Government Trust as a Significant Determinant of Tax Compliance: A Study of Pakistan

Tax compliance behavior of individuals is ascertained in this research. Among the variables which affect the tax compliance behavior, government trust and tax justice perception are studied. 300 individuals were taken as sample from Pakistan to study the relationship between variables of government trust, tax compliance and tax justice perception. Data is obtained through questionnaire and analyzed using reliability test, correlation and regression analysis. The results of the study showed that tax justice perception and government trust are the major determinants of tax compliance behavior in Pakistan. Tax justice perception plays the role of mediator through government trust to enhance tax compliance. Study implicates some useful suggestion that government should always put efforts in gaining public trust by increasing public services, making tax system understandable for everyone by making documentation easier so that more and more people can obey the rules which can increase compliance level.