Review Related Literature

In this section presented the related review literature and the studies that has relation to
the researchers topic.
Tax. Defined as money that has to be paid to the government by the people according to their
profits on goods and services provided.( Angahar,2012). It is a transfer from individuals to the
government, which can be used to provide public goods or redistribute towards individuals
deemed worthy of support.
Tax literacy. According to study made by Madi et al (2010) a person can be considered
functionally literate if he/she can read, write and calculate for his/her own self. By analogy tax
literacy may be defined as follows: a person is considered functionally tax literate if he/she can
independently read and understand tax reports, can engage independently in various tax
calculations and is aware of possible tax risks in its financial environment.
In the study entitled Tax Literacy among Employees: Sabah and
Sarawak's Perspective cited by Nero et. al (2010) that tax literacy is the
ability to fill in the tax form and calculate their tax liabilities independently.
Emphasize that respondents should know how to determine tax liability if
they

know

what

constitutes

taxable

income,

deductible

deductions,

claimable tax reliefs and rebates. The only aspect that has not been explored
in this tax literacy paper is the application of tax rate against the taxable
income before claiming tax rebates to arrive at tax payable.

According to Waris and Murangwa (2012) tax literacy is intended to firstly, help provide
information about taxes, secondly, not to support any particular type or amount of taxes, but to
simply explain taxes within a domestic system as well as a regional and international system, and
how it impacts on those being informed.

Sex. there were many studies about tax knowledge based on gender
preferences some of this is the study of Fallan on 1995, he conducted a study
on the Gender Exposure on Tax Knowledge which reports on findings of
gender differences on a test of tax knowledge assessing students outcomes.
He found out that test performance is influenced by student`s exposure to
tax knowledge and to item the content of the test. Men and Woman learned
tax differently.( Fallan.L.,1999)
Computing Tax Dues. Mr Sarker the director of DCCI Business Institute (DBI)
said evasion of tax is a crime, but proper calculation of taxes and enjoying
exemption of taxes as per rules and regulations are necessary to become
competitive in the market. For this, knowledge of different rules and
regulations of VAT and income tax is necessary for a business. ( The Financial
Express, 2009). The DCCI conducted trainings Rules and Procedures of Vat
and Income Tax that facilitate the career path of participants in their
respective business careers.

Tax Purpose. The most obvious goal is raising revenue to spend on public
services: balancing the potential extra revenue taken by high tax rates with
the disincentive to work and temptation to illegally evade taxes that high tax
rates induce. (Reimers, S. 2009).

Reference
Angahar, Paul A.(2012). Personal income tax administration in Nigeria: challenges and prospect
for increased revenue generation from self employed persons in the society. Global
Business and Economics Research Journal. Vol. 1 (1): 1-11 Retrieved from
journal.globejournal.org/index.php/gberj/article/view/50/35
Madi, N., Kamaluddin, A., Janggu, T., Ibrahim, M. B. A., Samah, A. B. A., & Jusoff, K. (2010).
Tax literacy among employees: Sabah and sarawak's perspective. International Journal of
Economics

and

Finance, 2(1),

218-223.

Retrieved

from

http://search.proquest.com/docview/821711187?accountid=31259
Thrust on proper knowledge on income tax laws. (2009, Sep 14). The Financial
Express Retrieved from http://search.proquest.com/docview/616822323?accountid=31259
Fallan, L., Gender, exposure to tax knowledge, and attitudes towards taxation; an experimental
approach, Journal of Business Ethics, Vol.18, No. 2,1999, pp 173-184.
Madi, N., Kamaluddin, A., Janggu, T., Ibrahim, M.B.A., Samah, A.B.A., Tax Literacy among
Employees: Sabah and Sarawaks Perspective, International Journal of Economics and Finance,
Vol 2, No.1, 2010, pp 218-223.

Reimers, S. (2009). A paycheck half-empty or half-full? framing, fairness and progressive

taxation. Judgment and Decision Making, 4(6), 461. Retrieved from
http://search.proquest.com/docview/1011278283?accountid=31259