How gender and level of education influence in compliance behavior among small business sector in Sri Lanka

Abstract

The main objective of the study is to explore and analyze the demographic factors such as gender and level of education influencing on the compliance behavior of taxpayers from small business earners in SriLanka. This area of research did not appear to have been previously studies in Sri-Lanka context and in this respect the research represent an original contribution while research have been conducted in Sri-Lanka. Tax compliance means true reporting of all tax bases, correct computation of the tax liability and timely filling and paying correct amount of tax on dues failing which may cause serious damage to total tax revenue loss and create problems of the proper functioning of the public sector and threatening its capacity to finance the public expenses. The questionnaires systematically designed with thirteen items of statements regarding the opinion on compliance behavior, consisting five points Likert scale measurement were distributed directly to individuals small business entrepreneurs to collect data to carry out this study. The result of the study tries to generalize how the tax compliance behavior influences in the tax system in Sri-Lanka. The independence t-test and chiSquare were used to test hypothesis to draw conclusion that the gender and the level of education of respondents were independents in tax compliance behavior of income taxpayers.