Investigating the Effect of Policymaking in terms of Tax Governance and Awareness of the Tax Revenue Allocation on the Level of Voluntary Tax Compliance.

One of the major goals of tax administration is to enhance the voluntary compliance of taxpayers. Tax compliance behavior is influenced by various factors. This article investi- gates the influence of taxpayers' awareness of how the government allocates tax revenues (budget spending) and the effect of allowing taxpayers to choose how to allocate a portion of their paid taxes, on tax compliance behavior. For this research, 450 taxpayers were selected from different provinces across the country using random sampling method. A questionnaire was used to collect data, which was then analyzed by the ordered logistic regression approach. The results showed the variables of taxpayers' awareness of the allocation of tax revenues by the government, the ability of taxpayers to allocate a portion of their taxes, the taxpayer's annual income, and the level of education have a positive and significant effect on the level of tax compliance. Moreover, when taxpayers are more aware of the government's allocation of tax revenues, they are more likely to choose the highest level of compliance. Similarly, allowing taxpayers to choose how to allocate a portion of their paid taxes also increases the probability of high compliance. Additionally, higher income and educational levels also lead to a greater probability of taxpayers being highly compliant. [ABSTRACT FROM AUTHOR]

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