Income Tax Fairness and the Taxpayers’ Compliance in Jordan

Abstract

The objective of this study is to know how income taxpayers perceive the Jordanian income tax fairness and to determine the degree of income taxpayers’ compliance in Jordan. Moreover, the study aims to investigate the effect of income tax fairness on taxpayers’ compliance degree in Jordan. An empirical survey using self‐administered questionnaire has been carried out to achieve the objectives of this study. The survey included 275 respondents among income taxpayers in Jordan, but just 246 copies were received. Based on the revision of the literature framework, and in order to achieve the above‐mentioned objectives, eight hypotheses were developed and tested using t‐test through the methods of “one sample t‐test”, and “simple linear regression”. The study reveals that income taxpayers in Jordan perceive the Jordanian income tax as fair. The study also reveals that there is a high degree of income taxpayers’ compliance in Jordan. Moreover, the study concludes that income tax fairness affects income taxpayers’ compliance, but tax fairness alone doesn’t interpret all the change that occurs in taxpayers’ compliance issue.

Citation

Khasawneh, A., Ibrahim Obeidat, M. and Abdullah Al‐Momani, M. (2008), "Income Tax Fairness and the Taxpayers’ Compliance in Jordan", Journal of Economic and Administrative Sciences, Vol. 24 No. 1, pp. 15-39. https://doi.org/10.1108/10264116200800002