Determinants of Tax Non-Compliance among Small and Medium Enterprises in Zimbabwe

Small and medium-scale enterprises (SMEs) are recognized global for being the backbone of the economy through; economic advancement; innovation, wealth generation and furthering growth. SMEs have a high tax non compliance rate which hinders the development they bring to many economies. This paper aims to establish the major determinants of tax non-compliance among SMEs in the Zimbabwean economy. The survey research design was used and the SMEs operating in the Bulawayo provincewere considered as the sample of the study. The stratified random sampling technique was adopted in eliciting information and questionnaires were administered in the collection of data from the respondents. 187 questionnaires were issued out and 150 were returned. Regression analysis was used to establish the relationship that exists between tax non-compliance and the predictive variables, using SPSS ver. 22. The study revealed that poor follow-up strategy and lack of a tax audit, high tax rates, financial constraints, abuse of public funds by authorities and tax education as the major determinants. SME operators should apply modern business survival strategies so as to counter financial constraints. ZIMRA should maintain a database for SMEs for tax audit purposes; intensify follow-up strategies, increase tax audits and increase tax support services to SMEs. The government should consider reducing tax rates (which are perceived to be too high) as they promote tax evasion and failure among SMEs.

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Determinants of Tax Non-Compliance among Small and Medium Enterprises in Zimbabwe

Journal of Economics and Behavioral Studies ◽

10.22610/jebs.v9i4.1837 ◽

2017 ◽

Vol 9 (4) ◽

pp. 242 ◽

Cited By ~ 1

Author(s):

Banele Dlamini

Keyword(s):

Tax Evasion ◽

Financial Constraints ◽

Small And Medium Enterprises ◽

Compliance Rate ◽

Sampling Technique ◽

Survival Strategies ◽

Tax Rates ◽

Tax Audit ◽

The Government

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ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI PERSEPSI WAJIB PAJAK ATAS PENGGELAPAN PAJAK

Jurnal Akuntansi ◽

10.46806/ja.v8i1.574 ◽

2019 ◽

Vol 8 (1) ◽

Author(s):

Gracia Emanuella Valentina, Amelia Sandra

Keyword(s):

Tax Evasion ◽

Small And Medium Enterprises ◽

Hypothesis Test ◽

Multiple Linear Regression Model ◽

Sampling Technique ◽

Assessment System ◽

Self Assessment ◽

Analysis Technique ◽

The Government ◽

Medium Enterprises

Tax is one of the main sources of income and expenditure for the nation of Indonesia. Therefore, every year the Government of Indonesia always tries to increase the amount of tax revenue. However, what happens is there are still some Taxpayers who seek to reduce the amount of tax payable by tax evasion. Tax evasion is an attempt to lighten the tax burden by violating existing laws. Meanwhile, this study aims to determine whether the factors such as equity, Self Assessment System, and service of the tax authorities affect the taxpayer's perception of tax evasion. The data obtained came from a questionnaire filled by 100 Individual Taxpayers Entrepreneurs in the field of Micro, Small and Medium Enterprises in the area of Kelapa Gading. The sampling technique used is Purposive Sampling, while the data analysis technique consists of descriptive statistics, data quality test, classical assumption test, hypothesis test, and multiple linear regression model analysis. The result of this research indicate that equity and service of the tax authorities influence to taxpayer perception on tax evasion, while Self Assessment System has no effect to taxpayer perception on tax evasionKeywords: Equity, Self Assessment System, Service of The Tax Authorities, and Tax Evasion

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MICRO, SMALL, AND MEDIUM ENTERPRISES TAXPAYER PERCEPTION ON THE DETERMINATION OF FINAL INCOME TAX POLICY ACCORDING TO GOVERNMENT REGULATION NUMBER 23 YEAR OF 2018

International Journal of Law, Government and Communication ◽

10.35631/ijlgc.4150018 ◽

2019 ◽

pp. 174-182

Author(s):

Lina Said

Keyword(s):

Income Tax ◽

Government Regulation ◽

Small And Medium Enterprises ◽

Descriptive Analysis ◽

Tax Rates ◽

Income Tax Policy ◽

The Government ◽

Knitting Industry ◽

Medium Enterprises

The Government has issued a new provision on Income Tax on Micro, Small, and Medium Enterprises (MSMEs), namely Government Regulation Number 23 the Year of 2018 about Income Tax Of Businesses Received or Obtained by Taxpayers Who Have Certain Gross Circulation, effective from 1st July 2018. The Government Regulation revokes Government Regulation Number 46 the year 2013 which has been effective for five years since its enactment on 1st July 2013. This new regulation is considered very important, especially for MSMEs because it regulates the reduction in final income tax rates for MSMEs with a turnover of maximum Rp. 4.8 billion per year, to 0,5% originally 1% (Government Regulation No.46/2013). The method used is descriptive analysis with a quantitative approach using questionnaires with respondents are MSMEs taxpayers in the knitting industry. The results of the research show that in general, knitting industry MSMEs do not know and understand about the implementation of Government Regulation Number 23 the Year of 2018. Taxpayer's perception of fairness is at 3.04, Certainty at 3.14, Convenience 3.20, and Economy/Efficiency 3.50.

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DAMPAK PERLAKUAN PERATURAN PEMERINTAH NOMOR 46 TAHUN 2013 ATAS PAJAK PENGHASILAN PADA UMKM DI GRESIK

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v5i2.2859 ◽

2014 ◽

Vol 5 (2) ◽

pp. 195

Author(s):

Faiqotul Ilmia ◽

Sri Andriani

Keyword(s):

Income Tax ◽

Government Regulation ◽

Small And Medium Enterprises ◽

Tax Rates ◽

Net Income ◽

Directorate General ◽

Qualitative Descriptive ◽

The Government ◽

Medium Enterprises ◽

The Impact

In achieving the desired development by Indonesia, the government requires revenue from the State Tax Revenue and Non-Tax Revenues. One of the efforts undertaken by the Directorate General of Taxation (DGT) is enacted Government Regulation No. 46 of 2013, the tax base used is the gross turnover of each month at 1 % final income tax rates. The emergence of these regulations is to provide convenience for taxpayers in determining the amount of income tax payable, but enactment of these rules in the middle of giving trouble for taxpayers in the calculation, depositing and reporting taxes for the year 2013. Purpose of this study was to determine the impact of treatment of PP 46 of 2013 on income tax on Micro, Small and Medium Enterprises (SMEs) in Gresik skull cap industry. This study used a qualitative descriptive approach with the aim of obtaining a picture of the object that is easily observed in the form of words on the focus of research on the impact of the enactment of Regulation 46 of 2013. The 3 (three) object of research is no skull cap Industry SMEs in Gresik . Data analysis aims to simplify the data processed, making it easy to read and interpret. Data were collected by means of observation, interviews, documentation. Analysis of the data through three stages: data reduction, data display, and conclusion. The results showed that the enactment of Regulation 46 of 2013 not only creates difficulties in terms of computation, depositing and reporting just as effective mid-year, but still there who do not know the regulations in terms of both has been the enactment of these regulations and in terms of the calculation mechanism. As for other effects of the government’s enactment of legislation, namely the amount of income tax payable is higher than the income tax calculations using norm bookkeeping or net income.

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Misalignment In The Growth-Maximizing Policies Under Alternative Assumptions Of Tax Evasion

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v26i3.295 ◽

2010 ◽

Vol 26 (3) ◽

Cited By ~ 2

Author(s):

Rangan Gupta ◽

Emmanuel Ziramba

Keyword(s):

Tax Evasion ◽

Overlapping Generations ◽

Tax Rates ◽

Reserve Requirements ◽

Behavioral Decision ◽

Endogenous Growth Model ◽

The Government ◽

State Growth ◽

Government Transfers

Using an overlapping generations monetary endogenous growth model, we analyze the possible misalignment in the growth-maximizing policies if tax evasion is assumed to be exogenous instead of being treated as a behavioral decision of the agents. By allowing for government transfers to affect young-age income, and, hence, a role for monetary policy, besides fiscal policy, in the determination of the agents reported income, we show that the failure on part of the government to realize tax evasion as endogenous, results in higher tax rates, reserve requirements and money growth rate. This, in turn, implies that the economy would end up experiencing lower (higher) steady-state growth (inflation).

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TAXATION SYSTEM OF UZBEKISTAN: INFLUENCE OF TAX REFORMS ON SMALL ENTERPRISES

European Journal of Business and Economics ◽

10.12955/ejbe.v3i0.113 ◽

2011 ◽

Vol 3 ◽

Cited By ~ 1

Author(s):

Makhamadali Dekhanov

Keyword(s):

Tax Policy ◽

Small And Medium Enterprises ◽

Small Enterprises ◽

Tax Rates ◽

Tax Reforms ◽

Single Tax ◽

Business Conditions ◽

The Government ◽

Medium Enterprises ◽

Taxation System

The problems of SME development and high tax rates have always been one of the most important social problems in any state. In recent years the taxation issue has gained a very big importance from the government policymakers. Politicians suggest further decrease of tax rates for small and medium enterprises and also improvement of single tax policy. This paper is dedicated to the analysis of influence of tax reforms on small enterprises in Uzbekistan.. Particularly it analysis how single tax effects the development and functioning of the SMEs. The base hypothesis used in this research paper is Laffer’ hypothesis, which states that decrease of tax rates will encourage the development of the enterprises and will raise more government revenues. This effect will be achieved through better business conditions, which ensures the financial sustainability of the business. Another point is the lower avoidance rate, where enterprises will not be more needed to hide their revenues and avoid taxes.The research results showed that implementation of lower tax rates and single tax policy, positively effect the development of the SME sector. Despite the policies and actions taken by government authorities, there is still space for improvements.

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FACTORS THAT AFFECT TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES (SMES) IN LUSAKA, ZAMBIA

Journal of Accounting ◽

10.47941/jacc.415 ◽

2020 ◽

Vol 3 (1) ◽

pp. 1-14

Author(s):

Mazwi Thabani ◽

Dr. Eng Kasongo Mwale Richard

Keyword(s):

Small And Medium Enterprises ◽

Tax Compliance ◽

Lower Percentage ◽

Tax Rates ◽

The Government ◽

Tax Holidays ◽

The One ◽

Microsoft Office ◽

Medium Enterprises ◽

Tax Payers

Purpose: Tax is an important stream of revenue for government’s development projects. However, tax compliance among SMEs is poor. Therefore, this study was conducted using SMEs in Lusaka, Zambia to evaluate and rank the factors that encourage non-compliance with tax obligation by SMEs.Methodology: The data analysis was done with the help of the statistical package for service solution (SPSS) and this hypothesis was tested with Microsoft Office Excel 2007 using the one sample z-test computed from the figures obtained in the summary statistics table.Findings: It was found that high tax rates and complex filing procedures are the most crucial factors causing non-compliance of SMEs. Other factors like multiple taxation and lack of proper enlightenment affect tax compliance among the SMEs interviewed only to a lesser extent.Unique contribution to theory, practice and policy: It is recommended that SMEs should be levied lower percentage of taxes to allow enough funds for business development and better chances of survival in a competitive market. The government should also 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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Assessing the effect of the COVID-19 pandemic on the government revenues: a study on individual taxpayers of Bangladesh

Naukovyi Visnyk Natsionalnoho Hirnychoho Universytetu ◽

10.33271/nvngu/2021-5/154 ◽

2020 ◽

pp. 154-159

Author(s):

M. R Islam ◽

S Suraiya ◽

N. M Zayed ◽

K. B. M. R Hasan ◽

M. S Bipasha ◽

...

Keyword(s):

Tax Evasion ◽

Research Result ◽

Sampling Technique ◽

Mean Value ◽

Government Revenue ◽

Tax Collection ◽

Revenue Collection ◽

Regressive Tax ◽

The Rich ◽

The Government

Purpose. The purpose of the study includes analyzing the effects of the Coronavirus pandemic on the taxpaying ability of individual taxpayers of Bangladesh and its subsequent impact on the government revenue collection; analyzing the factors related to the taxpaying ability like the situation of their employer, regularity of payment and so on; suggestions to the policy makers. Methodology. In this study purposive random sampling technique was followed to choose the respondents. The sample of the research includes the individuals who are within the tax net and have to pay income tax to the government. 128 respondents participated in the survey spontaneously. Mean value, standard deviation and related statistical tools were used for analyzing the data in the research. SPSS software was used for analyzing and interpreting the research result. Statistical tables were used to display the outcome. Findings. The major findings of the study suggest that 65.6% of the respondents said that their official activities have been affected much while other 25% claimed that their activities have become moderately affected due to the COVID-19 pandemic. Income of 40.6% of the respondents has already been much affected and income of 32.8% of the respondents has been moderately affected. The study warns that due to the detrimental effects of the COVID-19 pandemic on the income level, the governments tax collection may fall. Originality. The study concludes that the adverse effects of the COVID-19 pandemic will negatively affect the government revenue collection and to tackle this situation a less regressive tax system is suggested which will allow shifting tax liability to the rich taxpayers. The study emphases the implementation of the existing tax laws so that tax evasion is minimized. Practical value. The study has recommended some specific recommendations that may help the respective authority in tackling the ongoing coronavirus pandemic. The study suggested making some necessary adjustments in the public expenditure to reduce the pressure on tax collection. It might be beneficial to the government to manage the COVID-19 pandemic if the recommendations of the study are taken into consideration.

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The implementation of PSBB on the development of retail MSMEs with the COVID-19 pandemic as a moderating variable

Journal of Islamic Economics, Management, and Business (JIEMB) ◽

10.21580/jiemb.2020.2.2.6755 ◽

2020 ◽

Vol 2 (2) ◽

pp. 91-108

Author(s):

M Trihudiyatmanto

Keyword(s):

Data Analysis ◽

Small And Medium Enterprises ◽

Sampling Technique ◽

Retail Industry ◽

Purposive Sampling ◽

Data Analysis Technique ◽

Analysis Technique ◽

The Government ◽

One Year ◽

Medium Enterprises

Purpose – This study aims to analyse the effect of the implementation of PSBB on the development of Retail MSMEs (micro, small, and medium enterprises).Method – Respondents in the study were 100 respondents. The sampling technique used in this study was purposive sampling, with the criteria for Retail MSMEs actors in Garung District, Wonosobo Regency, and at least the business had been operating for one year. The data analysis technique used in this research was SEM Smart PLS.Result – The development of Retail MSMEs was significantly influenced by the implementation of PSBB and was moderated by the Covid-19 pandemic. Implication – This study can assist businesses and the government during a pandemic outbreak.Originality – This is the first study examining the influence of a pandemic outbreak on the development of MSMEs in the retail industry.

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Improving Tax Administration's Services as a Factor of Tax Compliance: The Case of Tax Audit

Lex localis - Journal of Local Self-Government ◽

10.4335/12.3.481-501(2014) ◽

2014 ◽

Vol 12 (3) ◽

pp. 481-501 ◽

Cited By ~ 5

Author(s):

Lidija Hauptman ◽

Mirjana Horvat ◽

Romana Korez-Vide

Keyword(s):

European Union ◽

Tax Evasion ◽

Union Member ◽

Tax Compliance ◽

Tax Administration ◽

Tax Rates ◽

Compliance Behavior ◽

Tax Audit ◽

Policy Measures ◽

European Union Member States

In this paper the experiences of taxpayers with the tax audits services as an important tool of tax authorities’ struggle against tax evasion are discussed. In the theoretical part of the paper the factors of tax compliance and the tax authorities’ measures in combating tax evasion are examined, the levels of tax rates and the compliance burden of European Union member states’ tax systems are compared. In the empirical part of the paper the experiences of Slovenian companies with tax audit services are analyzed. Better understanding of the drivers of taxpayer compliance behavior allows tax administration to identify and implement policy measures more effectively.

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