scholarly journals Determinants of Tax Compliance Behaviour among Rental Income Earners in Pokhara

2021 ◽  
Vol 14 (1) ◽  
pp. 69-81
Author(s):  
Ghanashyam Tiwari
Keyword(s):  
Local Government ◽  
Peer Influence ◽  
Fiscal Federalism ◽  
Negative Relationship ◽  
Tax Compliance ◽  
Fiscal Sustainability ◽  
Compliance Behavior ◽  
Government Incentives ◽  
The Cost ◽  
Compliance Behaviour

Rental tax is an important source of revenue for local government units. After Nepal adopted fiscal federalism, concerns have been shown by policymakers as well as academicians on the fiscal sustainability of the local government units. In this context, this study attempts to explore tax compliance behaviour among rental income owners in Pokhara. The study is based on a survey of 196 households located in wards 9, 11 and 17 of Pokhara Metropolitan City. The wards represent commercial, semi-urban, and densely populated areas of the city respectively. The required data were gathered employing a self-administered questionnaire comprising Likert scales to measure tax awareness, attitude towards tax, cost of non-compliance, peer influence for compliance, government incentives, and tax compliance behavior of the rental income earner. The data collected were analyzed employing ANOVA, correlation and multiple regression. The research revealed a positive relationship between tax awareness, attitude towards tax, peer influence, and government incentives with tax compliances. The study findings depict that the taxpayers’ awareness and perception towards tax are important variables that affect the compliance behavior of rental taxpayers. Moreover, the results reveal that the rental income earner in Pokhara does not comply with the tax rules due to the lower cost of non-compliance as negative relationship established was found between tax compliance and the cost of non-compliance. Metropolitan tax authority needs to focus on awareness and government incentives rather than the cost of non-compliance for better adherence to tax rules among rental taxpayers.

The Interrelationship between Estimated Tax Payments and Taxpayer Compliance

2002 ◽  
Vol 24 (s-1) ◽  
pp. 27-45 ◽  
Author(s):  
Glenn D. Feltham ◽  
Suzanne M. Paquette
Keyword(s):  
Cost Of Capital ◽  
Tax Compliance ◽  
Theoretic Model ◽  
High Type ◽  
Compliance Behavior ◽  
Game Theoretic ◽  
Game Theoretic Model ◽  
Audit Strategy ◽  
Tax Payments ◽  
The Cost

This paper examines taxpayers' compliance behavior and the tax agency's audit decision in a broader, more realistic, setting. Whereas prior research has taken the taxpayer's prepayment position as exogenous, this study extends the literature by incorporating the estimated tax payment decision into a tax compliance game. A two-period game-theoretic model is used to examine the effect that the estimated tax payment rules have on taxpayers' incentives to evade and on the tax agency's audit strategy. Our primary results are as follows. First, in equilibrium taxpayers' estimated tax payment decision will depend upon the uncertainty about their true tax liability, and the cost from overpayment (the taxpayer's cost of capital) or underpayment (penalty interest) of installments of estimated tax. Second, under reasonable assumptions, high-type taxpayers who make higher installments of estimated tax are less likely to lie about their level of income than those who make lower installments—that is, taxpayers who pay low are more likely to evade. Third, the tax agency audits taxpayers who have made low reports and low estimated tax payments with a higher probability than those who have made high estimated tax payments. The gain to the tax agency from auditing taxpayers who make lower payments and evade arises not only from the penalties charged for evasion, but also from the interest charged on deficient installments of estimated tax.

scholarly journals Tax Payers’ Attitude and Compliance Behavior among Small Medium Enterprises (SMEs) in Botswana

2012 ◽  
Vol 1 (1) ◽  
pp. 113 ◽  
Author(s):  
Nugi Nkwe
Keyword(s):  
Tax Compliance ◽  
Descriptive Statistics ◽  
Statistical Tools ◽  
Compliance Behavior ◽  
Tax Systems ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Tax Payers ◽  
Compliance Behaviour

In the framework of this study, an attempt to identify the level of taxpayers’ attitudes and tax compliance behaviour towards tax systems, to identify factors which influence taxpayers’ attitudes, to establish relationship between attitudes and tax compliance behaviour and to recommend ways that may contribute to development of enhanced taxpayers’ attitudes and compliance behaviour among Small Medium Enterprises in Botswana. This research was a survey whose data is collected from two hundred taxpayers in Small Medium Enterprises. After the data was collected, it was analyzed using descriptive statistics then summarized and presented using statistical tools. From the findings, the conclusionis that taxpayer’ attitudes do affect their compliance behaviour and recommendations weremade to try andhelp these SMEs.

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.

Fiscal Sustainability, Demographics, and the Social Determinants of Health Driving Intergenerational Equity

2018 ◽  
pp. 125-147 ◽  
Author(s):  
Richard F. Callahan ◽  
Mark A. Pisano
Keyword(s):  
Local Government ◽  
Common Pool Resources ◽  
Intergenerational Equity ◽  
Fiscal Sustainability ◽  
Lower Growth ◽  
Social Inequities ◽  
The Social ◽  
Lower Growth Rate ◽  
The Individual ◽  
The Cost

The research developed in this chapter identifies intergenerational equity as a function of three dynamics: local government fiscal sustainability, demographic drivers, and place-based health equity. Intergeneration equity is researched from three related sets of pressures: One, the cost increases threatening the fiscal sustainability. Two, demographic changes result in a lower growth rate of working population. Three, persistent social inequities linked directly to neighborhoods correlate with wide disparities in life expectancy. The research develops a deeper understanding of each of these three dynamics, including the individual impact as well as the collective impact through their interconnectedness. This combined analytic framework better identifies the institutional mechanisms that can address these issues. The chapter concludes with mapping ways for local government to move forward by applying the design principals developed from research in sustainability of common pool resources.

Is the conflict container full? Problems of fiscal sustainability at the local government level in Hungary

2010 ◽  
Vol 60 (1) ◽  
pp. 49-77 ◽  
Author(s):  
A. Vigvári
Keyword(s):  
Local Government ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Central Government ◽  
Fiscal Sustainability ◽  
Fiscal Discipline ◽  
System A ◽  
Government Sector ◽  
Short Run ◽  
Local Government Level

The paper discusses the reasons and possible resolutions of the contradictions in the Hungarian local government system, and proposes methods to resolve them. The nature of the Hungarian system cannot be described by classical normative theories of fiscal federalism. The operation of Hungarian local governments is determined rather by the decentralisation of conflicts stemming from the reduction of state responsibilities, and the resulting municipal behaviour. The second generation theory of fiscal federalism pays particular attention to the institutional guarantees of fiscal discipline shown by the lower levels of government sector. Actors in the Hungarian system, a system that functions as a ‘conflict container’, try to offset the financial pressures, weighing heavily on them by borrowing and by contingent liabilities. While central government has transferred new duties to local governments from year to year, it has reduced the amount of fiscal subsidies. Until a long-term comprehensive reform is implemented, consequent risks must be treated in the short run, as well.

scholarly journals SALES TAX COMPLIANCE AND ITS DETERMINANTS IN MALAYSIA

2020 ◽  
Vol 5 (2) ◽  
pp. 01-20
Author(s):  
Leap Sing Tee ◽  
Zainol Bidin
Keyword(s):  
Service Quality ◽  
Peer Influence ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Sales Tax ◽  
Compliance Cost ◽  
Tax Complexity ◽  
The Government ◽  
Compliance Behaviour ◽  
Tax Fairness

Tax compliance behaviour has been addressed as a continuous serious concern globally. However, empirical research on sales tax compliance in Malaysia is still scarce. The present study can be considered a first attempt that was conducted in the context of sales tax version 2.0 for sales tax compliance in Malaysia. The main objective of this study was to investigate the determinants of sales tax compliance behaviour among Small and Medium Enterprises (SMEs) in Malaysia. The studies used the Fischer model as a basic model with the inclusion of socio-psychological factors (tax complexity, peer influence, tax fairness, tax knowledge, service quality, and compliance cost) and economic factors (tax complexity) with sales tax compliance. As a new contribution to tax compliance knowledge, the relationship between tax compliance behaviour and its determinants was also examined. Using the samples collected from employees who are working in SMEs under the manufacturing sector, findings show that tax complexity, tax fairness, peer influence, and tax knowledge have significant influences on compliance behavior. Meanwhile tax law and enforcement, service quality and compliance cost variable on tax compliance were non-significant. This study concluded with the theoretical and practical implications for the tax authority and the government of Malaysia.

Zakah compliance in Muslim countries: an economic and socio-psychological perspective

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saeed Awadh Bin-Nashwan ◽  
Hijattulah Abdul-Jabbar ◽  
Saliza Abdul Aziz ◽  
Adel Sarea
Keyword(s):  
Peer Influence ◽  
Social Protection ◽  
Tax Compliance ◽  
System Structure ◽  
Psychological Perspective ◽  
Content Type ◽  
Perception System ◽  
Compliance Decisions ◽  
Compliance Model ◽  
Compliance Behaviour

Purpose Although Zakah is the cornerstone of the social protection system in Muslim societies, providing relief to those in need and collecting funds from those who have access to money and property, many administrative and legal improvements need to be made to ensure that Zakah funds are managed effectively and efficiently in Muslim states. It is therefore important to recognize why some Muslims are not paying their Zakah through Zakah authorities. The purpose of this paper is to propose a viable and comprehensive research model, derived from an economic and socio-psychological perspective, to provide a richer understanding of Zakah payers’ compliance behaviour. Design/methodology/approach Drawing on extant literature, this study offers a conceptual framework for a better understanding of compliance behaviour by proposing an economic and socio-psychological model based on Fischer’s tax compliance model, which could be applied cautiously in an Islamic setting like Zakah. Findings The four main categories of the Fischer model are derived from socio-psychological and economic perspectives, namely, attitude and perception (system fairness, ethics and peer influence); Zakah system structure (Zakah law complexity and law enforcement); non-compliance opportunity (education level, wealth source and occupation); and demographic factors (age and gender). Each has much to offer in understanding Zakah payers’ compliance decisions. To suit the nature of Zakah, the influence of Islamic religiosity and the moderating effect of trust in the Zakah institution are incorporated into the model. Practical implications Those Muslim communities that strive to have functional Zakah systems to search for solutions to the perennial problem of low Zakah funding and its damning consequences, are offered a compliance model for systematically assessing Muslims’ compliance behaviour with Zakah provisions. This framework is anticipated to offer invaluable input to policymakers in streaming and strategizing the minimization of losses of Zakah revenue to Zakah authorities. Originality/value Although behavioural models such as the theory of reasoned action and the theory of planned behaviour have been extensively used in Zakah compliance studies, to the best of the authors’ knowledge, this study is perhaps the first to apply a socio-psychological and economic framework, emerging from tax literature, in the Zakah environment to develop fully understanding of Zakah payers’ compliance decisions.

scholarly journals FRAMING DAN GENDER DALAM KEPATUHAN PAJAK : STUDI EKSPERIMEN

2020 ◽  
Vol 13 (1) ◽  
Author(s):  
Titisari Dian Prastiwi ◽  
Theresia Woro Damayanti
Keyword(s):  
Tax Compliance ◽  
Bachelor's Degree ◽  
Individual Behavior ◽  
Personal Attributes ◽  
Primary Data ◽  
Factorial Designs ◽  
Feminine Gender ◽  
Compliance Behavior ◽  
And Gender ◽  
Compliance Behaviour

Framing causes differences individual behavior in making various decisions. One of them is the decision regarding tax compliance. This research study’s aimed to examine where there are differences in tax compliance behaviour between those who receive positive and negative framing and differences in individual tax compliance behavior based on personal attributes in the form of masculine and feminine gender. Prospect theory used as a basis for explaining changes in individual behavior when receiving framing effects. This study was conducted by primary data in the scope of Bachelor’s Degree of Accountancy at FEB UKSW who took Taxation Management. This experiment design was consisted of 2 x 2 between subject factorial designs. The result of this study prove that there is no influence between framing and gender on tax compliance.The results that obtained from the examination of interaction also prove that there is no influence that is difference between positive and negative framing and or masculine and feminine gender on tax compliance. 

scholarly journals Voluntary Tax-compliance Behavior in SMEs; Evidence from Pakistan and Turkey

2020 ◽  
Vol 6 (4) ◽  
pp. 905-918
Author(s):  
Muhammad Shaukat Malik ◽  
Sabah Younus
Keyword(s):  
Research Work ◽  
Tax Compliance ◽  
Developed Countries ◽  
Medium Size ◽  
Key Factors ◽  
Risk Area ◽  
Mediating Role ◽  
Compliance Behavior ◽  
Trust Relation ◽  
Compliance Behaviour

This research article aims at exploring the Voluntary Tax-compliance behaviour of the small and medium-size business enterprises for two countries, Pakistan and Turkey. Voluntary tax-compliance from SME’s is considered as major risk area by the tax-collection authorities of both developing and developed countries, authorities from both desire to bring individuals belonging to SME’s to pay taxes on a voluntary basis, in order to generate higher revenues for their governments. Thus, data was collected from the owners of SME’s of both countries through a questionnaire, data thus collected was analysed using SPSS and PLS-Smart. The results suggested that voluntary tax-compliance can be achieved by building a mutual trust relation and by exercising legitimate use of power by the tax authorities, results also signify that subjective norms, perceived behavioural control, attitude towards taxes and moral obligation are also key factors in determining the voluntary tax-compliance behaviour as suggested by Kirchler,  Hoelzl and Wahl,  (2008). Also, this article tests the mediating role of the intention of building positive voluntary tax-compliance behaviour as suggested by Ajzen (1991). This study is an important contribution in literature as it incorporates data from two countries, Pakistan (a developing nation) and Turkey (that is making its mark in the list of developed countries). This research work can be further extended by incorporating comparative analysis among the business owners belonging to developed, semi-developed and developing countries.

scholarly journals Limits of fiscal federalism: How narratives of local government inefficiency facilitate scalar dumping in New York State

2018 ◽  
Vol 51 (3) ◽  
pp. 636-653 ◽  
Author(s):  
Yunji Kim
Keyword(s):  
New York ◽  
Local Government ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Global Financial Crisis ◽  
Local Level ◽  
New York State ◽  
Fiscal Sustainability ◽  
Governance System ◽  
York State

US local governments are responsible for a variety of services, based on the assumptions of fiscal federalism that local governments can deliver residents the services they want at the lowest cost. However, an austerity narrative that calls for shrinking public budgets emerged after the 2008 global financial crisis and higher levels of government are dumping fiscal stress down to the local level in a process of “scalar dumping.” How do local governments respond to these austerity pressures and why do we see weak pushback from local governments? Focus groups with local government officials across New York State show local responses are constrained by the combination of a state-level limit on local property taxes and a narrative of local government inefficiency. Although local governments have the legal authority to raise revenues, they are reluctant to use this authority due to political pressure from the state and voters. These pressures encourage local governments to maintain services without adequate revenues. Pushback is weak as local governments lack institutional power in a state-based federal system and the heterogeneity among local governments makes collective action difficult. Fiscal federalism promises efficiency and effectiveness in a decentralized governance system, but has limited ability to counter “scalar dumping” that erodes fiscal sustainability. More balance of power in state–local relationships and a narrative that better connects local taxes and services are necessary.

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