Tax education and taxpayer enculturation: Initiatives for South Africa

Abstract

The South African Revenue Service acknowledges that it faces various risks, such as revenue collection uncertainty, unfavourable public perceptions and low compliance. Despite South Africa’s sophisticated taxation system, improvements to taxpayer education may provide the most comprehensive opportunity to allay these risks. This study examined taxpayer education strategies utilised in foreign countries to identify opportunities for initiatives that could be used to foster compliance-enhancing behaviour. In addition, the South African taxation infrastructure was assessed to determine its ability to integrate foreign compliance strategies. Three taxpayer education themes of enculturation, education and awareness were identified. Using a qualitative research methodology, 15 interviews were conducted with respondents who could provide knowledgeable opinions on the issues raised. The respondents confirmed the importance of these themes and the need to introduce the three tax education initiatives. This study recommends that taxpaying values be enculturated and normalised among future taxpayers before they leave school, that taxpaying aptitude, preparedness and confidence be developed by revising the financial, maths and tax literacy elements introduced throughout the school curriculum, as well as piloting an informative Taxpayers’ Week during Tax Season. The study’s contribution is unique in differentiating taxpaying skill development from taxpayer enculturation within school education. Practical direction is given to South African authorities concerning which tax education initiatives from foreign countries could be adapted and adopted. This study proposes novel initiatives and provides suggestions to optimise the existing taxpayer education and awareness efforts. Lastly, it contributes to the limited tax education and tax compliance literature.