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

Table 4.8: Correlations Matrix 1 - Tax Fairness Dimensions and Tax ComplianceTComp 1TCompGenFairnessGenF + ExchTstructureTrate + SpecGenFairness(GenF + Exch)0.130** 1Tstructure(Trate + Spec)0.25 0.117 1SelfInt -0.308** 0.009 0.189 1SelfInt*significant at p< 0.05 **Abbreviation: TComp= tax compliance, GenFairness= general fairness plus exchange,SelfInt = self interest, Tstructure = tax rate plus special provisionThe value of coefficient r for Dimension 1 is considered in the small range however itshowed that general fairness and exchange has influenced taxpayers’ attitudes towardscompliance. This result is consistent with findings by (Hite & Roberts1992) which statedthat perceptions of fairness are positively related to expectations that if the tax system isfair taxpayers’ will comply. This also provides further explanations to understand thebehaviour of individuals who belief that if the tax system is unfair then it is justified ifthere is under reporting or having dishonest attitudes. In additions the results supportedGerbing’s (1988) findings that general fairness and distribution of tax burden is adimension of tax fairness. Based on the correlation results, the research question isanswered partially providing preliminary support for hypothesis H1. Thus, no conclusioncould be drawn using correlations results alone, H1 has to be tested further by performingOLS multiple regression analysis and the results are reported in Table 4.9(Model 1).Table4.8A presents correlations Matrix 2 results between demographic factors (in conjunctionwith the tax fairness dimensions) with tax compliance.66