Taxes are a necessary part of the state’s operation, yet their collection can elicit opposition from the populace. Tax systems have a long and illustrious history that dates back to ancient Egypt. Despite their long history of evolution, modern tax systems continue to evolve and confront significant challenges. This thesis examines such an important topic as the impact of tax morality and its effect on compliance with the tax laws in the UAE. First, the overview of Value-Added Tax (VAT) and Tax Morality as a legal framework is presented. The main theoretical concepts are further described, and research methodology based on primary and secondary data collection is selected. Subsequently, the history of tax morality theory, central claims, and critical factors are integrated into the research. Based on the established concepts and methods, the analysis of the phenomenon mentioned above and the factors influencing it is conducted.
Additionally, a comparison of Tax Morality between countries such as Ghana and Serbia using the available data is depicted. Consequent historical reference to taxation is used to create a retrospective concerning the modern manifestations of this phenomenon. The analysis allows a critical assessment of the tax system in UAE, using surveys responses and interviews on the effects of morality and compliance with the process as mentioned above. According to the findings, Tax Morality significantly influences people’s compliance with taxation regulations.
As a result of the presented thesis, tax funds are channeled to the state’s and population’s well-being after the government’s apparent activity. Education, social environment, level of education, grasp of tax concerns, and trust in the governmental efforts influence Tax Morality. Most citizens of the UAE approved the current tax policy, perceiving it as an adequately balanced system. It is essential to inform society about such research and bring public attention to the described examples via accurate and profound statistical summaries to ensure a high standard of morality.