Determinants of Tax Compliance: a Systematic Review

This paper has investigated the empirical research by exploring the factors of compliance decision. Tax compliance is important for governments since tax is the essential source of their revenue in developing as well as developed countries. Nowadays the roles of governments have been increasing and because of this they must have to collect more tax revenues. But, they can’t do this because of tax non compliance. Literatures have indicated that the tax compliance decision of taxpayers will be affected by a number of factors like penalty, tax system fairness, tax rate, probability of detection and being audited, etc. Itargues that the tax authorities shall have to keep the tax system to be fair, maintain appropriate levels of penalty, rather than merely relying on carrot and stick approach the government and the tax administrative body should excel on responsible citizens’ approach.