UNDERSTANDING THE ROLE OF TAX SERVICES IN SHAPING COMPLIANCE BEHAVIOR: A SYSTEMATIC LITERATURE REVIEW

Abstract

Considering the significant increase in tax services in encouraging taxpayer compliance, this Systematic Literature Review (SLR) investigates the effect of the diverse tax service dimensions on compliance behavior in different contexts. Alongside the growth of digitalisation and a more end-user-focused approach by tax authorities, the association between tax services and compliance has become disjoint in current research. To fill this void, this paper has undertaken a systematic review of empirical evidence to provide an overall view of how tax services influence compliance behaviour. Following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol, a systematic search was performed through two leading academic databases (Web of Science (WoS) and Scopus) to identify 30 primary studies. The selected studies were screened, quality assessed, and then categorized thematically. Three recurring themes emerged in the analysis: (1) Digital Tax Services and Compliance Behaviour, indicating that electronic platforms facilitate compliance through efficiency gains and reducing taxpayer uncertainty; (2) Psychological Influence of Tax Services on Compliance Behaviour, highlighting the mediating roles of trust, perceived fairness and service orientation; and (3) Enhancing Compliance Through Tax Education Services, emphasising the role of educational outreach and awareness programmes to foster long-term voluntary compliance. Results across these themes indicate that high-quality, convenient, trust-inspiring tax services are key factors in facilitating both voluntary and enforced compliance. This review provides for policy and scholarly dialogue by generating policy-relevant recommendations to help revenue authorities improve their strategic tax service interventions to promote taxpayer engagement and compliance. The review ends with suggestions for future research and service design enhancements to meet changing taxpayer needs.