Improving Tax Literacy and Tax Morale in Young People
Authors: Alexander, P., Balavac, M., Mukherjee, S., Lymer, A. and Massey, D.
Practitioners, policy makers and academics recognise the importance of addressing low-levels of tax literacy and tax morale in individuals, but the challenge is where to start and what to do. Actions taken by the UK Government, as in other countries, demonstrate a clear belief that taxpayer education should be introduced early and then continuously reinforced and enhanced throughout the lives of their citizens. With Making Tax Digital coming into fruition next year, it is more important than ever that the knowledge gap is assessed and addressed and the place to start is in formal education.
This research for the CIOT looks into the inter-relationships of financial and tax literacy, tax morale and tax compliance attitudes of young people at University. It considers socio-demographic influences and the impact that enhancements to financial and tax literacy may have on young adults’ tax morale (i.e. motivation to pay taxes). It also considers the young peoples’ perceptions of tax compliance and tax administration. In essence, we wanted to know (1) how tax aware are young people, (2) how high are their levels of tax morale and (3) how may their knowledge and morale be improved before they enter the job market.