Abstract:
This study is aimed to find out the impact of individual economic and social
characteristics on the relationship between the awareness of taxation and tax
compliance in Hambantota district. The study is conducted in Hambantota District and
to evaluate impact of individual economic and social characteristics and to establish
relationship between the awareness of taxation and tax compliance. This research is the
survey involving income taxpayers in Hambantota District.
Random sample method is used in this research based on the availability of respondents,
studying only on the impact of individual economic and social characteristics on the
relationship between the awareness of taxation and tax compliance in Hambantota
district. A questionnaire is designed using Five-Point Likert Scales and distributed
individual income taxpayers in Hambantota District in order to learn their opinions.
Data are collected from one hundred and ten (110) taxpayers and analyze it using
Bivariate Analysis, Correlation Analysis and moderate regression Analysis.
The results indicated that the awareness of taxation, individual economic and social
characteristics and tax compliance were significant strong positive relationship between
the awareness of taxation and tax compliance. Individual economic and social
characteristics significantly impact on relationship between the awareness of taxation
and tax compliance. Individual economic and social characteristics and tax compliance
partially moderate the relationship between the awareness of taxation and tax
compliance in income tax payers in Hambantota district. Based on the overall research
finding, researcher recommended that significant strong positive relationship between
the awareness of taxation and tax compliance. The study showed that individual
economic and social characteristics such as income level, expenditure level, marital
status and ethnicity do influence the relationship between the awareness of taxation and
tax compliance. Therefor government especially attention to individual economic and
social characteristics.
