Abstract:
Research into the impact of demographic variables – including gender, age, formal education and tax knowledge – on tax
compliance has produced mixed results. This article reports on an online between-subjects experiment conducted with
individuals owning/managing small businesses to determine the impact of such variables on tax compliance behaviour in South
Africa, specifically when there are changes in the VAT rate.
The study finds that before there are changes in the VAT rate, gender, education and tax knowledge have an effect on tax
compliance decisions. By way of contrast, when there is a change in the VAT rate (specifically an increase), the only
demographic variable that is found to have a significant effect on tax compliance is education.
The results of the study are both confirmatory and innovative and provide useful further evidence for tax policy-makers,
administrators and researchers on the impact and implications of demographic variables on tax compliance in a developing
country setting.
