Cultural Openness, Patriotism, and Intention as Determinant Factors of Tax Compliance: A Systematic Review

Abstract

The aim of this review is to analyze the current state of the literature on tax compliance (TC) based on three determinants, namely: cultural openness, patriotism and intention to comply, then to make suggestions for future research. A systematic literature review from identified online academic databases was used to conduct this research. A total of 45 conceptual and empirical papers relating to the designed relationships were analyzed. In light of the review of the existing literature, this systematic review suggests that the influence of patriotism, cultural openness and intention on actual behavior of individual taxpayers still require more empirical analyses using alternative research approaches, alternative theories, and a comprehensive population. Further, prior TC research has used several competing components and similar frameworks under theory of planned behavior which extended to reasoned action theory. Although these frameworks have provided beneficial insights into our understanding of compliance and intention behavior in general, empirical evidence from this stream of research has not been convincing or comprehensive. This article seeks to persuade authorities to recognize that low TC occurs when a gap exists between authorities and taxpayers. Instead of relying solely on deterrence tactics, they should devise policy measures to close that gap by concentrating on taxpayer attitudes and values. This is the first systematic review on individual tax compliance using the three determinants.