Factors informing tax compliance: A meta-analytical study

Abstract

Background: Taxpayer compliance significantly impacts a nation’s ability to generate revenue for socioeconomic development. A need exists for a comprehensive analysis of emergent factors influencing compliance behaviour, as current research on tax noncompliance is limited. Aim: This study seeks to determine the primary factors influencing taxpayer compliance behaviour through a critical examination of existing primary empirical studies. Setting: The analysis draws from 45 primary international studies conducted between 2015 and 2020. Method: Employing a quantitative approach, the study utilises a meta-analysis, guided by the PRISMA method, to systematically assess relationships within relevant literature related to tax noncompliance. Results: Findings emphasise the importance of robust tax administration systems and public trust in governmental institutions as key drivers of taxpayer compliance. Conversely, weak government accountability contributes to tax noncompliance behaviours. Conclusion: The study concludes that fostering both effective tax administration and public trust in the country’s governance is critical in promoting voluntary tax compliance. Contribution: This research provides policymakers with evidence-based insights to enhance tax compliance, bolster revenue generation and support national development initiatives

Keywords

• tax compliance factors
• meta-analysis
• tax gap
• theory of planned behaviour
• taxpayer behaviour