Abstract
Tax compliance is an ongoing challenge for policymakers worldwide. As the tax is the most important financial resource for governments to finance their public expenditures. Especially, in countries such as Palestine due to a lack of natural resources. So tax evasion and avoidance have a significant negative impact on the government to meet their obligations, as the public budget of Palestine is largely dependent on tax revenues that constitute 90% of the public budget going forward with its obligations to society. Good tax administration and efficient tax collection is a prerequisite for securing adequate tax returns. The current study focuses on identifying the role of tax knowledge and tax ethics on tax compliance among Palestinian taxpayers. The current study is designed on the basis of a review of previous studies on tax knowledge and ethics with tax compliance and its impact on tax revenues. Tax non-compliance is one of the tax and financial phenomena that studies and statistics confirm are common in all countries of the world, but in proportions that differ from one country to another, and from a period of time to another.
Highlights
Tax revenue is one of the oldest ways to provide the funds needed for government sustainability, and most economies rely on taxes to meet spending needs (Alkhatib et al, 2019; Alshrouf, 2019; Kira, 2017)
Kasper et al (2013) claims that tax sophistication produces a negative paradigm toward current tax law, which reduces the desire for tax compliance, and the relationship between both tax knowledge and tax compliance is positive
The challenge of non-compliance with taxation has diminished the government's ability to maximize the generation of projected tax revenues to finance development projects
Summary
Tax revenue is one of the oldest ways to provide the funds needed for government sustainability, and most economies rely on taxes to meet spending needs (Alkhatib et al, 2019; Alshrouf, 2019; Kira, 2017). As taxes are an important source of income for the state, they increase public treasury revenues. Many researchers believe that there are several reasons that encourage tax compliance, including reasons that go back to the taxpayer himself and are reflected in the strength of the moral level and tax knowledge.
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