Tax knowledge is an asset which brings numerous benefits to the holder and to the society in
general, being a vital component for a reasonable level of compliance. In the absence of such
knowledge, taxpayers and tax authorities are impacted simultaneously, making it more difficult
for both parties to exercise their roles efficiently. The literature brings a continuing debate
about what the individuals’ level of taxation knowledge is and the various ways which it can
impact taxpayers’ behaviour.
The core objectives of this research project are to assess the degree of knowledge possessed by
individual taxpayers living in the Republic of Ireland and how it can be a barrier for
compliance. Likewise, this aims to explore the obstacles at comprehending the taxation
system, the key role that tax authorities play in this context, and what impact threats and
penalties may have on taxpayers.
It was employed a mixed methods approach to gather the evidence required to respond the
overall question. Questionnaire and interviews were carried out to evaluate how much
taxpayers know. According to data collected, individuals consider the tax system very complex
with a very technical language despite information related to it being easily accessible.
The overall conclusion is that individual taxpayers possess a low level of knowledge, mostly
driven by the lack of financial knowledge in schools and complexity of the system itself, which
reduces the ability and hence the degree of compliance.