Compliance behavior as a global talent gap in Sri Lanka

Abstract

This study explores the Analysis of income tax compliance behavior and sector-wise contribution to government tax revenue in Sri Lanka. The objective of the study is to analyze which sector influences more in compliance behavior in the light of the income tax in Sri Lanka context and Identify factors affect the compliance behavior. This area of research did not appear to have been previously studies in Sri-Lanka context and in this respect the research represent an original contribution while research have been conducted in Sri-Lanka. Major part of the government revenue is collected through the well-defined system of administration for the survival of the country. The tax system helps the government to generate the public revenue for the economic development of the country. The income tax collection could be divided into corporate sector and non-corporate sectors. This study used quantitative component from which numbers of convergent results emerged. The total income tax revenue from corporate and non-corporate sectors as key indicators for a period of twelve years was considered as a secondary data for this study. The independent samples test and correlation were tested to draw conclusion that average compliance performance of the two sectors is significantly different from each sector. That means two sectors do not have the same efficiency in income tax compliance behavior.