4. Discussion

chi-squared (χ<sup>2</sup>

Source. Author's calculation.

on time

206 Taxes and Taxation Trends

sanctions [30].

have not developed it yet.

A compliant tax payer makes their declaration

χ<sup>2</sup> = 19.936 Level of significance (P) = 0.001

Table 10. Tax compliance and trusting the tax administration relationship 1.

level (P) and chi-squared (χ<sup>2</sup>

) numbers show that there is a positive relationship, while it has a small

A compliant tax payer gained this trait because the tax administration provided correct Total

Agree

and fast service

Disagree Frequency 10 4 5 19

Agree Frequency 65 65 100 230

Disagree Somewhat Agree

% 3.5% 1.4% 1.7% 6.6%

% 22.6% 22.6% 34.8% 80.1%

% 31.4% 30.7% 38.0% 100.0%

Frequency 15 19 4 38 % 5.2% 6.6% 1.4% 13.2%

magnitude. In total, 34.8% of the participants agreed with both statements. However, even though 22.6% agreed with the importance of submitting declarations on time, they did not agree that the tax administration works fast and correctly. It may be that students who have not experienced the tax implementation are missing trust in the tax administration or they

Somewhat Agree

Total Frequency 90 88 109 287

Kogler et al. reported that the highest tax compliance and the lowest tax evasion are experienced in countries where the authority is seen trusted and effective by citizens. They argued that the state should win the citizens' trust with generally fair implementations and serviceoriented behavior [20]. Verboon and Dijke stated the importance of the authorities' fair treatment of citizens in increasing tax compliance, therefore increasing the effectiveness of their

When the hypotheses H6 and H7 are considered together, as shown in Table 11, significance

total, 28.3% of the participants agreed with both statements. However, 15.7% of the participants disagreed with both statements. Both statements test the trust in the tax administration, and the number of people who chose to disagree is noteworthy. Leder et al. (2010) stated that if the tax administration shows transparency in disclosing final data about financial transition, it will be able to gain tax payers' trust, which is extremely important for tax compliance [21]. Litina and Palivos argued that individuals (tax payers) who believe that the tax administration

is honest will have very high probability to respond to sanctions positively [31].

) numbers show a positive relationship with high magnitude. In

This study tests tax compliance in terms of university students, who have not yet completely experienced taxpaying implementations. The perception of tax compliance was tested on students who are expected to show high consciousness about taxes because of their qualifications and the departments they study in.

Findings of the study were listed below:

• In terms of tax consciousness and tax compliance, it was seen that students agree that paying taxes completes the concept of being a good citizen.

On the contrary, Leder et al. in which mentioned that importance of information campaigns about taxes financing public goods and services increasing the compliance level, students do not agree with the importance of taxes in national development [21]. This means that convincing information about taxes should be made.

• In terms of tax compliance and tax payer duties, students perceive the sensitivity submitting declarations on time and showing care in paying tax debts.

Feld and Larsen (2012) indicated that social norms and deterrence should be applied simultaneously and Lewis et al. (2009) observed that high inspection rates on tax evasion increase the voluntary tax compliance, and students realizing this as a civic duty tax obligation should be inspected and audited [24, 25]. Besides that, it should be noted that on the basis of the findings of the study, students see taxes as a compulsory requirement, rather than a way for being a "good citizen."

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

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209

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• The situation is complicated in the relationship of the tax administration and tax compliance.

Thoughts in Cummings et al. in which mentioned that administration's quality affecting tax compliance, Kogler et al. in which reported that how trusted and effective tax authority could make possible an higher tax compliance level in many countries and Verboon and Dijke in which stated the importance of the authorities' fair treatment of citizens in increasing tax compliance are similar [20, 23, 30]. On the contrary, with these workings, in this paper, students have negative perceptions on the tax administration being transparent, correct, and trustable. They think the success in tax compliance is caused by tax payers themselves, rather than by the tax administration.

On the contrary, Litina and Palivos argued that believing in the honesty of the tax administration makes possible that the sanctions are effective, and Djawadi and Fahr mentioned that how the transparency about public expenditures effects the tax compliance in a positive way; another finding in this stage is that the tax administration does not disclose the data on where taxes are spent according to the students [32].
