An Investigation On The Influence Of Tax Knowledge On Tax Compliance

Abstract 

This research seeks to investigate the influence of tax knowledge on tax influence using Zimtile (Pvt) Ltd as a case study. Some researchers were of the view that tax knowledge has a significant positive influence on the tax compliance level of a company. However, others argued that there is a negative association between tax knowledge and tax compliance. Zimtile (Pvt) Limited failed to obtain a tax clearance certificate on time during the period between from 2014-2016. Therefore this gave the researcher room to conduct an investigation on the influence of tax knowledge on tax compliance. In conducting this research, the researcher used a descriptive case study that was both qualitative and quantitative. Data was collected through interviews from four interviewees and through questionnaires from thirty-two respondents. Data that was collected from the research showed that tax knowledge has a strong positive impact on tax compliance. The researcher also concluded that there are other factors such as complexity of the tax system and awareness of tax offences and penalties that affect tax compliance. Therefore, the researcher recommends companies to always aim at equipping their employees with tax knowledge so as to enhance their tax compliance level.