Tax literacy: what does it mean?
- 28 December 2021
- journal article
- research article
- Published by Emerald in Meditari Accountancy Research
- Vol. 31 (3), 501-523
- https://doi.org/10.1108/medar-04-2020-0847
Abstract
This paper aims to identify the competency domains to be included in a conceptual framework for tax literacy. Using a qualitative approach, this study expands on the current understanding of the competency areas of tax literacy. A dual-purpose literature review was, therefore, conducted. The literature review first provided the body of knowledge that underpinned the study and second, the key data concepts for the draft competency structure to determine whether there is consensus on an international (supra) level. The literature review was supported by an interactive qualitative analysis to further present the concept of tax literacy from the perspectives of various national stakeholders in an emerging economy. Accounting and public finance educators from a higher education institution, as well as financial advisers as representatives of a profession with a direct interest in tax-related matters, were considered. Although a discipline lens seems to strongly influence the previous authors’ view of what tax literacy means, it was possible to identify certain tax literacy competency domains that should be included in a taxpayer education curriculum. These content domains consist first of a knowledge domain which includes disciplinary, interdisciplinary, epistemic and procedural knowledge components. Second, the skills domain should include components of cognitive and meta-cognitive, social and emotional, as well as physical and practice skills. Third, personal and societal attitudes and values represent the third domain. Fourth, transformative competencies such as value creation, taking responsibility and reconciliation attributes are important. Finally, core foundational competencies, such as numeracy and literacy should be in place. The draft conceptual framework for tax literacy could serve as the foundation for the further development of a tax literacy measurement instrument, as well as tax education courses. A more holistic conceptual framework for tax literacy, portraying the multidimensional nature of taxation, is presented in contrast to the limited one-dimensional position presented up to now.Keywords
This publication has 10 references indexed in Scilit:
- Innovations in Tax Compliance: Conceptual FrameworkPublished by World Bank ,2019
- A conceptual framework of tax knowledgeMeditari Accountancy Research, 2019
- Constructing the Fundamental Principles of Taxation through TriangulationThe ATA Journal of Legal Tax Research, 2018
- Tax LiteracyActa Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2018
- Overcoming Poverty and Inequality in South AfricaPublished by World Bank ,2018
- Analysis of Tax Education in a Business School: a Case StudyPeriodica Polytechnica Social and Management Sciences, 2016
- Building Tax Culture, Compliance and CitizenshipPublished by Organisation for Economic Co-Operation and Development (OECD) ,2015
- Taxation students’ perceptions of open-book assessment: a follow-up interactive qualitative analysisSouth African Journal of Accounting Research, 2015
- Tax Returns and Fiscal CitizenshipPublished by University of Chicago Press ,2013
- Tax Literacy and Tax Awareness of Salaried Individuals in Sabah and SarawakJournal of Financial Reporting and Accounting, 2005