A review of the impact of tax morale on tax compliance behaviour

Abstract

The study reviews the role of tax morale in addressing the issue of tax compliance as a reaction to the classical tax evasion model that attributes the reason to deterrent policies. The paper also reviews other factors such as social and psychological factors, affecting tax compliance. It was observed that most of the studies employed the survey research design distributing questionnaires to employees as well as self-employed taxpayers. The need to provide tax payer services particularly during the filing stage, simplifies the tax paying procedure, creates awareness and promotes a fair tax system was also canvassed. The study recommends that the tax Authorities should develop fiscal policies that will foster tax morale to shift emphasis from deterrent policies and also recommends further research efforts to enable better understanding of the causes and consequences of tax morale especially from a developing country’s perspective.