TAX ATTITUDE AND PERCEPTION OF FAIRNESS AS PREDICTORS OF TAX COMPLIANCE AMONG SME BUSINESS OWNERS: THE MEDIATING ROLE OF TAX KNOWLEDGE

Abstract

In this research, the role of tax attitude and perception of fairness in tax compliance among SME owners was examined. Tax knowledge was investigated as a mediator between tax attitude and compliance as well as perception of fairness and tax compliance respectively. 123 SME owners were administered online questionnaire to obtain relevant data for hypotheses testing. The study aimed at identifying significant predictors of tax compliance behaviour, while assessing the role of tax knowledge as a mediator. Findings indicated that tax attitude was positively related with tax compliance, serving as a significant predictor of tax compliance among SME owners. Although perception of tax fairness was positively correlated with tax compliance, it was not a significant predictor of tax compliance. Tax knowledge mediated the impact of tax attitude on tax compliance. However, tax knowledge did not mediate the relationship between perception of fairness and tax compliance.   Keywords: Tax Attitude, Fairness Perception Tax Knowledge SME Business Owners