ABSTRACT
Theories focused on tax compliance fall broadly into two distinct categories; those emphasising rational economic behaviour by assuming that tax compliance decisions are taken to maximise outcomes for the taxpayer, and those which also recognise the moral, psychological, and social factors influencing tax compliance. The link between both sets of theories is a focus on individual taxpayers and their relationship with the relevant revenue authority. While undoubtedly shedding light on how some compliance decisions are made, this focus may obscure other important factors within tax systems of modern economies where fiduciary taxes paid by organisations on behalf of individual taxpayers make up a significant majority of the tax take. In this chapter we explore conceptually whether the existing tax compliance theories are appropriate in the context of tax compliance within developed countries relying heavily on fiduciary tax collection mechanisms.
