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

with similar another person or people (horizontal equity) or else it is tax burden of agroup compared with that of another group or others (vertical equity) (Wenzel 2002). Ifthe tax burden is not distributed evenly due to the different categories of people thenfairness is questionable. It is to be noted that disadvantageous inequity increase evasionand advantageous in equity decreases evasion, as mentioned by Spicer & Becker (1980).Furthermore, the distribution of tax burden among all in the society is at large, referred asmacro justice, that measures whether taxes are paid evenly by all society groups as statedby Brickman, Folger, Goode & Schul (1981) as quoted in Wenzel (2002).2.4.2 Dimension 2 – Exchange with the GovernmentAs stated by Roberts (1994) that taxation is actually similar to trading with thegovernment. Therefore in return for the tax payment what quality and kind of publicservices do they get? To understand the relationship between taxpayer and thegovernment research is focused on the perceived tax fairness and the compliantbehaviour. The degree of satisfaction the public has with the government will enhance taxcompliant behaviour. Positive actions by the state are expected to bring about positiveattitudes and commitment of taxpayers’ to the tax system and ultimately tax compliance,as mentioned by Torgler (2001a).Porcano (1992) analyzed the relationship between the criteria used to evaluate a taxsystem and the perception of fairness about the tax provisions. He compared between twogroups i.e. tax preparers and taxpayers and found that taxpayers perceive the system to be35