Abstract

This study investigates the influence of tax-related knowledge, system complexity, fairness perception, perceived behavioral control, subjective norms, instrumental attitude, and affective attitude on behavior as compliant among taxpayers in Peshawar, Khyber Pakhtunkhwa, Pakistan. This study adopts a deductive approach, constructing a pre-empirical framework grounded on theory of distributive justice and that of planned behavior. Data were collected through a questionnaire designed for taxpayers, and Partial Least Squares (PLS) analysis was conducted to examine the hypothesis. Results indicate that compliant behavior is significantly influenced by complexity of the tax system and taxpayer perception of fairness. Enhancing taxpayer knowledge and reducing system complexity are suggested to improve compliance and foster a more compliant tax environment. These findings underscore the importance of initiatives aimed at enhancing taxpayer understanding and simplifying tax systems to promote compliance.

Keywords: Tax knowledge, system complexity, fairness perception, compliance behavior.