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

include tax auditors, tax educators and tax practitioners who were different in theirperceptions towards tax fairness but the dimension were tested using factor analysis andwere able to conclude that different perceptions can improve information gathering fromthe taxpayer and the tax authority should take this into considerations.Richardson (2006) studied tax fairness as one of the various independent variables in aninternational cross country investigation. The study showed non economic determinantssuch as income source, agricultural income, democracy, culture, fairness, religion, legalsystem, regional developing country, income level (separated into low income level andhigh income level) and tax rate showed strongest effect on tax evasion.Hite & Roberts (1992) tested the association between tax reforms and public perceptionsof tax fairness ultimately testing to see the compliant behaviour of the residents of theUS. However their reports showed that the tax reforms did not improve their perceptionsof fairness or the simplification of the tax system. In another study by Gilligan &Richardson (2005), Gerbing’s fairness dimensions were tested as a comparative studybetween two jurisdictions i.e. Australia and Hong Kong. Five dimensions of tax fairnesswere found but the overall conclusion was, there are no universal perceptions of taxfairness prevailing cross culturally.Finally Richardson (2006) tested Gerbing’s (1988) dimensions once more in isolation onHong Kong taxpayers and found able to include one more dimensions i.e. middle incomeearners share/burden of tax as the sixth dimension and used regression to understandtaxpayers perceptions of tax fairness, however not all the dimensions he factored showed33