The Impact of Tax Knowledge on the Perceptions of Tax Fairness and Attitudes Towards Compliance

Positive attitudes towards factors such as the perceived fairness of the tax system are considered to play an important role in the level of tax compliance within a country (Strumpel, 1968). The tax literature indicates that not only knowledge but an understanding of the tax system may have an effect on taxpayers' perceptions of fairness and attitudes towards compliance. This study examines the linkages between an increase in tax knowledge on perceptions of fairness and tax compliance attitudes by using students enrolled in an introductory taxation course in a New Zealand tertiary institution. Contrary to prior research, the results indicated that an increase in tax knowledge did not have a significant impact on perceptions of fairness and tax compliance attitudes.