People have become more restive about paying taxes to a government mired in allegations of corruption.
Tax revolts date back to biblical times. Throughout the ages they have exhibited similar symptoms of a decline in taxpayer morale andin South Africa signalling dissatisfaction and concerns over the management of public finances suggest that the country could be on the brink of a tax revolution.
The study found that the fine line between tax compliance and resistance lies where government creates an equitable distribution between collective costs and benefits. Often the threat of a tax revolt is a measure to renegotiate the terms of a fair exchange and a mechanism to mobilise the association that disintegrated between taxpayers and government.Governments use tax policy to achieve a number of objectives.
People’s perceptions about the fairness of a fiscal regime are crucial. Simply put, tax revolts arise when government receives tax payments but fails to deliver the perceived reciprocal benefits. One of the main motivations to rebel is when a tax regime is perceived to be unfair and oppressive. A tax revolt is effectively a mechanism for citizens to renegotiate the terms of exchange.
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