Role of Tax-Knowledge in Building Tax-Intention: An application on TAM Model

Abstract

This study explores the role of Tax-knowledge on building affirmative attitude towards taxes, by incorporating the Technology acceptance model (TAM). TAM model established the fact that intention can be developed if attitude is foster by developing perceived usefulness and perceived ease of use in user mind, also it indicates the role if external factor in developing perceived ese of use and perceived usefulness. This article based on the fact narrated above uses Tax-knowledge as an external factor. Tax-knowledge is being observed by further 3 dimensions. General Knowledge, Legal Knowledge and Technical Knowledge. The data for this research article was collected from the owners of small business firms operational in Punjab, Multan region. Data was collected using questionnaire/survey method and was analysed using PLS-Smart. The results showed that general knowledge does not have impact on tax-compliance intention. Whereas, legal knowledge and technical knowledge demonstrate higher B-coefficients for both direct and indirect relationship. Thus, this study concludes that by enhancing legal and technical knowledge regarding taxes, individual’s tax-compliance intention can be magnified.

The Effect of Taxpayer Understanding and Use of E-Filing on Taxpayer Compliance With Tax Volunteer as Moderating Variable

“…In addition to TPB, the use of e-filing is also supported by the TAM theory (Zaidi et al, 2017). Tax authorities can use technology acceptance model so that they can improve the taxation compliance by giving taxpayers knowledge regarding the benefits of reduced cost and ease of use (Night & Bananuka, 2020), (Younus et al, 2021). Taxpayers have the perception that e-filing can effectively accelerate and with more accurate results in the reporting process tax return (perceived usefulness), and taxpayers are likely to have the perception that their ease of use of e-filing can be accessed anywhere and anytime in the reporting tax return (perceived ease of use).…”