An exploratory study of the tax fairness dimensions of individual taxpayers in South Africa

Abstract

Background: The fairness of the tax burden is a longstanding topic for research studies. People’s perceptions around the fairness of the tax burden also frequently emerge from these studies. More recent studies support a notion that the phenomenon of tax fairness is multidimensional and the following five dimensions are well recognised in the literature: exchange with government; tax rate structure; self-interest; special provisions; and general provisions. Each one of these dimensions comprise various variables, all of which may have an influence on the tax fairness perceptions of taxpayers. Main purpose: The main purpose of this study is to empirically explore the multidimensional variables that may influence individual taxpayers’ perceptions of the fairness of the tax burden in South Africa. Method: This study adopts a pragmatic style of thinking, it is exploratory in nature and takes on a deductive reasoning stance. The research in the study is cross-sectional and the method is mainly qualitative, making use of a thematic analysis as research strategy. The data underpinning the research can be classified as secondary data and comprise of both quantitative and qualitative data. The data were analysed thematically and the results are presented statistically, specifically in the format of descriptive statistics. Results: The results from the data analysis in this study indicate that there are no statistically significant relationships between the five dimensions as stated above. However, the most profound dimension identified was that of the tax rate structure. Conclusion: This study attempts to provide as an add to the literature, providing a stepping stone for future studies which may assist tax policy-makers to understand the present perceptions of individual taxpayers on the fairness of the tax burden in South Africa.