The Importance Of Tax Literacy

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Abstract

Tax literacy presents one of the financial literacy dimensions which refers to possessing specific tax oriented financial knowledge and numeracy skills, required for managing tax calculations. Tax literacy is intended to help individuals receive information about taxes, to explain them taxes within a domestic system as well as regional and international system. The aim of this paper is to stress out that the complexity of the taxation system

Introduction
Tax literacy presents one of the financial literacy dimensions which refer to possessing specific tax oriented financial knowledge and numeracy skills, required for managing tax calculations. Tax literacy is intended to help individuals receive information about taxes, to explain them taxes within a domestic system as well as regional and international system. By acquiring basic knowledge of taxation and public expenditures, individuals become able to efficiently manage their personal …show more content…

According to the OECD (2008) there are many reasons why financial education presents a major policy concern. Financial education is particularly required due to the complexity of financial products and services, involving tax issues. Tax system itself presents a complex system, and in the context of continuous changes it becomes even more challenging for a financial consumer to be adequately educated on it. Of course, taxpayers who do not understand the tax laws and procedures cannot comply their tax obligations so they need education and assistance programs to help them better understand their tax obligations and entitlements. This precisely is the main function of financial literacy and financial education. Financial education is intended to increase individuals’ awareness of financial issues and possible financial risks, to provide them information on

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