Beyond the Myths: Misinformation and Its Effect on Taxpayer Behaviour

Abstract

The study investigates the impact of misinformation on taxpayers' tax compliance behaviour, aiming to uncover the psychological and economic repercussions on citizens. Employing a qualitative research methodology, the study conducted interviews with eight participants, followed by a thematic analysis to identify prevailing themes in taxpayer responses to misinformation. The findings reveal that misinformation significantly influences taxpayer behaviour, leading to stress, mistrust of tax authorities, and subsequent non-compliance. Analysis of the interview data highlighted the role of digital platforms in spreading misinformation, the susceptibility of newer businesses and younger taxpayers, and the erosion of trust and tax morale as critical factors affecting compliance behaviour. The study underlines the broader implications of misinformation on the tax system's integrity and the fiscal relationship between taxpayers and authorities, calling for strategies to enhance information dissemination and taxpayer education to bolster compliance and trust.