Proposed Model Proceeding E Book 4A Turky

150 FIGURE 2 Factors Affecting Fairness Perceptions and Compliance Behavior

5. Methodology

This section outlines the data collection and sampling characteristics, measurement techniques, demographic information and data analysis.

5.1 Data collection and Sampling

Data were collected through a postal survey. A total of 2,267 questionnaires were mailed to taxpayers. The questionnaire included a total of 85 items, including items not included in the analysis within this study. Since there is no identifying coding on the questionnaire, a reminder was mailed to all of those in the first mail out to increase the response rate. A total of 229 usable responses were received for a Attitude towards compliance Subjective Norms Intention to comply Tax knowledge Tax complexity Compliance behavior Fairness perception Perceived Behavioral Control 151 response rate of 10 percent. While the response rate is low refer Slemrod Venkatesh, 2002 the absolute number of responses is sufficient for further analysis. The sample comprise of New Zealanders listed on the 2008 Preliminary Electoral Roll. The Electoral Roll is a list of all registered New Zealand voters over the age of 18 years and will include most New Zealand individual taxpayers. A major limitation is that it will also include taxpayers who do not have to file tax returns but receive a Personal Tax Summary PTS. Nonetheless, the use of the Electoral Roll in tax studies has been previously undertaken in New Zealand by Hasseldine et al. 1994.

5.2 Measurement techniques

Twelve items were used to measure the five dimensions of fairness. Out of these, four items were adapted from the previous study Gilligan Richardson, 2005 while the remaining items were self-developed with reference to the concept of fairness in Equity Theory and the New Zealand income tax system. The items were scaled such that a higher number reflects a fairer perception. For compliance behavior, a hypothetical tax scenario relating to overstating expenses was developed. Following the scenario, 14 statements relating to the TPB variables intention, attitude, subjective norm and perceived behavioral control were generated and the respondents were requested to express their opinions on the statements. Intention, attitude and subjective norm were scaled such that a higher number corresponds to more compliance with tax obligations. In this study, compliance behavior was measured through its proxy, intention to comply. Perceived behavioral control, on the other hand, measures control over non-