DETERMINANTS OF VOLUNTARY TAX COMPLIANCE INTENTION OF INDIVIDUAL TAXPAYERS IN SRI LANKA: A CONCEPTUAL AND THEORETICAL ANALYSIS

Abstract

Voluntary tax compliance plays a critical role in ensuring fiscal sustainability and reducing dependence on external borrowing. Despite numerous policy reforms and legal amendments, Sri Lanka continues to experience persistently low tax compliance, highlighting the need to identify and understand the underlying factors that influence voluntary tax compliance among individual taxpayers. Therefore, this study is conducted to explore the factors affecting voluntary tax compliance of individual taxpayers in Sri Lanka. This study is exploratory in nature and employed secondary data obtained from empirical research literature and theoretical foundations. A comprehensive review of 642 peer-reviewed articles on tax compliance was conducted using VOSviewer software; while four main theories namely the slippery slope framework, theory of planned behaviour, tax fairness theory, and economic deterrence theory were analysed in depth. Bibliometrics mapping was used to identify thematic patterns, research gaps, and underexplored variables in the existing literature while the content analysis investigated the fundamental propositions of selected theories. Both analyses were triangulated to arrive at the factors affecting voluntary tax compliance. It was found that there is a significant gap in literature concerning the role of personal values. In response, this study categorizes influencing factors into tax system related, government related, and personal value related dimensions. It positions personal values such as ethical responsibility, trust, and civic norms as an essential variable influencing tax behaviour, a perspective that remains underexplored in the Sri Lankan context. This offers strategic insights to policymakers for designing value-aligned, trust-enhancing tax policies that promote long-term tax compliance. Hence, this study contributes to advancing both academic understanding and practical frameworks for voluntary tax compliance.