Tax Compliance and Satisfaction: The Role of e-Tax System from the Perspective of Stakeholders

This study aims to assess taxpayers and tax experts’ satisfaction with the Income Tax Law and related tax rules implemented in Jordan and its impact on tax compliance. In particular, attention is given to exploring reasons and factors that discourage tax compliance. In addition to the satisfaction of this group of tax stakeholders, the study investigates the impact of implementing information technology (IT) to improve tax compliance. To achieve the objective of the study, a questionnaire was distributed to 160 taxpayers and tax experts to assess three different aspects, which are general satisfaction with the Income Tax Law and tax rates, reasons for tax evasion, and perceptions towards implementing more advanced e-tax services and their impact on tax compliance. The study concludes that respondents are generally dissatisfied with the current tax law and tax rates. In addition, the respondents agree on some reasons for the lack of tax compliance in Jordan including weak public services provided in comparison to the amount of taxes paid, lack of accountability and transparency, and absence of penalties. Furthermore, the taxpayers and tax experts agree that the implementation of an advanced e-tax system will help in improving tax compliance. Finally, among all examined characteristics, the results revealed that the experience of the taxpayers and tax experts is associated with all the aspects assessed in this study. This study ends up with some practical implications for developing tax practices as well as some recommendations for future research.