Findings, Data Presentation, Analysis and Interpretation

CHAPTER FOUR: FINDINGS, DATA PRESENTATION, ANALYSIS AND
INTERPRETATION
4.1 Introduction
The researcher has effectively presented the data analysis, findings and discussions for all
the objectives in this chapter. Data was analyzed using several methods. The study used
descriptive methods (means and standard deviations), Bartlett’s sphericity test, KMO
measure and the factor analysis.
4.1.1 Empirical studies
In an Australian cross-cultural study by Gilligan and Richardson (Gilligan and Richardson,
2005), it was found that perceptions of tax fairness is very crucial for tax complying among
the citizens. The respondents were business students. Fairness and legitimacy were found to
be related and legitimacy perception was seen as a significant influence in relation to
compliance to tax responsibilities. The current study sought the relationship of fairness
perceptions on compliance to tax obligations.
In a comparative cross-cultural study of Malaysia and New Zealand, Natrah (2012) studied
the tax compliance as affected by tax fairness perceptions. Results from partial least squares
and t-tests suggested that New Zealand tax payers were more tax compliant than the
Malaysian citizens. This was despite the fact that the Malaysian respondents had more
significantly better tax fairness perceptions regarding their tax systems. The researcher
found that tax compliance was affected by attitudes that individuals had regarding
compliance but not the fairness itself.
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4.2 Questionnaires that were Returned
The return rate is shown in table 4.1 below.
Table 4.1 Percentage of Questionnaire Return Rate
Category Issued
questionnaires
Returned
questionnaires
Return rate
Respondents 350 332 94.57%
Total 350 332 94.57%
The Table 4.1 shows that from the 350 respondents, all the respondents did not comply. This
reduced the questionnaires by 19 since the returned questionnaires were 332. Consequently,
the return rate was 94.57. Although not a perfect return rate, this was a good return rate that
would ensure reliable and adequate information from the filled questioners.
4.3 Results from the Pilot
The researcher conducted a pilot study so as to ascertain the how reliable the research
instruments were. The researcher sought to identify and address any ambiguities that the
questionnaires might present. Any questions in the questioners that were hard to be
understood were modified so as to ensure that the respondents were responding to items that
were clear to them. Other items that were removed from the questionnaires are the items that
were irrelevant. The Table 4.2 has the results of the pilot study.
Table 4.2 Reliability Test Results
Scale Cronbachs alpha Items
Respondents .791 33
The resulting reliability coefficient (reliability index) was above 0.78 (0.791) which is
universally accepted as reliable.
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4.4 Demographic Information
The study gathered the respondents’ demographic information. It was believed that the
demographic factors had a role that they played in the perception in regard to tax compliance
in the area of study. The table 4.3 has the statistics for the demographic information.
Table 4.3: Statistics on Demographic Information
gender age level of education Occupation marital status
N
Valid 332 332 332 332 332
Missing 0 0 0 0 0
Mean 0 1.00 2.30 2.20 2.00
Std. Deviation .483 1.155 1.337 1.317 .943
Sum 332 332 332 332 332
The table 4.3 shows the demographic variables with their means and their standard
deviations. For the gender, 0 was taken to represent female and 1 male. It therefore shows
that there were more females than men who participated in this study. The standard
deviation was 0.483. On age, the age bracket 20-29 was assigned 0, age bracket 30-39 was
assigned 1, age bracket 40-49 was assigned 2 while those who were 50 years and above
were assigned 3. Since the mean for age was 1, it means that those who were in the age
bracket 30- 39 represented the highest number. The standard deviation was not large since it
did not deviate much from the threshold one (1.15), meaning there were no outliers and the
data had a normal distribution. Therefore, the respondents were mainly people who were in
their middle age who are generally settled down by that age. On the other hand, the
researcher assigned values to responses for the level of education. Those who were
secondary professionals were assigned 0, primary professionals were assigned 1, post
graduate were assigned 2, graduate were assigned 3, and doctorate were assigned 4. Level of
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education had a 2.3 mean together with a standard deviation of 1.3. The mean shows that
most of the people were post-graduates. Since the standard deviation was 1.3, there is no
likelihood of outliers in the data. This is a normal distribution. Occupation was also sought
and the results are indiative that the mean was 2.2 and a standard deviation of 1.3, which
was low. The students were assigned the value 0, pensioner 1, self-employed was assigned
2, employed was assigned 3, and unemployed was assigned 4. This shows most of the
people were self employed. Lastly, the researcher assigned values for marital status. Single
was assigned 0, single with kids was assigned 1, married was assigned 2, while married with
kids was assigned 3. The mean was 2 with a standard deviation of 0.9. This shows that most
of the respondents were married. The standard deviation shows that a large part of the
study’s data was most of the data was gathered together near the mean.
4.5. Tax Fairness and Tax Compliance from a General View point
4.5.1 General fairness
Descriptive statistics were run to test the general perception of tax fairness. Five lickert scale
responses on ratings for the perception on tax based on statements (0 was taken as a
representative of strongly disagree, 1 was taken as a representative of disagree, 2 was taken
as a representative of neutral, 3 was taken as a representative of agree and 4 was taken as a
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