Analysis of Procedural and Retributive Justice in Tax Compliance

Deogratius Ng’winula Mahangila, Kevin Holland


date, tax research has tended to focus on tax penalties rather than
their retributive justices and procedural justices of systems imposing
tax penalties. This article focuses on retributive justices and procedural
justice in tax compliance literature.
The article examines whether or not charging corporate income
tax penalties, which are perceived retributively justice encourage tax
compliance. Also it investigates whether or not implementing
procedural justice in imposing corporate income tax penalties increases
compliance and moderates the relationship between tax compliance
and retributive justice.
Data were collected using survey method to solicit responses from
257 Small and Medium Enterprises [SMEs] taxpayers in Tanzania
about their perceptions over retributive justice of corporate income
tax penalties for not keeping complete records as well as paying
taxes on time, and likely impacts of the penalties on tax compliance.
Also the survey collected data on respondents’ perception on
procedural justice in the process of imposing tax penalties. Results from the study revealed that both perception on retributive
and procedural justices are significanly positively correlated with tax
compliance.Also the perception on procedural justice might moderate
the association between retributive justice and tax compliance.
The retributive and procedural justices fared significant better in
increasing tax compliance and the procedural justices have a
moderation effect on the relationship between tax compliance and
retributive justice. Therefore, it is recommended that tax authorities
should strive to improve retributive justice perception on their tax
penalties and procedural justice of systems involved in delivering tax

Keywords: Procedural justice, Retributive justice, SMEs Tax
avoidance, Tax compliance and Tax evasion.

Full Text:



  • There are currently no refbacks.

[ISSN 1821-7567 (Print)  & eISSN 2591-6947 (Online)]