TAX STRUCTURE AND COMPLIANCE BEHAVIOUR: A REVIEW OF FACTORS AND DIMENSIONS

Abstract

Abstract: The Tax Structure of any country plays a pivotal role in enhancing compliance behaviour among taxpayers. The structural components of taxation consist of deterrence measures, inherent complexity of the system, statutory tax rates, and the costs associated with compliance. Extant literature has contributed to an immense extent in attempting to strike a clear association between these factors of tax structure, and the compliance behaviour of taxpayers. However, there have been a wide variety of results in these studies, which offer a plethora of options for policy makers to reach out to an ideal tax base. At the outset, it becomes imperative to understand the dimensions of these components as perceived by past studies. The present study aims to bring out a comprehensive synthesis of the outcomes from various studies conducted in assessing association between selected components of tax structure and tax compliance behaviour. The study also outlines some possible solutions, as elicited from the extant literature, to administrative authorities in framing suitable provisions to maximize positive attitudes towards taxation and consequent compliance behaviour.