Perceptions of taxation: A comparative study of different population groups in South Africa

• South Africa is a country of diverse cultures, languages, beliefs and backgrounds.
• Different population groups may have different perceptions towards taxation.
• Government could focus more on tax education amongst various population groups.
• Government should evaluate corporate communication strategies concerning taxation.

South Africa is a country of diverse cultures, languages, beliefs and backgrounds. It is conceivable that these different population groups may have differing perceptions of taxation resulting from their cultural backgrounds or even their political and social histories. These perceptions may, in turn, influence their attitudes towards tax compliance. It is, therefore, argued that in order to change taxpaying behaviour, perceptions must be first be identified, and then influenced in a positive way towards tax compliance.This study extends prior research by investigating and comparing taxpayers’ perceptions amongst the four major South African population groups (that is, Black/African, Indian, Coloured and White).The data for this study was collected from a sample of 260 South African taxpayers by means of face-to-face interviews, based on a questionnaire, compiled from an extensive literature review. The scope of the study was limited as it focused only on natural taxpayers within the Tshwane metropolitan area (which includes Pretoria, the capital city of South Africa) in Gauteng, as the purpose was not to generalise conclusions to the entire South African population.It was found that different population groups in South Africa may have different perceptions towards taxation. In order to create a more positive tax culture, government could possibly focus more strongly on educating the various population groups about the importance of paying their taxes. A multifaceted approach is needed in order to understand and influence the large number of factors that play a role in individual behaviour.