3.2.1. Tax compliance and tax consciousness

In this stage, the hypotheses H1 and H2 will be assessed together and the tax compliance and tax consciousness relationship will be observed.

when there is a low level of tax compliance, strict policies to prevent tax evasion are not enough, but an effort to create a social norm is important [21]. Cummings et al. also stated that inspection bodies are effective on social norms about tax compliance, and these norms are dependent on the tax regime and the state's willingness to satisfy citizens' demands [23]. On the other hand, Feld and Larsen indicated that social norms and deterrence should be used

Somewhat Agree

Keystones of Performing a Proper Tax Policy Design for Tax Compliance: Does Perception of Tax Compliance…

Total Frequency 46 88 142 276

The hypothesis H3 denotes the relationship between tax compliance and making declarations on time, which is the first duty in tax responsibilities. The crossexamination here is making declarations on time and being aware of the importance of taxes in national development.

mid-sized magnitude. As it may be seen in Table 7, 47.6% of participants believe in the existence of this relationship. Similar to the interesting result of the previous test, 8% of the participants agreed with the timely submission of declarations, while they did not think taxes

Lewis et al. observed that level of inspections affects tax compliance, and high inspection rates on tax evasion increased the voluntary tax compliance [25]. However, in Kastlunger et al. (2009), it was seen that inspections without increasing and/or strengthening tax compliance

As the sensitivity to pay tax debts, as indicated in H5, is related to being a good citizen and the importance of taxes in national development, Tables 8 and 9 may be considered together. The

) numbers indicate a positive relationship with

A compliant tax payer gained this trait as they think paying taxes helps national development

http://dx.doi.org/10.5772/intechopen.70816

Disagree Somewhat Agree

% 5.8% 3.3% 2.5% 11.6%

% 6.5% 19.6% 45.3% 71.4%

% 16.7% 31.9% 51.4% 100.0%

Frequency 12 25 10 47 % 4.3% 9.1% 3.6% 17.0%

Disagree Frequency 16 9 7 32

Agree Frequency 18 54 125 197

Total

203

Agree

) numbers in both tests show that there is a

simultaneously [24].

Being a tax payer who shows the required compliance means being a good citizen

χ<sup>2</sup> = 57.594 Level of significance (P) = 0.000

Table 6. Tax compliance-tax consciousness relationship.

Source: Author's identification.

Level of significance (P) and chi-squared (χ<sup>2</sup>

have a relationship with the national development.

lead tax payers to invent new ways to evade taxes [26].

levels of significance (P) and chi-squared (χ<sup>2</sup>

For tax compliance, the financial, economic, and social meaning of taxes must be understood by the tax payers. Leder et al. reported that information campaigns about taxes financing public goods and services increase consciousness of tax payers about the importance of taxes, strengthen their perceptions toward financial change, and increase their compliance levels [21]. Likewise, Karakostas and Zizzo also stated that especially implementations like advertisements support the concept of norm creation toward tax compliance [22].

Significance level (P) and chi-squared (χ<sup>2</sup> ) numbers indicate that the relationship is positive with a mid-sized magnitude. As Table 6 shows, 45.3% of the participants agreed with both statements. An interesting result arose about the relationship between "being a good citizen" and "contributing to national development." In total, 6.5% of the participants agreed with being a good citizen, but disagreed with contributing to national development. Considering that participants were university students, it may be argued that even though the result covers a few people, the participants have awareness of the liability of the tax payer in terms of being a good citizen, but they do not completely grasp the economic effects of paying taxes and/or they do not think the collected taxes are used for the development.
