Abstract
The role of the government is to provide social and economic services to the citizens of South Africa. In an endeavour to achieve this goal, revenues have to be raised via taxes. The government has to trust the taxpayers to pay their taxes fully, timely and honestly. In return, the government has to be accountable to the citizens. The relationship between the two parties is based on trust. Tax evasion may increase where accountability is low.
Using an empirical study methodology, an in depth literature review and quantitative data analysis, the study aimed to dissect the nexus between the taxpayer's perceptions on state spending and his or her tax attitudes.
The literature review on the qualitative part revealed that there is a continuum of factors contributing to tax compliance (voluntary or enforced). The perceptions of taxpayers and their trust in the government was found to have an effect on the attitudes of taxpayers.
The quantitative study found little correlation between the perceptions of taxpayers on state spending and tax compliance. The causal relationship that exists was merely a coincidence.
M.Com.