Factors Affecting Voluntary Tax Compliance of Individual Taxpayers in Sri Lanka

Abstract

Voluntary tax compliance is crucial for sustainable public revenue and economic stability, but it is impacted by various factors beyond enforcement. This study analyses the slippery slope framework, theory of planned behavior, tax fairness theory, and economic deterrence theory to investigate the influence of trust, authority, fairness, deterrence, and, most importantly, personal values, an overlooked aspect of Sri Lanka's tax compliance research. The study used VOSviewer software to analyze the relationships and gaps identified in literature. Research indicates that, in addition to economic incentives and enforcement, human values like ethics, social duty, and perceptions of justice substantially influence compliance behavior. Resolving compliance issues demands rules that promote transparency and equity while cultivating a tax culture consistent with the values of society. This research introduces personal values into the subject of tax compliance, offering a novel framework for policymakers to foster voluntary compliance, minimizing dependence enforcement, and enhancing long-term tax adherence in Sri Lanka.