Digital Knowledge and Tax Compliance in Developing Countries: A Conceptual Review

The world is gradually embracing digitization in all spheres of life, vis –a- vis taxation. As the trend progresses, digital knowledge can be considered an important factor for improving tax compliance. Our review of prior tax knowledge and compliance literature shows a mixed opinion. Majority of the opinions support that tax knowledge has significant and positive influence on compliance. However, other views showing negative relationship indicated that tax knowledge alone is not sufficient in influencing compliance. This study further established that knowledge should be democratized into basic knowledge and digital knowledge. Both knowledge categorizations can influence tax compliance significantly. This study therefore advanced existing knowledge model to reflect the trend in tax digitization. This trend requires knowledge to be digitally competitive. This study recommends that future research should consider the effect of digital knowledge on tax compliance