions Of Taxation : A Comparative Study Of Different Individual Taxpayers In South Africa
In South Africa, there is a significant gap between the amount of tax that is theoretically collectable from economically active persons and that which is actually collected (commonly known as the tax gap). Non-compliance by taxpayers is one of the main causes of the tax gap. It has been established that one of the main factors leading to non-compliance, is the attitudes and perceptions of people. This article extends prior research by investigating and comparing perceptions amongst different individual taxpayers. It is specifically aimed to determine individual South African taxpayers’ perceptions regarding general tax-related, tax evasion and tax compliance issues. A number of demographic, economic or other factors that might influence respondents’ perceptions regarding these issues were also investigated. This research builds upon previous research, utilising insights from several disciplines and various theoretical perspectives. The data was collected from a sample of 260 individual South African taxpayers by means of face-to-face interviews, based on a questionnaire, compiled from an extensive literature review. The scope of the study was limited as it focused only on natural taxpayers within the Tshwane metropolitan area (which includes Pretoria, the capital city of South Africa) in Gauteng, as the purpose was not to generalise conclusions to the entire South African population. It was found that tax compliance may depend upon several factors, other than deterrence, and that the perceptions of individual South African taxpayers are likely to be influenced by these factors. One of the main recommendations of the study is the need for comprehensive, widely based communication and education of taxpayers and potential taxpayers by the South African Revenue Service.