The relationship between demographic and academic variables and tax literacy, tax awareness, and tax compliance: A study on undergraduate students

One of the key factors that significantly contribute to the development of societies is undoubtedly literacy. Today, literacy is categorized into various types, one of which is tax literacy. Tax literacy refers to the ability of taxpayers to understand the tax system and their obligations, as well as to effectively apply this knowledge in their daily decisions and financial planning. This form of literacy can influence taxpayers' attitudes and behaviors towards fulfilling their tax responsibilities. This thesis aims to reveal the relationships between demographic and academic variables and their impact on tax literacy, tax awareness, and tax compliance. The study seeks to provide a detailed examination of this subject by measuring the tax literacy levels of the participants. By adopting an interdisciplinary perspective, it offers a broad viewpoint on the topic. Grounded in the theoretical foundations of tax literacy, the research comprehensively analyzes the connections among demographic and academic variables, tax literacy, tax awareness, and tax compliance. This approach aspires to make significant contributions to the literature on tax literacy and enhance understanding of how various disciplines influence this subject. The research was conducted using quantitative methods, specifically through a survey involving 521 students from Düzce University and Sakarya University. The results revealed that the overall average tax literacy level among participants was 33.12 points, indicating a level below the medium standard. Approximately 59.1% of participants exhibited weak or limited knowledge in this area. Additionally, the study found that tax literacy tends to increase with age and academic success; students who have taken tax courses demonstrated higher knowledge levels, and those from the Faculty of Political Sciences scored higher in tax literacy compared to peers from other faculties. The findings also suggest that tax literacy positively influences tax compliance and tax awareness. Moreover, these results provide valuable insights for researchers interested in exploring tax literacy from a broader perspective.