In this section presented the related review literature and the studies that has relation to the researchers

topic.

Tax. Defined as money that has to be paid to the government by the people according to their profits on
goods and services provided.( Angahar,2012). It is a transfer from individuals to the government, which
can be used to provide public goods or redistribute towards individuals deemed worthy of support.

Tax literacy. According to study made by Madi et al (2010) a person can be considered functionally
literate if he/she can read, write and calculate for his/her own self. By analogy tax literacy may be
defined as follows:a person is considered functionally tax literate if he/she can independently read and
understand tax reports, can engage independently in various tax calculations and is aware of possible tax
risks in its financial environment.

In the study entitled Tax Literacy among Employees: Sabah and Sarawak's Perspective cited by Nero et al
(2010) that tax literacy is the ability to fill in the tax form and calculate their tax liabilities independently.
Emphasize that respondents should know how to determine tax liability if they know what constitutes
taxable income, deductible deductions, claimable tax reliefs and rebates. The only aspect that has not
been explored lin this tax literacy paper is the application of tax rate against the taxable income before
claiming tax rebates to arrive at tax payable.

According to Waris and Murangwa (2012) tax literacy is intended to firstly, help provide information
about taxes, secondly, not to support any particular type or amount of taxes, but to simply explain taxes
within a domestic system as well as a regional and international system, and how it impacts on those
being informed.

Sex. there were many studies about tax knowledge based on gender preferences some of this is the
study of Fallan on 1995, he conducted a study on the Gender Exposure on Tax Knowledge which reports
on findings of gender diferences on a test on tax knowledge assessing students outcomes. He found out
that test performance is infuenced by student's exposure to tax knowledge and to item the content of
the test. Men and Woman learned tax diferently. Fallan.L.,1999)

Computing Tax Dues. Mr. Sarker the director of DCCI Business Institute (DBI) said evasion of tax is a
crime, but proper calculation of taxes and enjoying exemption of taxes as per rules and regulations are
necessary to become competitive in the market. For this, knowledge of diferent rules and regulations of
VAT and income tax is necessary for a business.(The Financial Express, 2009).The DCCI conducted
trainings "Rules and Procedures of VAT and Income Tax) that facilitate the career path of participants in
their respective business careers.

Tax Purpose. The most obvious goal is raising revenue to spend on public services: balancing the
potential extra revenue taken by high tax rates with the disincentive to work and temptation to illegally
evade taxes that high tax rates induce. (Reimers, S. 2009).