scholarly journals Public Governance Quality and Tax Compliance Behavior in Nigeria: The Moderating Role of Financial Condition and Risk Preference

2011 ◽  
Vol 5 (1) ◽  
pp. 3 ◽  
Author(s):  
James O. Alabede ◽  
Zaimah Bt. Zainol Ariffin ◽  
Kamil Md Idris
Keyword(s):  
Tax Compliance ◽  
Risk Preference ◽  
Moderating Effect ◽  
Public Governance ◽  
Financial Condition ◽  
Compliance Behavior ◽  
Compliance Level ◽  
Governance Quality ◽  
And Behavior ◽  
The Relationship

To have better understanding of compliance behavior of individual taxpayers in developing countries especially Nigeria, this study is undertaken primarily to test relationship between taxpayers’ perception<br />about public governance quality and their compliance behavior as well as to<br />determine whether the relationship is moderated by financial condition and risk preference individually and jointly. This study involved a survey of individual taxpayers’ opinion, perception and behavior about public governance quality as well as tax compliance. The major finding of<br />this study is that public governance quality has significant positive relationship with tax compliance behavior. The study also indicates that risk preference has strong negative moderating effect on the relationship between public governance quality and tax compliance behavior.  Administration of income tax in Nigeria is characterized by low compliance level and therefore, there is no doubt that improvement in public governance quality would contribute significantly in reawakening the culture of tax compliance among individual taxpayers in Nigeria. Empirically, nothing much is known in tax compliance literature about the influence of<br />public governance quality on tax compliance behavior of individual taxpayers as well as the moderating effect of financial condition and risk preference on tax compliance and its determinants. This study extended tax compliance model to incorporate public governance quality and moderating effects of financial condition and risk preference.<br /><br />

Public governance quality and tax compliance behavior in developing countries

2019 ◽  
Vol 46 (3) ◽  
pp. 338-351 ◽  
Author(s):  
Mohammed Abdullahi Umar ◽  
Chek Derashid ◽  
Idawati Ibrahim ◽  
Zainol Bidin
Keyword(s):  
Developing Countries ◽  
Tax Compliance ◽  
Socioeconomic Conditions ◽  
Public Governance ◽  
Socioeconomic Condition ◽  
Content Type ◽  
Compliance Behavior ◽  
Governance Quality ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between public governance quality and tax compliance behavior in developing countries in terms of what transpires between governments and citizens, leading the later to pay or to abstain from paying tax. The study argues that socioeconomic condition is a mediator in the relationship and explains how and why it is so.Design/methodology/approachThis study adopts the conceptual approach and connects the concepts through synthesis of literature and previous research findings.FindingsThe study concludes that socioeconomic condition mediates the relationship between public governance quality and tax compliance behavior in developing countries. Socioeconomic conditions appear to be a broader, clearer and more practical concept for measurement purpose than public goods/spending as currently understood in the literature.Research limitations/implicationsThe study is a conceptual effort, and there may a be need to undertake further empirical investigations. Developing countries vary in their socioeconomic conditions, and there is a need to acknowledge country-specific circumstances.Practical implicationsThe implication of the finding includes the need for further research on the concept of socioeconomic condition, and how and why it influences tax compliance behavior in developing countries. Stakeholders and governments should monitor the impact of policies and actions on the socioeconomic condition of citizens to ensure they are satisfied. Their dissatisfaction leads to the boycott of the tax system which adversely affects economic development.Originality/valueThis study makes an original contribution by exploring socioeconomic conditions as a mediator between public governance quality and tax compliance behavior in developing countries. It is a significant contribution that is capable of shifting the direction of tax compliance research in developing countries due to its practical realities.

scholarly journals Perceived Service Orientation, Economic Factors, Psychological Factors and Tax Compliance: Evidence From Nigerian SMEs

2020 ◽  
Author(s):  
Augustine Ayuba ◽  
Natrah Saad ◽  
Zaimah Zainol Ariffin
Keyword(s):  
Psychological Factors ◽  
Tax Compliance ◽  
Moderating Effect ◽  
Probability Of Detection ◽  
Service Orientation ◽  
Tax Rates ◽  
Public Governance ◽  
Positive Effects ◽  
Tax Complexity ◽  
Governance Quality

This study examined the influence of economic and , psychological factors, as well as the moderating role of perceived service orientation on the tax compliance of Nigerian SMEs owners / managers. Three hundred and twenty one SME owners /managers participated in the survey. The Partial Least Squares (PLS) path modeling was employed to analyze the data. The results showed that the probability of detection, incentives, and the public governance quality had significant positive effects on tax compliance, while tax complexity had a significant negative effect on tax compliance. On the contrary, the results showed that tax rates and tax knowledge had no significant effect on tax compliance. Furthermore, the findings of the moderating effect revealed that perceived service orientation only moderated tax rates and incentives, while in moderating effect was discovered on the relationship between the probability of detection, tax complexity, tax knowledge and public governance quality. The implications for tax revenue authorities and other policy-makers were also discussed.  

An Examination of the Role of Ethics in Tax Compliance Decisions

2005 ◽  
Vol 27 (1) ◽  
pp. 39-72 ◽  
Author(s):  
B. Charlene Henderson ◽  
Steven E. Kaplan
Keyword(s):  
Tax Compliance ◽  
Ethical Beliefs ◽  
Ethical Orientations ◽  
Compliance Behavior ◽  
Proposed Model ◽  
Ethical Evaluations ◽  
Study Support ◽  
Compliance Decisions ◽  
The Relationship

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.

scholarly journals Pengaruh Pemahaman Peraturan Perpajakan Terhadap Kepatuhan WPOP Dengan Preferensi Resiko Sebagai Variabel Pemoderasi

2019 ◽  
pp. 109
Author(s):  
Putu Devi Ayu Utari ◽  
Putu Ery Setiawan
Keyword(s):  
Regression Analysis ◽  
Sampling Method ◽  
Tax Compliance ◽  
Risk Preference ◽  
The North ◽  
Analysis Technique ◽  
Minimum Number ◽  
Questionnaire Method ◽  
Relationship Of ◽  
The Relationship

Badung Utara, Badung Utara, Badung Utara. To find out whether the preference must be able to moderate the relationship between understanding of tax regulations on individual taxpayer regulations in the North Badung region. The minimum number of samples used in the study were 100 (one hundred) individual taxpayers at North Badung KPP Pratama. This study uses the accidential sampling method. The method of data collection uses the questionnaire method. The data analysis technique used is Moderated Regression Analysis (MRA). The results obtained related to understanding tax regulations, positive and significant to taxpayer obligations, as well as risk preferences can moderate the relationship of understanding tax regulations with taxpayer assistance. Keywords: Understanding of Taxes, Tax Compliance, Risk Preference.

scholarly journals ANALISIS KEPATUHAN WAJIB PAJAK HOTEL BERDASARKAN PEMERIKSAAN PAJAK, SANKSI PERPAJAKAN, KONDISI KEUANGAN DAN PREFERENSI RESIKO PADA HOTEL-HOTEL YANG TERDAFTAR DI BAPPENDA KABUPATEN BOGOR

2017 ◽  
Vol 3 (2) ◽  
pp. 11
Author(s):  
Ade Budi Setiawan ◽  
Siti Meliana
Keyword(s):  
Regression Analysis ◽  
Sampling Method ◽  
Linear Regression Analysis ◽  
Tax Compliance ◽  
Risk Preference ◽  
Multiple Linear Regression Analysis ◽  
Positive Influence ◽  
Tax Revenue ◽  
Financial Condition ◽  
Tax Audit

This research was aims to determine the influence of tax audit, tax penalties, financial condition and risk preference on tax compliance in paying taxes hotels at BAPPEDA (Revenue Service), Bogor. The population in this study are all registered taxpayer hotels in BAPPEDA (Revenue Service), Bogor .The sampling method used in this research is purposive sampling with criteria are accounting staff and tax professional of tax compliance in taxpayers hotels, who can’t reach tax revenue targets during 2014-2015. The datas in this study was obtained by distributing questionnaires to 52 respondents on tax compliance in taxpayer hotels in Bogor City. This study was tested by using multiple linear regression analysis with SPSS 20.00 for windows. Based on the analysis result, it can be concluded that tax audit, tax penalties and financial condition had positive influence on tax compliance in taxpayer hotels at BAPPENDA (Revenue Service), Bogor. While risk preference, hasn’t influence on tax compliance in taxpayer hotels at BAPPENDA (Revenue Service), Bogor.Keyword : Tax Audit, Tax Penalties, Financial Condition, Risk Preference, Tax Compliance, Hotels Taxpayer

scholarly journals HUBUNGAN SELF ASSESMENT SYSTEM DENGAN TINGKAT KEPATUHAN WAJIB PAJAK PADA KANTOR PELAYANAN PAJAK PRATAMA ARGAMAKMUR PROVINSI BENGKULU

2018 ◽  
Vol 6 (2) ◽  
Author(s):  
Karona Cahya Susena ◽  
Suwarni Suwarni ◽  
Joko Widianto
Keyword(s):  
Rank Correlation ◽  
Tax Compliance ◽  
Assessment System ◽  
The Self ◽  
Spearman Rank Correlation ◽  
Self Assessment ◽  
Compliance Level ◽  
Average Distribution ◽  
Relationship Of ◽  
The Relationship

The purpose of this study was to determine the relationship of tax collection with the self assessment system with the level of taxpayer compliance in the Kantor Pelayanan Pajak Pratama Argamakmur Provinsi Bengkulu. The analytical methods used are Average Distribution, Spearman Rank Correlation and Hypothesis Testing. Based on the results of the analysis that has been done, it is known that the value of rho (count) is 0.755 in the interval of interpretation of the correlation of 0.600-0.799, a strong level of relationship. This means that the relationship between the self assessment system and the level of tax compliance at the Kantor Pelayanan Pajak Pratama Argamakmur Provinsi Bengkulu is strong and the value of rho (count) is 0.755> 0.364 rho (table) so that Ho is rejected and Ha is accepted, meaning that there is a significant relationship between the self assessment system with taxpayer compliance level at the Kantor Pelayanan Pajak Pratama Argamakmur Provinsi Bengkulu.

scholarly journals PENGARUH PENGETAHUAN PERPAJAKAN TERHADAP KEPATUHAN PAJAK PADA SELF ASSESSMENT SYSTEM DI INDONESIA

2021 ◽  
Vol 16 (1) ◽  
pp. 133
Author(s):  
Arif Nugrahanto
Keyword(s):  
Statistical Tests ◽  
Tax Compliance ◽  
Influential Factors ◽  
Assessment System ◽  
Tax Revenue ◽  
Linear Regression Method ◽  
Self Assessment ◽  
Compliance Behavior ◽  
The Government ◽  
The Relationship

<p><em>In the last few decade, the government still faces the problem of low tax revenue. The low level of tax compliance is an issue that is often discussed. In the self-assessment system, the responsibility for fulfilling tax obligations lies in the taxpayer side then the knowledge and comprehension of taxation matter is very substantial. This study aims to identify the relationship between tax knowledge and tax compliance behavior. Furthermore, it also attempts to map the situation of tax knowledge and tax compliance behavior in Indonesian. Through statistical tests with the multiple linear regression method based on a survey involving 260 respondents at a national scale, it is found that knowledge related to tax regulations significantly has influenced tax compliance behavior. Moreover, stepwise regression has identified the two most influential factors, there are knowledge of tax objects and knowledge of tax penalties. In addition, the t-test and MANOVA test prove that the ownership of NPWP, education level, occupation, and income significantly influence the tax knowledge.</em></p>

scholarly journals Dampak Moderasi Moral Perpajakan pada Hubungan Perceived Probability of Audit dan Sanksi terhadap Perilaku Kepatuhan Pajak Usaha Mikro, Kecil dan Menengah (UMKM)

2019 ◽  
Vol 4 (1) ◽  
pp. 69-78
Author(s):  
Riri Zelmiyanti ◽  
Eko Suwardi
Keyword(s):  
Regression Analysis ◽  
Tax Compliance ◽  
Research Data ◽  
Moderating Effect ◽  
Economic Factors ◽  
Analysis Tool ◽  
Behavioral Factors ◽  
The Relationship ◽  
Survey Questionnaires ◽  
Perceived Probability

This study aims to explore more carefully and in detail the influence of economic factors (perceived probability of audits and sanctions) and behavioral factors (moral) of the tax compliance of SMEs in Indonesia. Research on tax compliance has been done, but still a bit that combines economic and behavioral factors. Previous research mostly done on large companies and to individual taxpayers. The current study was conducted on SME entrepreneurs. This study tried to moderate the tax morale in relation to perceived probability of audits and sanctions against tax compliance. Samples in this study were individual taxpayers from SMEs in Yogyakarta. The research data was collected through a survey. Questionnaires had been processed in this study were around 118 questionnaires. Testing the hypothesis in this study used multiple regression analysis and analysis regression moderated. Regression analysis tool used is IBM SPSS 19.0. The results of this study indicate that the perceived probability of audits and sanctions have a direct impact on tax compliance. This study was not able to prove the moral moderating effect of taxation on the relationship perceived probability of an audit of tax compliance. This study also can not prove the moral moderating effect of taxation on the relationship sanctions on tax compliance.

scholarly journals Pengaruh Pemahaman Peraturan Perpajakan Terhadap Kepatuhan Wajib Pajak Dengan Preferensi Risiko Sebagai Variabel Moderasi

2020 ◽  
Vol 2 (2) ◽  
pp. 2613-2619
Author(s):  
Bima Perdana Putra ◽  
Henri Agustin ◽  
Mia Angelina Setiawan
Keyword(s):  
Regression Model ◽  
Tax Compliance ◽  
Risk Preference ◽  
Model Analysis ◽  
The Relationship ◽  
The City ◽  
Positive Effect

This study aims to see the effect of tax knowledge to taxpayer compliance with risk preference as a moderating variable. The sample in this study are taxpayer in the city of Padang as much as 156 sample. The analysis was done by using moderating regression model analysis. The results of this study indicate that: (1) tax knowledge has positive effect on the taxpayer compliance. (2) risk preference are able to moderate the relationship between tax knowledge to tax compliance

scholarly journals Influence of Tax Knowledge and Tax Complexity on Compliance Behavior Among Sole-Proprietors

2021 ◽  
Vol 11 (1) ◽  
pp. 71-81
Author(s):  
Nur Arina Inani Yahya ◽  
Noor Suhaila Shaharuddin ◽  
Noor Raudhiah Abu Bakar
Keyword(s):  
Important Determinant ◽  
Tax Compliance ◽  
Contributing Factors ◽  
Compliance Behavior ◽  
Compliance Level ◽  
Tax Complexity ◽  
The Government ◽  
Almost All ◽  
Perceived Complexity ◽  
Compliance Behaviour

Tax noncompliance is widely believed as a major concern for all tax administration in almost all countries. This issue calls for serious attention as the problem of noncompliance will cause losses of current income to the government. Studies on tax compliance have found that the compliance levels of sole proprietor are likely to be considerably low compared to other groups of taxpayers. Despite having the least compliance level, little is known about their taxpaying behaviour towards tax compliance. Various factors influencing tax compliance have been discussed in a previous study, but tax knowledge and tax complexity were the most important determinant among sole proprietors. Thus, this study aims to examine taxpayers' views on their level of tax knowledge and perceived complexity of the income tax system. The data was collected through Google Form that were distributed to sole proprietors who run the small business activities. The results revealed that tax knowledge and tax complexity are viewed as contributing factors towards non-compliance behaviour among sole proprietors. The finding of this study may be of interest to revenue bodies for addressing tax compliance issues. In ensuring the success of the revenue process, the collaboration between the tax authority and tax researchers is important to further understand the taxpayers’ compliance behaviour. Isu pematuhan cukai merupakan kebimbangan utama bagi semua pentadbir cukai hampir semua negara. Isu ini memerlukan perhatian yang serius kerana masalah ketidakpatuhan cukai akan mengakibatkan kerugian pada pendapatan negara. Kajian ke atas pematuhan cukai mendapati bahawa tahap pematuhan cukai di kalangan pemilikan tunggal adalah lebih rendah berbanding dengan pembayar-pembayar cukai yang lain. Walaupun mereka sering dikatakan mempunyai tahap pematuhan cukai yang rendah, namun sedikit sahaja kajian dilakukan tentang sikap terhadap tingkahlaku pematuhan cukai. Pelbagai faktor yang mempengaruhi pematuhan cukai telah dibahas dalam kajian sebelumnya, tetapi pengetahuan dan kerumitan cukai adalah penentu yang paling penting di kalangan pemilikan tunggal. Justeru kajian ini bertujuan menentukan pengaruh pengetahuan cukai dan tahap kerumitan cukai terhadap ketidakpatuhan cukai. Data kajian dikumpulkan melalui Google Form yang diedarkan kepada pemilik tunggal yang menjalankan aktiviti perniagaan secara kecil-kecilan. Hasil kajian menunjukkan bahawa pengetahuan dan kerumitan cukai dilihat sebagai faktor penyumbang terhadap tingkah laku ketidakpatuhan di kalangan pemilik tunggal. Dapatan kajian ini diharap dapat membantu pihak berkuasa dalam menangani isu ketidapatuhan cukai. Walaubagaimanapun, bagi memastikan proses pemungutan cukai berjalan dengan baik, pihak berkuasa percukaian dan penyelidik perlu bekerjasama untuk lebih memahami isu-isu pematuhan cukai.

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