The tax compliance decision of the individual in business in the sharing economy

Digital innovation is creating completely new ways to do business, unlocking a new generation of micro entrepreneurs who are progressively engaging with the sharing economy. One of the most pressing challenges tax authorities face is the tax compliance of these individuals that are new to business in the sharing economy. Kamleitner, Korunka and Kirchler (2012) developed a conceptual framework that depicts key aspects that distinguish small business owners' perceptions of their tax obligation. Using Kamleitner et al.'s framework as a basis and analysing evidence from the literature, this article aims to point out additional considerations in order to develop a revised and extended framework of the factors influencing tax compliance of individuals in business in the home-sharing economy. The results of the study propose a framework depicting the four main factors that influence the tax compliance decision, namely: (1) perceived opportunity; (2) tax knowledge; (3) decision-making, and (4) person.