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 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 Restructuring the European VAT tax system: advantages and disadvantages of the adoption of a single-rate model - a study based on the Portuguese case

2019 ◽  
Vol 8 (2) ◽  
pp. 145-160 ◽  
Author(s):  
Ricardo Moraes e Soares ◽  
João Ricardo Catarino
Keyword(s):  
Statistical Tests ◽  
Tax Compliance ◽  
Point Of View ◽  
Tax Rate ◽  
Eu Member States ◽  
Goods And Services ◽  
Advantages And Disadvantages ◽  
Single Tax ◽  
Efficient Data

The common VAT system adopted by EU member states comprises a set of various rates, which differentiate the goods and services subject to this tax. However, from a technical and management point of view, it would be preferable to adopt a single tax rate as it reduces distortions and facilitates tax compliance and management. This research seeks to analyse the benefits and disadvantages of adopting a single VAT as a means of simplifying the European VAT model. It takes Portugal as a case study. The main objective of this research is to contribute to the academic debate around the theme of the single rate of VAT versus differentiated rates, through the achievement of a series of analyses and statistical tests to revenues and percentages of GDP that they correspond, in the three scenarios considered in the study: differentiated rates, single rate of 17% and single rate of 21%.In the empirical part, hypotheses were developed, the effects on tax revenue of a differential collection system were analyzed and compared to a possible single rate regime on consumption to verify which one would be more efficient. data comparison permits to verify that the estimated revenue of the single rate of VAT is higher than the values ​​obtained by the system of differentiated rates, in any of the proposed models (17% or 21%). The results of this research are valid for all countries that adopt VAT or general tax transactions.

scholarly journals THE ROLE OF INCOME TAX SYSTEM STRUCTURE IN TAX NON-COMPLIANCE BEHAVIOUR AMONG SMEs IN YEMEN

2021 ◽  
Vol 16 (Number 2) ◽  
pp. 23-49
Author(s):  
Lutfi Hassen Al-Ttaffi ◽  
Hijattulah Abdul-Jabbar ◽  
Saeed Awadh Bin-Nashwan
Keyword(s):  
Income Tax ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
System Structure ◽  
Tax System ◽  
Tax Rate ◽  
Tax Systems ◽  
High Level ◽  
Medium Enterprises ◽  
Compliance Behaviour

Tax is the main source of government revenue. However, a number of countries worldwide are increasingly besieged by challenges regarding compliance levels with the rules of tax systems. Thus, this paper aims to enhance an understanding of tax non-compliance behaviour by investigating the effect of the income tax system structure on Yemeni taxpayers’ behaviour. The study focuses on income tax compliance behaviour of owner-managers of small and medium enterprises (SMEs), as the Yemeni economy relies heavily on this sector. The SME sector represents 99.6 percent of business in Yemen. Based on a quantitative approach using a self-administered survey instrument, a total of 330 valid questionnaires were collected and the feedback provided analyzed. The results demonstrate that SME taxpayers exhibited a high level of tax non-compliance. Furthermore, the multiple regression analysis shows that the tax rate had a positive and significant influence on tax non-compliance behaviour, but the tax penalties rate did not. These results can be especially relevant to policymakers and practitioners of tax systems structures, particularly in a developing country such as Yemen.

Does religious perspective influence tax non-compliance? Evidence from Yemen

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lutfi Hassen Ali Al-Ttaffi ◽  
Hijattulah Abdul-Jabbar ◽  
Saeed Awadh Bin-Nashwan
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Content Type ◽  
Tax Rate ◽  
Taxation Policy ◽  
Policy And Strategy ◽  
The Government ◽  
The Right ◽  
Medium Enterprises ◽  
Compliance Behaviour

Purpose This paper aims to enhance the understanding of tax non-compliance behaviour of owner-managers of small and medium enterprises (SMEs) in Yemen. Drawing on the behavioural perspective and not on the Sharia per se, this study investigated the perspectives of Muslims towards government’s right to impose tax, summarised in three categories: forbidden, permissible and permissible under certain conditions. Design/methodology/approach This study was conducted using a self-administered survey to collect the required data from a sample of 500 SMEs in Yemen. Non-compliance is measured in terms of a single hypothetical tax scenario covering four types of tax situations. Yet, Muslims’ perspective towards the government’s right to impose tax was measured using the three perspectives stated above. Findings As the major finding, Muslims’ perspective towards taxation has a significant influence on their likely tax compliance behaviour. Specifically, the taxpayers who believed that tax is totally permissible (i.e. the government has the right to impose tax) were more compliant than those who believed that tax is totally forbidden. Furthermore, taxpayers’ non-compliance decisions are statistically related to tax rate and penalties. Practical implications The findings could serve as a useful input for taxation policy and strategy in Yemen. It is recommended that government should stress the importance of paying tax as a citizen’s obligation and also emphasise the religious legality of taxation, as it is used for public purposes. Originality/value This study differs from the existing literature in that its empirical investigation scrutinises the effect of citizens’ perspectives towards taxation on their non-compliance behaviour within the Islamic religion itself, particularly, in a typical Muslim community such as Yemen. The study is pioneer in adopting the views of different scholars on the government’s right to collect taxes based on three religious views (forbidden, permissible and permissible under certain conditions), which were used for measurement.

scholarly journals A Study on Critical Factors of Tax Compliance Behaviour among Small and Medium Enterprises in Libya

2021 ◽  
Keyword(s):  
Questionnaire Survey ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Critical Factors ◽  
Tax Rate ◽  
Voluntary Compliance ◽  
Effective Administration ◽  
The Government ◽  
Medium Enterprises ◽  
Compliance Behaviour

Tax compliance can be described as the level to which taxpayers obey or fail to obey the rules of taxation of their country. This is an admitted fact that the aim of an effective administration of tax is to enhance the voluntary compliance of tax with the use of all possible approaches that may include penalties as well. The primary purpose of this study is to assess the tax compliance behaviour among small and medium enterprises in Libya. This study provides a cornerstone for those who are looking for the reasons for tax compliance to be low. Therefore, this study examines the determinants of tax compliance and tax compliance behaviour. To achieve the goals of this study, a questionnaire survey was administered. Multiple regressions were used to test the formulated hypotheses. The results of this study show how the behaviour of tax compliance can be influenced by poor awareness, unfair taxes, low morale, strict authorities, tax rate and tax penalties. In relation to the practical and theoretical contributions, so far, to the best of the researcher’s knowledge, no scientific research has been done on this. This research would assist politicians, tax officials and the government of Libya in researching this phenomenon. Keywords: Tax compliance, Tax compliance behaviour, Determinants of tax, Tax knowledge, Tax penalty

Suggestions and Constraints Perceived by Shopkeepers towards Goods and Services Tax

2020 ◽  
Vol 36 (2) ◽  
pp. 51-54
Author(s):  
Shatakshi Semwal ◽  
Ella Rani ◽  
Vandana Verma
Keyword(s):  
Central Government ◽  
Service Providers ◽  
Tax Compliance ◽  
Total Sample ◽  
Primary Objective ◽  
Small Scale ◽  
Tax Rate ◽  
Goods And Services ◽  
The Government ◽  
Taxation System

The Goods and Services Tax (GST), implemented on July 1, 2017 is regarded as a major taxation reform till date implementedin India since independence. The primary objective behind development of GST was to subsume number of indirect taxes under one umbrella which simplifies taxation system for service and commodity businesses. GST was expected to convey various advantages to economy as an indirect tax and simplifies the workload of shopkeepers but it resulted in lack of clarity and time consuming process. With this assumption, study was planned to find out the constraints faced by shopkeepers and suggestions given by them regarding the implementation of Goods and Services Tax (GST). The study was carried out purposively in Hisar city of Haryana State, where, thirty shopkeepers from five respective section were selected i.e. Foods, Clothing and Textiles, Electrical appliances, Medical and Cosmetics and Communication and Transportation; thus making total sample of 150 respondents. Results from data inferred that majority of the respondent’s complained that filing GST has been more complicated now, there is increased tax compliance, high competition faced by shopkeepers and changing tax rate slabs by the central government is confusing them and making it difficult to understand the process. Furthermore, majority of the shopkeepers also suggested that there should be reduction of legal formalities, tax should be collected by the government at the manufacturing level itself and they don’t have to file for returns at later stages. They also suggested that registration should be there for all the traders and service providers with exemptions for small scale suppliers from collecting and remitting GST and casual trade category should be abolished.

A conceptual framework of tax knowledge

2019 ◽  
Vol 27 (6) ◽  
pp. 823-839 ◽  
Author(s):  
Marina Bornman ◽  
Pusheletso Ramutumbu
Keyword(s):  
Conceptual Framework ◽  
Relevant Literature ◽  
Tax Compliance ◽  
Future Research ◽  
Small Business Owners ◽  
Content Type ◽  
Tax Education ◽  
Education Outreach ◽  
Structured Approach ◽  
Compliance Behaviour

Purpose This paper aims to develop a conceptual framework of tax knowledge that can be used to analyse and discuss tax knowledge as a factor influencing tax compliance. Design/methodology/approach Relevant literature was sourced using keywords pertaining to tax knowledge to identify the constructs of the framework. Thereafter, secondary interview data on small business owners’ tax challenges were thematically analysed to test the proposed framework. Findings Three elements of tax knowledge were identified, namely, general, procedural and legal tax knowledge. General tax knowledge relates to a need to have a fiscal awareness; procedural tax knowledge refers to understanding tax compliance procedures; and legal tax knowledge pertains to a need to understand regulations. Practical implications The proposed framework may assist future research in providing a structured approach for assessing tax knowledge as a factor influencing tax compliance. The framework may also assist tax authorities in designing targeted tax education outreach programmes for taxpayers and improve their understanding of taxpayer behaviour to influence the compliance behaviour of its taxpayer population. Originality/value An acceptable and specific measurement of tax knowledge as a factor of tax-compliance behaviour has been proposed and tested as a tool for analysing and discussing taxpayers’ knowledge variables.

National innovative system: relevance of formation, contours of conceptual model and integration mechanisms of realization

2019 ◽  
pp. 3-31
Author(s):  
Yuri B. Vinslav
Keyword(s):  
Conceptual Framework ◽  
Conceptual Model ◽  
Technological Innovations ◽  
Scientific Education ◽  
Practice Recommendations ◽  
National Importance ◽  
Innovative System ◽  
Integration Mechanisms ◽  
Key Indicators ◽  
Integrated Structures

In work dynamics of key indicators of innovative activity in economy of Russia in recent years is considered. The conclusion is drawn on lack of system positive changes in the innovative sphere of the country. On the basis of the analysis of domestic and foreign practice recommendations about formation of the national innovative system (NIS) promoting more effective realization of the state industrial and scientific and technical policy are formulated. Author's vision of key segments of the domestic NIS focused on the priority directions of creation of scientific and technological innovations of the national importance is offered. Recommendations about development of specific administrative mechanisms for each of the offered segments are made. As perspective instruments of realization of NIS it is offered to use the innovative scientific and technological centers and scientific education centers. Methodical and practical questions of formation of data of the integrated structures are considered, the corresponding conceptual framework is stated.

Moderating role of patriotism on sales tax compliance among Jordanian SMEs

2020 ◽  
Vol 13 (3) ◽  
pp. 389-415 ◽  
Author(s):  
Ahmad Farhan Alshira'h ◽  
Hijattulah Abdul-Jabbar
Keyword(s):  
Tax Compliance ◽  
Arab Countries ◽  
Moderating Effect ◽  
Theory And Practice ◽  
Sales Tax ◽  
Deterrence Theory ◽  
Content Type ◽  
Tax Rate ◽  
Tax Audit ◽  
The Impact

Purpose The purpose of this paper is to investigate the impact of tax audit, tax rate and tax penalty on sales tax compliance and examine the moderating effect of patriotism on the associations between tax audit, tax rate and tax penalty with sales tax compliance among Jordanian manufacturing small- and medium-sized enterprises (SMEs). Design/methodology/approach In this study, 660 questionnaires were distributed by using systematic random sampling to manufacturing SMEs in Jordan, after which a total of 385 useable questionnaires were deemed suitable for analysis. Partial least squares structural equation modelling (PLS-SEM) was used to validate the measurement model and structural model and the predictive relevance of the study’s model. Findings The findings showed that tax audit and tax penalty were positively associated with the level of sales tax compliance, whereas tax rate was insignificantly associated with sales tax compliance. They also demonstrated the moderating significant effect of patriotism on the relationship between tax penalty, tax audit and tax rate with sales tax compliance. Research limitations/implications Tax authorities and policymakers in developing majority societies in developing countries and in other Arab countries, especially in Jordan may use the results to focus their interest on the formulation of policies founded on the outcomes of the study to strengthen eligible SMEs to comply to further boost their sales collections. Originality/value This study extends the deterrence theory in the context of sales tax compliance by proposing the moderating effect of patriotism in the deterrence theory on sales tax compliance among SMEs. Moreover, the suitability for the use of PLS-SEM as a statistical tool in investigating the extended deterrence theory with patriotism as a moderating variable as well as its implications for theory and practice was also discussed.

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