What can we learn about tax compliance?

All citizens who make an income have a duty to pay taxes. The primary objective of the government is to create obedience among taxpayers who follow the tax laws, regardless of the motivations behind compliance. According to Kasipillai and Abdul-Jabbar (2006), and Roth and Scholz (1989), tax compliance is commonly understood as to accurately report tax liability at the time the return is submitted and filing all required tax returns within the allocated time. According to the definition given above, maintaining records, completing tax returns on time and accurately, and paying all outstanding taxes are three crucial components of compliance (Sour, 2004). Three criteria can be used to assess tax compliance; (1) meeting deadlines; (2) accurately reporting tax liability and (3) adhering to tax laws and regulations. Underreporting and overreporting taxes are considered non-compliance as it breaches tax duties (Sour, 2004).