The importance of tax literacy in tax compliance, suggestions to be developed in the case of country applications

Abstract

Taxes are the economic values that are received by the governments voluntary and the tax authorities under the enforcement according to the rules specified by the law. As tax is the most important source of income of the state, the approaches that strengthen tax awareness and increase tax compliance have become important for the revenue administrations. Tax literacy can be defined as having the ability to know and understand the tax-related issues, to follow them, to follow the developments, and to carry out their personal budget in the best way by considering the tax debts to be paid.This study highlighted the importance of factors that determine the tax compliance in tax literacy and examined arrangements and projects related to tax literacy in the OECD countries and the United States and projects and researches related to tax literacy in Turkey are presented. In the study, it was concluded that the level of tax literacy in our country was not very good and suggestions were made about the activities that could be carried out to increase tax literacy.