Digital Tax Ecosystems and Compliance Behaviour: A Moderated–Mediated Framework for Self-Earning Professionals

Abstract

The quick digitalisation of tax administration has changed the way taxpayers interact with revenue authorities, especially the self-earning professionals who handle their tax affairs on their own. This study explores the moderating and mediating effects of Digital Trust (DT) and Tax Awareness (TA) between Digital Tax Ecosystems (DTE) and Tax Compliance Behaviour (TCB). A quantitative research design was used, and data were gathered from self-learning professionals using a structured survey instrument. Partial Least Squares Structural Equation Modelling (PLS-SEM) was utilised for analysing the proposed moderated–mediated framework. The study results show that a Digital Tax Ecosystem has a significant positive impact on Tax Awareness and Tax Compliance Behaviour. The results showed that Tax Awareness partially mediated the link between DTE and TCB, and that Digital Trust enhanced the positive effects of DTE on compliance behaviour. The novelty of the study is that it is a technological, behavioural and institutional approach all in one. They offer policy implications for policymakers seeking to improve voluntary compliance by adopting digital transformation, increasing taxpayer education and trust.