Tax knowledge in connection with tax compliance in Hungary

Abstract

During the examination of tax education, a significant part of the professional literature defines taxpayers as a homogeneous group, however, among others, the level of educational attainment and the digital skills of taxpayers are also important. This research investigates the role of knowledge in connection with tax compliance. The article is based on the statements from the professional literature and analysis of secondary data from national and international authorities and institutions. It also includes some comparisons of the components of the COM-B model on the data of nine European countries and sets up a model of tax behaviour based on Hungarian conditions. According to the classification based on the comparison, the performance of Hungary is at the lowest level among nine examined countries. Considering the complexity of the tax system, the knowledge of taxpayers is incomplete in Hungary. A developed version of the COM-B model points out that there is a close connection between capability and opportunity as well and these components can reinforce each other. With the adequate motivation and literacy as well as the knowledge of procedures can facilitate tax compliance. It can be concluded that successful tax education recognises and targets various groups of taxpayers. The Hungarian tax authorities treat taxpayers as a homogeneous group, however, there are slight developments by using several communication channels. In the current situation, the most important is to find the forms and levels of tax education to make the taxpayer able to comply.