Further improving our understanding of the tax awareness, tax literacy and tax morale of young adults

Abstract

Developed countries have for some years seen a policy direction of travel towards more individual responsibility to engage with taxpaying obligations, at the same time as more limited state support and assistance being provided excepting where taxpayers are motivated to self-serve online provision. This paper argues that a greater focus on tax education generally is needed given this change of approach to compliance, and particularly amongst younger people as they prepare to engage with the tax system beyond consumption taxation payment, to build a better platform for compliance improvement efforts in the future that are better suited to this greater focus on individual responsibility for compliance. As such, the need to better understand the most effective way to do educate young people about the tax system is also required. This paper seeks to contribute to the development of this understanding. It presents quantitative research into socio-demographic influences and the impact tax tuition may have on young adults’ tax morale. The results of a two-staged survey show gender, tax tuition, and employment experience significantly influence tax morale. The contribution to the literature on tax morale and tax literacy is showing, through regression analysis, the effect of tax tuition on tax morale is negatively influenced by employment experience.