Abstract:
1. Introduction
The country’s tax revenue is the fundamental funding source for the
government to deliver essential public services. In Sri Lanka, tax evasion
among private tutors has become a significant problem restricting such
government funding. Kandy district is home to 30,000 private tutors and
has a 60% household tuition usage rate. Hence, this study examines the
reasons for tax evasion among private tutors in Kandy district, from the tax
assessors’ perspectives.
2. Research Methodology
This study employed a qualitative research methodology embedded in the
interpretivism paradigm to understand the reasons for tax evasion. Using a
phenomenological research strategy, the research involved semi-
structured interviews with ten tax assessors selected through purposive
sampling. Thematic analysis was used to identify patterns and themes
related to tax evasion.
3. Findings and Discussion
The findings indicated that tax evasion among private tutors in Kandy is
driven by both government and personal factors. Issues such as political,
system and tax administration inefficiencies contribute to non-compliance.
Additionally, personal factors, including a lack of tax knowledge and the
influence of peers, reinforced the tendency to evade taxes. These insights
resonate with existing literature, highlighting the need for a
comprehensive approach to address systemic weaknesses and individual
behaviors.
4. Conclusion and Implications
This study discovers that addressing tax evasion among private tutors
requires a multifaceted approach that involves simplifying tax systems,
enhancing public service delivery, and increasing taxpayer education. Such
measures are essential for fostering compliance and ensuring that private
tutors contribute to national revenue, thereby supporting the overall
economic development of Sri Lanka.
