scholarly journals The Income Tax Compliance Cost of Large and Mid-Size Businesses

2002 ◽  
Author(s):  
Joel B. Slemrod ◽  
Varsha Venkatesh
Keyword(s):  
Income Tax ◽  
Tax Compliance ◽  
Compliance Cost

scholarly journals Income Tax Compliance Cost of Corporations in India, 2000–01

2006 ◽  
Vol 31 (4) ◽  
pp. 9-30
Author(s):  
Arindam Das-Gupta
Keyword(s):  
Cash Flow ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Compliance ◽  
Postal Survey ◽  
Legal Compliance ◽  
Compliance Cost ◽  
Convenience Sample ◽  
Compliance Costs ◽  
Corporation Tax

This is the first study of compliance costs of income taxation of corporations in India. Compliance costs are the costs of meeting obligations under the income tax law and in planning to save taxes. Opportunity costs such as when tax refunds are delayed are also included. Social compliance costs, gross versus net private costs, and mandatory versus voluntary cost can be distinguished. Gross private compliance costs include both legal and illegal expenses (such as bribes paid), employee costs, the cost of tax advice, and also other non-labour expenses. Estimates in this paper are for the year 2000-01 based on a postal survey of 45 companies throughout India in August-September 2001. Estimated gross compliance costs, excluding bribe costs, are between 5.6 and 14.5 per cent of corporation tax revenues. These are similar to estimates for other countries near the lower limit but are a cause for concern near the upper limit. Tax deductibility of legal expenses and cash flow benefits from the timing difference between taxable income and payment of tax result in net compliance costs between minus 0.7 and plus 0.6 per cent of corporation tax revenue. Both gross and net compliance costs are regressive. Among other findings, five are noteworthy: First, around 25 per cent of sampled companies knowingly paid excess tax (median value: 46%) since tax evasion penalty cannot be levied under Indian law if assessed taxes have already been paid. Second, 70 per cent of companies, especially small companies, used external assistance to prepare tax returns accounting for 39 per cent of the legal compliance costs. Third, voluntary costs associated with tax planning contribute 19 to 43 per cent of total compliance costs. Fourth, the average sample company had 10 to 11 assessment years locked in disputes for tax or penalty in addition to around two years for which assessments were incomplete. Statistical analysis suggested that one extra disputed assessment year raises legal compliance costs by 5.7 per cent. Fifth, it was found to be fairly common for incorrect application of tax laws by tax officials in areas where they have high discretion to cause tax assessments to be revisited. Among reform suggestions is streamlining of 22 legal and procedural �hot spots� which add to compliance costs. Since the response rate was a disappointing 1.15 per cent, the stratified random sample design degenerated into a convenience sample with over-representation of large firms and under-representation of loss-making and zero-profit companies. Therefore, results should be viewed as preliminary and tentative. Other problems are that there were only qualitative questions about in-house cost components; assumed opportunity cost of funds to value cash flow benefits were used; and, as in earlier studies, there can possibly be a bias due to incorrect apportionment of fixed costs and the value of time of company management

scholarly journals The Income Tax Compliance Cost of Corporations in India, 2000-01

2003 ◽  
Author(s):  
Arindam Das-Gupta
Keyword(s):  
Income Tax ◽  
Tax Compliance ◽  
Compliance Cost

scholarly journals The Income Tax Compliance Cost of Big Business

1996 ◽  
Vol 24 (4) ◽  
pp. 411-438 ◽  
Author(s):  
Joel B. Slemrod ◽  
Marsha Blumenthal
Keyword(s):  
Income Tax ◽  
Tax Compliance ◽  
Compliance Cost ◽  
Big Business

Analisis Manajemen Pajak Pada Industri Penyedia Jasa Telekomunikasi

2010 ◽  
Vol 2 (1) ◽  
pp. 57-69
Author(s):  
Iim Ibrahim Nur
Keyword(s):  
Income Tax ◽  
Tax Compliance ◽  
Transformation Method ◽  
Tax Burden ◽  
Tax Allowance ◽  
Straight Line ◽  
Tax Management ◽  
Family Gathering ◽  
Straight Line Method ◽  
Depreciation Methods

Tax Management must be done throughout the company’s activities. In principle, tax management can be done via good tax compliance and minimizing tax burden. The latter can be achieved by transforming non-deductible expenses into deductible expenses. For example, PT Nyambung Teruuusss Tbk. (PT. NT) must change income Tax Art. 21 paid by the company into tax allowance with gross-up method, pooling company's cars at the office instead of letting these cars brought home by the employees, outbound training for employees instead of family gathering, and other methods including converting fringe benefits into allowance. Another method to minimize tax burden is to change depreciation methods into double-declining method instead of straight-line method. With nondeductible transformation method have saved PT NT Rp 5.26 billion of corporate income tax, while depreciation methods transformation is predicted to save the company Rp 735.66 billion for an eightyear period

Mr. and Mrs. Smith: A Student Introduction to Federal Tax Compliance and Documentation

2015 ◽  
Vol 31 (1) ◽  
pp. 119-132 ◽  
Author(s):  
Michaele L. Morrow ◽  
Shane R. Stinson
Keyword(s):  
Communication Skills ◽  
Professional Practice ◽  
Income Tax ◽  
Tax Compliance ◽  
Personal Income Tax ◽  
Initial Information ◽  
Face To Face ◽  
Client Advocacy ◽  
Tax Practice

ABSTRACT In this case, students assume the role of new accounting staff tasked with the preparation of a personal income tax return and supporting documentation for a client of their firm. Students are provided prior year work papers and client communications, a copy of the prior year's tax return, as well as a letter and supporting documents from the client for the current year. To complete the case, students generate questions based on the initial information provided, meet face-to-face with the client, and roll forward a set of electronic work papers before submitting a complete current year engagement file for senior review. This case adds work papers and client interaction to the traditional tax compliance case to reinforce both the technical and communication skills valued in professional practice. The formulation of questions for the client also allows students to practice discussing technical topics in a non-technical manner and underscores the required balance between attitudes of client advocacy stressed in professional tax practice and legal requirements for “good-faith” tax return reporting. This case is appropriate for an individual income tax course at either the undergraduate or graduate level, and can be easily adapted to increase or decrease difficulty.

Determinants of Personal Income Tax Compliance: Perception of Nigerian Tax Payers

2015 ◽  
Author(s):  
Edosa Joshua Aronmwan ◽  
Ehichioya Imobhio ◽  
Famous Izedonmi
Keyword(s):  
Income Tax ◽  
Tax Compliance ◽  
Personal Income ◽  
Personal Income Tax ◽  
Tax Payers

scholarly journals The Influence of Tax Education on Obeying Tax Liability: A Statistical Methods and Results

2020 ◽  
pp. 38-52
Author(s):  
Tizazu Toma Shamana ◽  
Woldeselassie Azige Alito
Keyword(s):  
Direct Cost ◽  
Income Tax ◽  
Tax Compliance ◽  
Value Added ◽  
Simple Random Sampling ◽  
Survey Study ◽  
Before And After ◽  
Tax Education ◽  
Business Income ◽  
Wolaita Sodo

Backgrounds: In Ethiopia, taxpayers are categorized as small, medium or large depending on their business turnover or levels of income. Irrespective of one's category, taxpayers in Ethiopia, particularly Wolaita Sodo town are required to comply with VAT, TOT, Income Tax, Withholding Taxes and Customs duties in equal measure. Taxpayers will readily accept any new system introduced if they have ample knowledge to understand the system. Thus, education programs organized by custom and duty authority or public education institutions are required to enhance taxpayers' ability to understand the importance of tax on country's economic development and to increase their confidence in fulfilling their responsibilities as taxpayers. By considering the above issues, the researcher interested to investigate the influence of tax education on tax compliance attitude of taxpayers by conducting an experiment on the taxpayer in Wolaita Sodo town. The general objective of the study was to investigate the influence of tax education on tax compliance in Wolaita Sodo town. Methods: The target population for the survey study was actual taxpayers who are subject for business income tax. Only unincorporated business taxpayers in Wolaiata Sodo town are used as participants in the survey study. The target total population is 11,278 business income taxpayers as of July 2017 which is categorized under A, B and C. Only 160 taxpayers were selected by using simple random sampling from Wolaiata Sodo town. Questions regarding employment income, business income, turn over tax, and excise and value-added taxes are asked. Respondents are also asked to state whether the direct cost of producing the income, such as the direct cost of manufacturing, purchasing and selling costs shall be deductible from gross income in calculating taxable business income. Before and after the experiment (tax education) respondents were asked to check whether they know basic taxation rules. And their marks scored for the 7 basic questions after and before tax education out of 50 marks are recorded. Results: Majority of the respondents after attending the tax course scored high value regarding the tax knowledge. There is a great difference between the tax compliance attitude of these respondents before and after attending the tax course. Before attending the tax course, majority of respondents showed the plan of not complying with tax laws. But after attending the tax course, the majority of the respondents proves the identification of taxable and non-taxable income types. Generally, it resulted that the tax knowledge of respondents is improved after attending the tax course.

scholarly journals Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance

BESTUUR ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 59
Author(s):  
Siti Rahma Novikasari ◽  
Duc Quang Ly ◽  
Kerry Gershaneck
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Legal Compliance ◽  
The Government ◽  
Medium Enterprises ◽  
Compliance Constraints

<p>Government Regulation No. 46/2013 has not been optimal in providing legal compliance on taxation for Micro, Small, and Medium Enterprises (MSMEs), especially in Yogyakarta. This policy was evaluated and amended with Government Regulation No. 23/2018. The amendment in tax policy for MSME actors was this research background to examine: First, how does the final income tax policy impact MSME taxpayers' compliance in Yogyakarta? Second, what are the legal compliance constraints of MSME taxpayers? The method used in this research was a juridical empirical, supported with the statute and conceptual approach. The results showed that the amendment in the final income tax tariff policy from 1% to 0.5%, as well as provide legal certainty of the timeframe of taxation had a positive impact on increasing taxpayer compliance. There was an increase in the number of taxpayers to 41,000 in 2019, or an increase of 15.5% compared to the number of taxpayers in 2017. However, tariff reduction has not been the answer to taxpayer non-compliance, the Regional Office of the Directorate General of Taxes of the Special Region of Yogyakarta still found tax avoidance. Tax compliance constraints were also caused by taxpayers' distrust of the government, poor tax morale, and tax knowledge. The government needs to conduct a cooperative compliance approach in taxation policies based on trust and dialogue between taxpayers and the government to improve MSME taxpayer compliance.</p><p><strong>Keywords:</strong> Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.</p>

scholarly journals KEPATUHAN WAJIB PAJAK MEMEDIASI DETERMINAN PENERIMAAN PAJAK PENGHASILAN

2017 ◽  
Vol 21 (2) ◽  
pp. 318
Author(s):  
Rachmawati Meita Oktaviani ◽  
Pancawati Hardiningsih ◽  
Ceacilia Srimindari
Keyword(s):  
Income Tax ◽  
Tax Compliance ◽  
Sampling Technique ◽  
Survey Method ◽  
Tax Revenue ◽  
Factors Affecting ◽  
Independent Variables ◽  
Tax Revenues ◽  
The Relationship ◽  
Income Tax Revenue

This study aims to examine and analyze the factors affecting income tax revenues with tax compliance as an intervening variable. The study consists of three independent variables that tax penalties, the service tax authorities, and awareness of the taxpayer. While this research is tied in income tax revenues and intervening variable is tax compliance.This study used purpose sampling technique and survey method with questionnaires in collecting data. Respondent were sampled in this study is an individual taxpayer who performs is 120 respondent in Semarang. Research data analysis using multiple analysis with the path analysis.The results showed that the variable tax penalties and service tax authorities an effect on tax compliance, awareness taxpayer has no effect on tax compliance, tax penalties, awareness of taxpayers and taxpayer compliance effect on income tax revenue, the service tax authorities had no effect on tax revenue income. Tax compliance successfully mediate the relationship between the variables of service tax authorities against income tax revenue. Tax compliance  not successfully mediate the relationship between the tax penalties and awareness taxpayer against income tax revenue.

scholarly journals Covid-19 and corporate tax avoidance: Measuring long-run tax burdens as an alternative bailout test

2021 ◽  
Vol 4 (3) ◽  
pp. 216-244
Author(s):  
Subagio Efendi
Keyword(s):  
Financial Aid ◽  
Income Tax ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Total Sample ◽  
Ordinary Least Squares ◽  
Corporate Tax ◽  
Long Run ◽  
Tax Returns ◽  
Avoidance Measures

This study fills the gap in the tax authority’s Covid-19 financial aid verifications by examining, and nominating, Long-run ETR (Dyreng et al., 2008) as the better corporate tax avoidance measure in excluding tax evader firms from the broad stimulus programs. Analysing confidential tax returns of 4,752 largest firms (32,120 firm-years) in Indonesia over 2009 to 2017 periods, this study found 18.12 percent of total sample firms is able to retain its Long-run ETR below 10 percent, which indicates continual tax avoidance activities by these firms during observation periods. Moreover, applying univariate and multivariate Ordinary Least Squares and Panel Data estimations, this study reveals, relative to other tax avoidance measures, Lagged Cash ETR (Lisowsky, 2010; Lisowsky et al., 2013) present the most consistent reliability in predicting long-run income tax burdens. Thus, this study asserts, in the conditions of computing Long-run ETR is costly and impractical (i.e. because of data unavailability), tax authority and policymakers can directly analyse firms’ Lagged Cash ETR to gauge their long-run income tax burdens and tax compliance behaviours prior the economic downturn. 

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