scholarly journals Effect of Economic Factors on Tax Compliance in Kenya: A Survey of Limited Liability Companies within Eldoret Municipality

2015 ◽  
Vol 1 (2) ◽  
pp. 19-24
Author(s):  
Kosgei David KIpkoech ◽  
Tenai Joel
Keyword(s):  
Survey Design ◽  
Tax Compliance ◽  
Limited Liability ◽  
Tax Incentives ◽  
Policy Formulation ◽  
Economic Factors ◽  
Tax Rates ◽  
Tax Rate ◽  
Factors Affecting ◽  
Positive Effect

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.

scholarly journals Examining the Impact of PP 23/2018 policy through the Tax Compliance Factor of Tanah Abang Traders

2021 ◽  
Vol 11 (1) ◽  
pp. 68
Author(s):  
Wardinto P ◽  
Gunadi .
Keyword(s):  
Quantitative Method ◽  
Tax Compliance ◽  
Tax Rates ◽  
Legal Certainty ◽  
Group Influence ◽  
Social Phenomena ◽  
Tax Rate ◽  
Compliance Behavior ◽  
The Impact ◽  
Positive Effect

This study aims to examine the factors that can affect tax compliance at Tanah Abang Market traders, which are the tax rate, perceived opportunity to evade, legal certainty, and group influence. This study uses a quantitative method with a positivism approach which examines social phenomena and captures the perceptions of MSEs actors on the determinants of tax compliance. The sample in this study were 154 MSEs respondents in Tanah Abang Market that were scope into Central Jakarta Regional Tax Office, both private individuals and corporate taxpayers. The results of the study revealed that the tax rate, perceived opportunity to evade, legal certainty, and group influence have a positive effect on tax compliance at Tanah Abang Market traders, but not significant only in the tax rate variable. This is very useful for the DGT authority and the Fiscal Policy Agency as policymakers that the reduction in tax rates does not affect the compliance behavior of MSEs traders and increase monitoring of compliance with MSEs taxpayers through derivative regulations on the implementation of supervision of MSEs taxpayers. 

scholarly journals PENGARUH PEMAHAMAN PERATURAN PERPAJAKAN, PERSEPSI TARIF PAJAK, DAN KEADILAN PERPAJAKAN TERHADAP KEPATUHAN WAJIB PAJAK

2019 ◽  
Vol 1 (1) ◽  
pp. 47-54
Author(s):  
Pipit Annisa Fitria ◽  
Edy Supriyono
Keyword(s):  
Regression Analysis ◽  
Linear Regression Analysis ◽  
Tax Compliance ◽  
Multiple Linear Regression Analysis ◽  
Tax Rates ◽  
Test Results ◽  
Tax Rate ◽  
Medium Enterprise ◽  
Tax Payers ◽  
Positive Effect

The purpose of this research is to find out the achievement factors of the tax compliance of Small and Medium Enterprise in Purbalingga Regency. The variables tested were the understanding of tax regulations, perceptions of tax rates, and tax justice. The population in this study were all tax payers for Small and Medium Micro Businesses in Purbalingga Regency. The samples produced in this study were 65 respondents. Selected respondents are Small and Medium Micro Businesses who already have an NPWP. The data were collected through questionnaires and analyzed using multiple linear regression analysis. Based on the t-test results show that the variable understanding of tax regulations has a positive effect on taxpayer compliance, the tax rate perception variable negatively affects taxpayer compliance, and the tax justice variable does not affect taxpayer compliance

scholarly journals Pengaruh Tarif Pajak dan Probabilitas Audit terhadap Kepatuhan Pajak Penghasilan (Studi Eksperimen Laboratorium)

2014 ◽  
Vol 5 (1) ◽  
Author(s):  
Lintje Kalangi
Keyword(s):  
Laboratory Experiment ◽  
Income Tax ◽  
Tax Compliance ◽  
Model Analysis ◽  
Tax Rates ◽  
Individual Income ◽  
Tax Rate ◽  
Compliance Behavior ◽  
Individual Income Tax ◽  
Positive Effect

The objective of this research  is to analyze   the effect of tax rates, and the probability of audit on individual income tax compliance.This research is an explanatory  research, which done through  laboratory experiment, to explain the casual   relationships (causality)  between variables. Participants of  this experiment  consit of 30  students Master of Accounting and Accounting Professional  Program at Faculty of Economics, Sam Ratulangi University, Manado. The model analysis was of the research  using Normal Censored Tobit ).The results indicate that: (1)  tax rate has  positive effect on tax compliance behavior. (2) probability of audit has   positive effect on compliance tax and changes in probability  of audit level has different effect   on compliance tax.

scholarly journals The Elements of Conceptual Model Goods and Services Tax Registered Persons in Malaysia

2018 ◽  
Vol 2 (2) ◽  
pp. 65-69
Author(s):  
Lee Heng Liang ◽  
Mohd Norfian Alifiah ◽  
Loo Ern Chen
Keyword(s):  
Conceptual Framework ◽  
Conceptual Model ◽  
Tax Compliance ◽  
Economic Factors ◽  
Tax Structure ◽  
Tax Rate ◽  
Structure System ◽  
Sociological Factors ◽  
Goods And Services ◽  
Compliance Behaviour

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.

scholarly journals TAX STRUCTURE AND ECONOMIC GROWTH: DO DIFFERENCES IN INCOME LEVEL AND GOVERNMENT EFFECTIVENESS MATTER?

2018 ◽  
Vol 65 (01) ◽  
pp. 217-237 ◽  
Author(s):  
HALIT YANIKKAYA ◽  
TANER TURAN
Keyword(s):  
Low Income ◽  
Low Income Countries ◽  
Estimation Methods ◽  
Property Taxes ◽  
Tax Rates ◽  
Tax Structure ◽  
Tax Rate ◽  
Using Data ◽  
Positive Effect ◽  
Effect On Growth

We examine the effects of both overall tax rate and changes in tax structure on growth by using data for more than 100 high, middle, and low income countries by employing the GMM estimation methods. In general, our results do not support the argument that overall tax rates or changes in tax structure have a significant effect on growth. However, we find that a shift from income to consumption and property taxes leads to a positive and significant effect on growth rate while a shift from consumption and property taxes to income taxes has a positive effect for low-income countries.

scholarly journals EMPIRICAL INVESTIGATION OF TAX COMPLIANCE DETERMINANTS IN KATSINA STATE, NIGERIA

2020 ◽  
pp. 247-268
Author(s):  
Sani Rabiu ◽  
Daud Mustafa
Keyword(s):  
Peer Influence ◽  
National Development ◽  
Tax Compliance ◽  
Primary Source ◽  
Probit Model ◽  
Relevant Information ◽  
Policy Formulation ◽  
Policy Makers ◽  
Tax Rate ◽  
Multinomial Probit Model

Tax compliance is determined by many factors, which are categorized into social, economic, institutional, demographic and individual factors. In this regard, the main objective of this study is to empirically evaluate and understand tax compliance determinants usingdata generated from agro-allied industries in some selected local government areas of Katsina state, Nigeria. As such, primary source of data was employed through the use of structured questionnaire to collect relevant information from all the 133 agro-allied industries in the study area and multinomial probit model was adopted for estimation. Basically, the findings from this study indicate that tax rate, level of income, perception on government spending, change in government policy, simplicity of tax system and efficiency of the tax authority are significant determinants of tax compliance among agro-allied industries in the study area; whereas perception on equity and peer influence are insignificant determinants. In this connection therefore, the study recommends that government should ensure efficient allocation of public funds, in order to fiscally motivate taxpayers to develop compliance attitude. Also, policy formulation and implementation should physically be centered towards improving the quality of life of citizens, so as to improve taxpayers’ belief in policy makers thereby increasing the level of compliance. And finally, the tax authorities should be transparent and accountable in tax collection, which may result to positive compliance as well as increase in tax revenue yield for national development.

scholarly journals Analisis Faktor-Faktor Yang Mempengaruhi Kepatuhan Wajib Pajak Dalam Membayar Pajak Bumi Dan Bangunan

2020 ◽  
Vol 21 (01) ◽  
Author(s):  
Yuwita Ariessa Pravasanti
Keyword(s):  
Quantitative Research ◽  
Sampling Method ◽  
Linear Regression Analysis ◽  
Tax Compliance ◽  
Multiple Linear Regression Analysis ◽  
Primary Data ◽  
Significant Positive Effect ◽  
Factors Affecting ◽  
Positive Effect ◽  
Selection Of

This study aims to examine analysis of factors affecting on taxpayer compliance. This type of research includes quantitative research using primary data obtained directly by respondents using a questionnaire. The population in this study were all land and building taxpayers in Tawengan Village. The method used in the selection of samples is purposive sampling method using solvin formula and set samples based on criteria determined by researchers. Respondents in this study were 138 respondents. Based on the results of processing primary data (questionnaires) with multiple linear regression analysis methods, F test and t test known variables of taxation socialization, understanding taxation procedures, awareness of taxpayers and tax sanctions simultaneously significantly influence taxpayer compliance. Partially, this study shows that tax socialization and tax sanctions have a significant positive effect on tax compliance. While understanding taxation procedures and awareness of taxpayers does not have a significant influence on taxpayer compliance in paying land and building taxes

scholarly journals Albanian Individual Taxpayers Perceptions and Determinants on Ethical Behavior Regarding Tax Compliance

2021 ◽  
Vol 5 (1) ◽  
pp. 66-80
Author(s):  
Michael J. Salé ◽  
Oltiana Muharremi ◽  
Meleq Hoxhaj
Keyword(s):  
Informal Economy ◽  
Tax Evasion ◽  
Essential Element ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Analysis Data ◽  
Tax Rates ◽  
Factors Affecting ◽  
Logical Sequence ◽  
In The Beginning

Tax evasion and tax avoidance are among the most addressed topics in economic literature in recent years, as one of the most discussed issues in different countries. The research’s primary purpose is to present Albanian residents’ and taxpayers’ perceptions regarding tax evasion, tax avoidance, and tax compliance. The leading indicators used in this report, the attitude towards tax evasion and tax avoidance, rely on individual taxpayers’ perceptions and not on factual evidence such as the amount of income hidden from the tax authorities. Several studies have been done in different countries regarding the population’s perception regarding factors affecting evasion. In this paper, we investigated the following logical sequence: in the beginning, we provided an overview of the fiscal system and legislation, informal economy, and fiscal evasion in Albania. This analysis data was taken from reports from national and international organizations. After this, we analyzed data obtained from a survey issued to 387 taxpayer individuals in Albania. Our objective was to identify, using empirical analysis, factors that influence an individual’s ethical perception of tax avoidance and evasion. The statistical analyses we carried out in the paper were factor analyses and ordinal logistic linear regression analyses using the JMP statistical software. Based on the empirical research, we concluded that government policies positively correlate with taxpayers’ behavior regarding tax compliance. Among other determinants influencing tax evasion, we have evaluated that higher tax rates are an essential element. The results of the research can be helpful for governments and other policymakers’ institutions.

scholarly journals Factors Affecting Personal Tax Compliance With Sanctions as Moderating Variables (Empirical Study at Primary KPP North Bekasi)

2021 ◽  
Vol 1 (2) ◽  
pp. 47-64
Author(s):  
Sri Mulyati ◽  
Hadri Mulya
Keyword(s):  
Social Sciences ◽  
Data Collection ◽  
Empirical Study ◽  
Quantitative Method ◽  
Tax Compliance ◽  
Primary Data ◽  
Factors Affecting ◽  
Moderating Variables ◽  
The Social ◽  
Positive Effect

This research was conducted to examine the factors that influence individual taxpayer compliance with sanctions as a moderating variable. This research  was  conducted  at  the  Primary  Tax  Office  in  North  Bekasi.  Data collection techniques were carried out by distributing questionnaires as many as 170 respondents, but 5 respondents did not return the questionnaire and 165 respondents to the data conducted for the study. The  data  in this study  are primary  data  and  the  method used in  this research is quantitative method, using SPSS (Statistical Package for the Social Sciences version 22). The results of this study indicate that knowledge, tax awareness and tax environment have a positive effect on taxpayer compliance while sanctions as a moderating variable, it has no positive effect on taxpayer compliance.

scholarly journals ANALYSIS OF FACTORS AFFECTING TAX COMPLIANCE BY SMES IN KIAMBU COUNTY

2017 ◽  
Vol 1 (1) ◽  
pp. 60-72
Author(s):  
Simon Mbuguah ◽  
Prof. Mwambia Mwambia ◽  
Bernard Baimwera
Keyword(s):  
Tax Evasion ◽  
Survey Design ◽  
Tax Compliance ◽  
Modern Technology ◽  
Compliance Cost ◽  
Factors Affecting ◽  
Knowledge Requirements ◽  
The Government ◽  
Tax Holidays ◽  
Tax Payers

Purpose: The purpose of this study was to determine factors affecting tax compliance by Smesin Kiambu CountyMethodology: The study adopted descriptive survey design and the research. The study population was 1084Smes in Kiambu County where a sample size of 325Smes was selected. Data was collected through structured and unstructured Questionnaires. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results presented in frequency tables to show how the responses for the various questions posed to the respondents.Results: The study findings revealed that Non compliance opportunities, compliance cost, knowledge requirements and decision frames had a positive and significant effect on tax compliance. The study led to conclusion that the authorities had a weak capacity in detecting tax evasion, it was cheaper to bribe a tax official than pay full amount of tax, corrupt, fine and penalties deterred tax evasion and that degree of regulation deterred tax evasion, that tax system and rates affected the rate and amounts of tax evasion, nature and degree of regulations affected tax evasion, size and how the business was structured had a direct or indirect effect on tax evasion, location and focus of business affected tax evasion and that the type of business the tax payers were in affected tax evasion.Policy recommendation: The study recommended that the authorities should adopt high and modern technology to help in detecting tax evasion, proper measures should be emphasized on officials taking bribes, fines and penalties should be issued to those evading paying tax and that proper regulatory framework should be put in place to deter tax evasion and that the government should consider increasing tax incentives such as exemptions and tax holidays as these will not only encourage voluntary compliance but also attract investors who are potential viable tax payers in the future. 

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