Abstract:
This study attempted to reveal the factors influencing income taxpayers’ compliance behavior
of Kandy District income taxpayers. The main objective of the study is to find out impact of
taxpayers’ perception of tax fairness on income tax payers’ compliance behavior. The study
used a cross-sectional survey method of research design. Given the scale ranking information
of the dependent variable, income tax payer’s compliance behavior was influenced by the
perception of tax fairness. The study results from the survey conducted in Kandy district using
100 respondents, indicate that income taxpayers’ compliance behavior influenced by exchange
with government, special provision and tax rate structure. The result of this study can inform
the government how the determinants influence tax income taxpayers’ compliance behavior.
The analysis focuses on tax compliance and its determinants and is therefore subject to an
underlying assumption of taxpayers’ understanding of income tax and other potentially relevant
information. The result of this study also provides specific insights and allows the government
to gain a benefit understanding of the variables that are significantly associated with tax
compliance and enable them to implement suitable strategies to minimize potentially damaging
factors and should also allow them to improve the government’s tax revenue collections. In Sri
Lanka, tax collection is evidenced to be low. The findings of the study indicated that the
taxpayers' perception of tax fairness has moderately influence income taxpayers' compliance
behavior. Hence, studying the factors influencing tax compliance is of enormous significance.
