1 CHAPTER 1: INTRODUCTION 1.0 Chapter ... - DSpace@UM

dimension. The study revealed that these dimensions of tax fairness were related todistributive theory while Christensen & Weihrich (1996) researched tax fairness undersocial justice theory and role theory. Both studies identified the 5 dimensions as similarto Gerbing (1988) in their respective studies. Only laws and policy perceived as fair bythe public will enhance an effective tax system. Tax evasion and noncompliance is seenas a reaction to restore equity. To understand the motivation for tax evasion the study bySpicer & Becker (1980) on 57 university students showed evasion was highest when thestudents were told that their tax rate was higher than any average taxpayer and evasionwas lowest when told that their tax rate was the lowest among average taxpayers Taxevasion was dependent on tax rate, public expenditure and peer reporting.Another important aspect that taxpayers’ argue is the fair terms of trade between hispublic consumption and the government’s provision of public goods. If the goods andamount they receive is greater than their payment then compliance will increase whichmeans that individuals pay taxes to get benefits even though they know that chances ofdetention is slim. Murphy (2005) mentioned that theories based two models; thedeterrence model and the accommodative model to analyze the compliance behaviour oftaxpayers. The accommodative model is actually moral and obligations that can beconsidered when managing noncompliance. The study suggested that using both ofdeterrence, punishment and attitudes and moral obligations will help combatnoncompliance. Next paragraph is about tax fairness framed under the theories below.2.2.1 Distributive Justice23