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

with education. Distributive justice by Levanthal (1976) stated that individual knowledgeon the concept of justice is learned through education. Findings by Christensen et al.(1994) showed that tax education has proven significant to taxpayers that information andclarification on tax matters will help to judge the system as fair. According to Roberts(1994) and Wartick (1994) educating taxpayers’ the tax system or presenting justificationfor certain tax provision enhances fairness perceptions which will ultimately influencetax compliance levels. There are only a few studies that used education to mediate thecompliance rate of taxpayers. But one interesting point discovered by Jackson & Milliron(1986) is that the impact can be in two ways; one education will help the people tobecome more knowledgeable about the tax system that will make them understand theirobligations towards their country and government and appreciate the benefits receivedfrom the government but the other one would be they misuse the knowledge to becomemore aware of the tax loopholes and engage in tax evasion activities.Song and Yarbrough (1978) studied on tax ethics that played a key role in influencingtaxpayers’ complaint behaviour. The results on level of education showed a strongcorrelation with R² is 26%. A point to note here, in taxation research since there are toomany determinants to tax compliance when only variables coming from the numerousfactors are put together for test, then a bigger part of the variance can be explained.According to Fallan (1999), the pre and post test on male and female students fromdifferent areas of study has shown that exposure to better tax knowledge has a significantinfluence towards the fairness of the tax system. Therefore, tax knowledge helps todevelop a fairer attitude towards tax system and that will enhance compliance. But in this44