A Comprehensive Review of Voluntary Tax Compliance: Evidence from Sri Lanka and Global Research

Shathurshana Ratahkrishnan and Vinagamoorthy Anputhasan

Journal of Accounting and Finance in Emerging Economies, 2026, vol. 12, issue 1, 15-32

Abstract: Purpose: This review examines the key determinants of voluntary tax compliance in Sri Lanka and internationally. It aims to identify behavioural, institutional, economic, and technological factors influencing taxpayers’ willingness to comply and to provide policy recommendations relevant to Sri Lanka.Design/Methodology/Approach: The study adopts a structured literature review of 62 empirical studies (14 Sri Lankan and 48 international) published between 2000 and 2025. Sources were selected from Google Scholar, Scopus, JSTOR, DOAJ, and Sri Lankan journals. The review is guided by Economic Deterrence Theory, Fiscal Exchange Theory, Theory of Planned Behaviour, Social Influence Theory, and the Slippery Slope Framework.Findings: Voluntary compliance is influenced by tax knowledge, perceptions of fairness and procedural justice, institutional trust, socio-economic conditions, and digitalisation. Sri Lankan evidence highlights the stronger role of social norms, fairness, and trust over enforcement measures. International findings emphasise administrative simplification, online platforms, behavioural nudges, and taxpayer-friendly services. Awareness alone is insufficient; positive attitudes, transparency, and trust significantly enhance compliance.Implications/Originality/Value: The study integrates local and global evidence, identifying research gaps in digital taxation and behavioural approaches. It recommends prioritizing education, simplification, institutional trust-building, and digitalization over excessive enforcement to improve sustainable voluntary compliance.

Keywords: Digitalisation; Procedural fairness; Institutional trust; Tax knowledge and literacy; Voluntary Tax compliance (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:12:y:2026:i:1:p:15-32

DOI: 10.26710/jafee.v12i1.3512

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