scholarly journals Economic versus Non-Economic Factors: Which is More Relevant to an Individual's Tax Compliance Decisions in a Developing Economy?

2022 ◽  
Vol 10 (1) ◽  
pp. 181-190
Author(s):  
Jones Adjei Ntiamoah ◽  
Joseph Asare
2021 ◽  
Vol 8 (10) ◽  
pp. 105-116
Author(s):  
Ni Putu Riasning ◽  
Anak Agung Bagus Amlayasa ◽  
Luh Kade Datrini

This study aims to (1) examine the effect of repeated tax amnesty knowledge on taxpayer compliance, (2) examine the effect of tax sanctions on taxpayer compliance based on threats to taxpayer compliance decisions, and (3) examine differences in taxpayer compliance based on taxpayer knowledge, on the re-implementation of tax amnesty and the effect of tax sanctions on taxpayer compliance decisions. This study used a 2 x 2 factorial experimental research design between subjects by using 119 participants from accounting students from the Faculty Economic and Busines Warmadewa University. The results showed that both the knowledge of taxpayers on the re-implementation of tax amnesty and the effect of tax sanctions on taxpayer compliance decisions can affect taxpayer compliance. Besides that too, there is an interaction between taxpayer knowledge on the re-implementation of tax amnesty and the effect of tax sanctions on taxpayer compliance decisions where if the taxpayer is in a condition not aware of the repeated application of the tax amnesty, taxpayers who also receive high tax sanctions will show the highest degree of compliance, compared to subjects in other situations. Hypothesis testing using a different test t test with the help of the SPSS 26.0 program. The expected research output is that the results of this research will be published in the proceedings of the Warmadewa of University Research Institute. Keywords: Recurring tax forgiveness, tax sanctions, tax compliance.


2018 ◽  
Vol 2 (2) ◽  
pp. 65-69
Author(s):  
Lee Heng Liang ◽  
Mohd Norfian Alifiah ◽  
Loo Ern Chen

Goods and Services Tax (GST) system was implemented on the 1st April 2015 in Malaysia.  Like many others tax administration, tax compliance has been a major concern to the Royal Malaysia Customs Department (RMCD) (Zainol et al., 2015).  The issue of tax non- compliance such as over claiming of input tax, not issuing tax invoices, and under declaring output tax by the registered persons induced this study.  Thus, this study seeks to establish the determinant factors that may influence the tax compliance behaviour of GST registered person in Malaysia.  This study also attempts to propose a conceptual framework GST tax compliance behaviour by integrating economic factors such as tax structure system of GST tax rate, audit, penalty/fine, and psychological and sociological factors like attitude towards GST and GST tax knowledge.


2005 ◽  
Vol 27 (1) ◽  
pp. 39-72 ◽  
Author(s):  
B. Charlene Henderson ◽  
Steven E. Kaplan

The relationship between ethical beliefs and tax compliance is well documented, but extant research has not explored the relationships among general ethical beliefs, contextual ethical beliefs, and tax compliance behavior. In this study we propose a model that is intended to clarify the mechanisms through which ethical beliefs impact tax compliance. In the model, contextual ethical beliefs represent the mechanism through which individuals' general ethical beliefs impact tax compliance behavior. The model is tested using participants' ethical orientations as measures of their general ethical beliefs and using participants' ethical evaluations of others' tax compliance decisions as measures of their contextual ethical beliefs. Tax compliance behavior is inferred from participants' estimates of the likelihood that they would evade. Overall, the findings from our study support the proposed model. Ethical orientations are directly related to ethical evaluations; ethical evaluations directly predict tax compliance behavior; and finally, ethical orientations are indirectly related to tax compliance behavior. That is, ethical orientations influence tax compliance behavior, but only through their influence on ethical evaluations. We believe that the proposed model provides an important contribution by providing a framework that outlines the routes through which ethical beliefs impact tax compliance.


2016 ◽  
Vol 52 ◽  
pp. 38-55 ◽  
Author(s):  
Martin Fochmann ◽  
Eike B. Kroll

2015 ◽  
Vol 60 (03) ◽  
pp. 1550029 ◽  
Author(s):  
TILAK ABEYSINGHE

While Singapore is grappling with policy options to sustain its success over the next 50 years, the developing world is wondering what made it such a success so far. By looking at some developing countries that are stuck in a roller-coaster ride of economic development I highlight some policy lessons they can learn from Singapore's success story. In a nutshell, as pointed out by Singapore's economic architect, Dr. Goh Keng Swee, non-economic factors matter more than the economic factors for a successful take-off of a developing economy. The paper also highlights some complementary development strategies that are instructive to developing economies.


Author(s):  
Kosgei David KIpkoech ◽  
Tenai Joel

The problem of tax compliance is as old as taxes themselves. Characterizing and explaining the observed patterns of tax noncompliance and ultimately finding ways to reduce it are of obvious importance to nations around the world. As a public finance topic, tax compliance spans the notions of equity, efficiency and incidence. Low tax compliance is one of the internal factors affecting the ability of the Kenyan government to raise direct tax revenues and thus meet its recurrent and development expenditure. Therefore, this study assessed the economic factors affecting tax compliance among various limited liability companies within the municipality of Eldoret. The general objective of the study was to assess the economic factors affecting tax compliance among various limited Liability Companies within Eldoret Municipality. The study specifically sought to determine the effect of tax rates, tax audits, and level of actual income, fines and penalties on tax compliance. The study adopted survey design. Stratified random sampling was used to select a sample of 320 companies drawn from the target population of 1,470 limited companies. Data was collected using structured questionnaire, coded, keyed and analyzed quantitatively using both descriptive and inferential statistics. The study findings showed that tax audits had the highest positive effect on level of tax compliance followed by tax rate, fines and penalties. Tax incentives and level of actual income had the least positive effect on tax compliance .Based on these findings, the study concludes that reducing tax rate, ensuring Kenya Revenue Authority tax auditors to educate taxpayers; enforcing fines and penalties, provision of tax incentives and considering the level of actual income of the taxpayers will improve tax compliance. The study recommends that Kenya Revenue Authority management can improve the level of tax compliance by ensuring favorable and fair tax rates. Tax audits findings should be made available to the taxpayers, while fines and penalties need to be enforced effectively. The authority should also improve tax incentives and consider level of income of the taxpayers in its policy formulation. All these can be achieved through an elaborate taxpayer’s education.


2017 ◽  
Vol 8 (1) ◽  
Author(s):  
Elen Puspitasari ◽  
Yeye Susilowati ◽  
Wahyu Meiranto

the effect of motivational postures and tax reporting behavior of one’s peers on taxpayer com-pliance was examined in this experimental study. This experimental research was conducted under the circumstances arranged and direct manipulation on taxpayer external factor, namely the independent variable is peer reporting behavior, so it can be determined causality effect of the independent variable on the dependent. The respondent is 81 taxpayers whose run the small business. A motivational posture was measured by using 29 statements developed by Braithwaite. Analysis of Covariance is used because this research conducting Quasi Experimen-tal Design Between-Subject with Covariate with random assignment method. Peer reporting behavior as an experimental variable consists of two level treatments. The result shows that the posture of motivation Indonesian taxpayers’ as a concomitant factor does not affect tax compli-ance decisions. Furthermore, this study provides evidence that peer reporting behavior were significant factors in explaining the experimental reporting decision. The findings of this study are expected to provide discourse to the government to improve tax compliance decisions in Indonesia in terms of posture motivation and peer reporting behavior among taxpayers.


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