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

analyzed in Model 3a and 3b to know if significant difference could be found. Majorityof previous research basically used taxpayers’ general education levels as an approach tomeasure the impact of education on tax compliance attitudes. Levanthal (1976), Jackson& Milliron (1986), Christensen et al, (1994) all found positive association betweeneducation and tax compliance, whereas Song & Yarbrough (1978) found a negativerelationship. This can be explained whereby increased knowledge on tax matters inparticular can lead to tax noncompliance and evasion. Chan et al. (2000) reportededucation has an indirect positive link with taxpayer compliance via moral developments.People with more education are likely to have high level of moral development.Kassipillai (1996) postulated that tax compliance can be improved with increased taxknowledge of the taxpayer through formal education. In most compliance studieseducation was a mediating variable between tax fairness and tax compliance, e.g. Harris,(1989) studied two groups of students, one exposed to different types of tax educationand the other not. There was significant difference on perceptions of fairness between thetwo groups; the group that was exposed to tax knowledge took advantage to understandthe complexity of the system and perceive it unfair. Based on the regression results testedin Model 2 therefore H4 is accepted in this study.Singh (2003) has mentioned that age has been considered as one important demographicfactor in tax compliance research. The youngest subjects of most US studies are just 18only. Researchers include these young aged taxpayers’ as a factor in explaining taxcompliance behaviour. Most studies have shown a positive link between age and taxcompliance with some exceptions. Research on demographic factors done by (Jackson &74