scholarly journals Measuring the Impact of Tax Inspection on Firms' Performance

2021 ◽  
Vol 5 (2) ◽  
pp. 195-204
Author(s):  
Muhamad Taufan Setiawan
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Subjective Measure ◽  
Self Assessment ◽  
Tax Audit ◽  
Causal Impact ◽  
The Difference ◽  
Compliance Problem ◽  
Taxation System ◽  
The Impact

The tax compliance problem is an imminent issue in a self-assessment taxation system in Indonesia. Tax audit is an important tool used by the tax authority to address the problem. Several studies showed that tax inspection might change the behavior of the taxpayers. Therefore, it is interesting to see how tax inspection will affect taxpayers' behavior related to their subjective measure of firms' performance. This research uses the difference-in-difference approach combine with the entropy balancing method to estimate the causal impact of tax inspection on firms’ performance. The findings showed that the inspected firms showed an increase in their perception of capital utilization which can be explained using tax evasion model or managerial benefits concept.

What's in a Name?

2022 ◽  
pp. 228-242
Author(s):  
Larissa Batrancea
Keyword(s):  
Tax Evasion ◽  
Ethnic Diversity ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Factors Influencing ◽  
The Difference ◽  
The Impact ◽  
Complex Matter

The topic of tax behavior always stirs attention among scholars, professionals, national and international authorities, organizations, and citizens alike since it is a complex matter. There are four types of tax behavior acknowledged in the literature, namely voluntary tax compliance, enforced tax compliance, tax avoidance, tax evasion. The complexity of tax behavior stems from the fact that there are a manifold of factors influencing it, from economic to psychological ones. The chapter surveys relevant sources on tax behavior in the quest for eliciting the impact of ethnic diversity on tax compliance. At the same time, the difference between countries are also addressed.

scholarly journals The Quality Effect of Auditing on Tax Compliance: Evidence from Tunisian Context

2022 ◽  
Vol 12 (1) ◽  
pp. 24-27
Author(s):  
Lynda Soltani
Keyword(s):  
Tax Evasion ◽  
Audit Quality ◽  
Tax Compliance ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Accounting Environment ◽  
The Subject ◽  
The Difference ◽  
The Impact ◽  
Statutory Tax Rate

Taxation is the subject of complex and evolving regulations. it has become one of the major concerns of any business to better manage its finance, the responsible for corporate governance give an importance to the fiscal in the strategy and management of the company. In recent years, the importance of taxation in the financial and accounting environment is motivated to study the impact of control and transparency of infomation affected by audit quality. We study a sample of 19 companies between 2013 and 2017, the result shows that audit quality improves tax compliance in the Tunisian context while measuring tax evasion by the difference between the statutory tax rate and the effective tax rate. This study finds that tax evasion in Tunisian firms may have decreased with better audit quality.

scholarly journals The Impact of Tax Audit and Corruption Perception on Tax Evasion

2021 ◽  
Vol 22 (3) ◽  
pp. 1158-1173
Author(s):  
Ferry Irawan ◽  
Adam Siaga Utama
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Fixed Effect Model ◽  
Tax Enforcement ◽  
Effect Model ◽  
Panel Data Regression ◽  
Data Regression ◽  
Tax Audit ◽  
Corruption Perception ◽  
The Impact

This study is aimed to determine the impact of tax audit intensity and perception of corruption on tax evasion activities. Some research that explains the impact of tax audit on tax evasion tends to give a varied result one and another. It is reasonable to assume that there is another factor that simultaneously influences tax evasion. Tax audit and perception of corruption were chosen because of their relevance and intertwine relation in tax authorities function and program, namely tax enforcement and the eradication of corruption. This research is also in line with the challenges faced by many countries in increasing tax compliance. We conduct a panel data regression method with a fixed effect model. We found that tax audit proved insignificant to tax evasion, and perception of corruption positively significant to tax evasion. We conclude that corruption significantly increases tax evasion and undermine the benefit of tax audit

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.

scholarly journals Bearing of Tax Audit on Tax Compliance and Revenue Generation in Ekiti State

2020 ◽  
Vol 12 (1) ◽  
pp. 115
Author(s):  
Raphael Adekola DADA ◽  
Isaac Babatope TAIWO
Keyword(s):  
Tax Compliance ◽  
Internal Revenue Service ◽  
Revenue Generation ◽  
Analysis Technique ◽  
Tax Audit ◽  
Compliance Audit ◽  
Cent Level ◽  
The Government ◽  
The Impact ◽  
Structured Questionnaire

The paper examined the impact of tax audit on revenue generation in Ekiti State. The data used for this study was gathered using structured questionnaire administered to 312 staff of the Ekiti State Internal Revenue Service. A regression analysis technique was adopted, and the result revealed that certain per cent of the revenue generated in Ekiti State could be explained by the tax audit; It was also discovered that auditing access, auditing officials, an effective tax audit, non-compliance, audit fieldwork, tax audit control, and corruption affect the revenue generation by 1.188, 0.319, 0.596, 0.148, 0.157, 0.125 and 0.002 respectively; the probability value  0.00, 0.01, 0.00, 0.022 and 0.00 ˂ 0.05 showed that auditing access, auditing officials, effective tax audit and incentive were statistically significant at 5 per cent level; the probability of F-statistic value 0.000 ˂ 0.05 revealed that the model was appropriate for determining the impact of tax audit on revenue generation in Ekiti State. Thus, the study concluded that tax audit should be embraced as it maximizes the collection of revenue which enables the government to address developmental projects that will benefit its citizenry and also helps in strengthening the businesses of the taxpayer.

scholarly journals Determinants of Tax Compliance Behaviour under the Self-Assessment Scheme in Nigeria

2019 ◽  
Vol 8 (2) ◽  
pp. 13
Author(s):  
John Obiora Anyaduba ◽  
Timothy Oboh
Keyword(s):  
Tax Compliance ◽  
Sampling Technique ◽  
The Self ◽  
Self Assessment ◽  
North Central ◽  
South West ◽  
Tax Audit ◽  
Edo State ◽  
Compliance Behaviour ◽  
Behaviour Data

This study examined the determinants of tax compliance behaviour under the self-assessment scheme in Nigeria. A non-random stratified sampling technique was used to evaluate taxpayer behaviour. Data was also gathered using questionnaire from three of the six geopolitical zones in Nigeria, namely South-South, South-West and North central zones respectively. The specific locations were Edo state, Lagos state, and Federal Capital Territory, Abuja resulting in 550 respondents which were analysed. The results showed that tax audit and awareness of offences and penalties had a positive and significant impact on tax compliance behaviour under the self-assessment scheme in Nigeria. Simplicity of tax administration and returns, tax knowledge and taxpayers’ integrity had a positive but not significant impact on tax compliance behaviour under the self-assessment scheme in Nigeria. The study recommends that the tax authorities should enhance the capacity of tax audit and ensure that there are sufficient tax officials to facilitate tax audit exercise, create greater awareness of the various offences and penalties through the mass media and undertake an upward review of extant penalties.

scholarly journals Impact of GST on MSMEs

2019 ◽  
Vol 8 (2S6) ◽  
pp. 688-694
Keyword(s):  
Random Sampling ◽  
Tamil Nadu ◽  
Sampling Technique ◽  
Statistical Tools ◽  
High Compliance ◽  
The Difference ◽  
Taxation System ◽  
The Impact ◽  
One Way Anova ◽  
Cluster Random Sampling

MSME play a vital in the economical progress of the Countries, so the implementation of GST has had an immense outcome on the continued existence in the market. Some enterprises found it helpful however majority visage problem in adopting it. For existing enterprises, GST simplified the tax structure, unified the market thus improved among all operational efficiencies of MSME, to this point the unorganized MSMEs were growing quick than the organized ones as a result of the minimization, with GST in effect, it has made the taxation system transparent thus making the entities liable for tax payment. This paper brought out issues and challenges experienced by MSME Entrepreneur. In order to find out the impact on various aspect such as applying of GST, created the registration for taxation and High Compliance burden by using Cluster Random Sampling Technique in which 158 MSME Entrepreneur were selected in Sivaganga District in Tamil Nadu for the study. The statistical tools used for the analysis is one-way ANOVA. ANOVA is used to identify the significance of the difference in the levels of impact of GST among MSMEs. It was concluded that the impact of GST on the Indian MSME sector can go both positive and negative ways

scholarly journals INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) AND SERVICE DELIVERY IN NIGERIAN PUBLIC SECTOR: A STUDY OF FEDERAL INLAND REVENUE SERVICE (2000-2019)

2020 ◽  
pp. 1-15
Author(s):  
Edem Edemekong Edemidiong ◽  
Ebong, Itoro Bassey ◽  
Osezua Ozinegbe
Keyword(s):  
Service Delivery ◽  
Information And Communication Technology ◽  
Communication Technology ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Business World ◽  
Revenue Generation ◽  
Information And Communication ◽  
Inland Revenue ◽  
The Impact

This paper examined the impact of Information and Communication Technology (ICT) on the level of services delivered by the Federal Inland Revenue Service (FIRS). The paper was premised on the perceived importance and role of the online platform in the prompt payment of corporate tax as its efficiency in increasing compliance while decreasing the level of tax evasion by corporate bodies. A related challenge that is increasingly being faced by users of electronic facilities for government transaction is a lack of universal security mechanism that forms a first line of defense for such users. The objective of the paper was to examine the impact of ICT on the level of revenue generation efforts of the FIRS and the level of tax evasion in Nigeria. Technology acceptance model was used as theoretical framework of analysis. The paper adopted survey and descriptive research design to elicit responses from the study sample. Both primary and secondary sources of data were used in eliciting information needed for the study. Pearson pear product and chi-square method were used as statistical method of analysis. The major findings of the study revealed among others that application of ICT will only amount to negligible level of revenue generation. It was also revealed that the relationship between application of ICT and the level of tax compliance and acceptability is not significant. Based on the findings, the paper recommended among others, that the government and their agencies should embark on an all-important campaign for attitude and behavioral change with regards to encouraging people in the business world to perceive tax as an obligation to the state and not just a yearly ritual that must be embarked upon by them. KEYWORDS: Federal Inland Revenue, Information Communication Technology, Taxation and Service Delivery

scholarly journals ANTECEDENT TERHADAP KEPATUHAN WAJIB PAJAK BADAN DENGAN TAX AMNESTY SEBAGAI PEMODERASI

2017 ◽  
Vol 3 (1) ◽  
pp. 49-61
Author(s):  
Ayu Komala Dewi ◽  
Syahril Djadang ◽  
Darmansyah Darmansyah
Keyword(s):  
Law Enforcement ◽  
Sampling Method ◽  
Tax Compliance ◽  
Statistical Test ◽  
Corporate Tax ◽  
Tax Amnesty ◽  
Tax Audit ◽  
Study Population ◽  
Tax Payers ◽  
The Impact

ABSTRACTThis study aims to identify and analyze the impact of tax audit and enforcement of compliance on corporate tax payers, with the tax amnesty as a moderating factor. The study population was registered corporate tax payers in KPP Pratama Depok. This research is using random sampling method with a total of 100 respondents. Data analysis was performed using Moderate Regression Analyst (MRA), which contains elements of interaction (multiplication of two or more independent multiplication) by using SPSS 22 for windows. The study used a questionnaire statement that is processed with statistical test. The results showed that the tax audit, law enforcement if it is moderated by tax amnesty has positively significant impact on tax compliance entities. Keywords: Tax Audit, Enforcement, Tax Amnesty, Tax Payer Compliance

scholarly journals TAX COMPLIANCE DAN TAX EVASION: TANTANGAN DEMOKRATISASI WAJIB PAJAK

2017 ◽  
Vol 9 (2) ◽  
pp. 59
Author(s):  
Supriyati Supriyati
Keyword(s):  
Service Quality ◽  
Tax Evasion ◽  
Legal Aspect ◽  
Tax Compliance ◽  
Partial Least Square ◽  
Least Square ◽  
System Service ◽  
Compliance Behavior ◽  
Taxation System

Abstract. This study focuses on tax compliance behavior that is emphasized in the viewpoint of government and individualistic taxpayers. Taxpayer compliance has always been an interesting issue and is still debatable in previous research. The democratic involvement of taxpayers still creates a reluctance to pay taxes so that non-compliance efforts still occur. This research tries to test the aspect of legality, modernization of tax system, service quality of tax officer and intellectual taxpayer toward taxpayer compliance and tax evasion. This research is a primary research conducted through the distribution of questionnaires in the convinience of taxpayers registered in the East Java tax office. Respondents of this study as many as 252 individual taxpayers. Testing is done by using Partial Least Square (PLS). The results showed that the variables of legality and service quality of tax authorities have an effect on taxpayer compliance, and taxpayer compliance also affects tax evasion. whereas, the variable modernization of taxation system and intellectual taxpayer have no significant effect on taxpayer complianceKeywords: Legal Aspect; Intellectual; Tax Compliance; Tax evasion Abstrak. Penelitian ini berfokus pada perilaku patuh pajak yang ditekankan pada sudut pandang pemerintahan dan individualistik wajib pajak. Kepatuhan wajib pajak selalu menjadi isu yang menarik dan masih menimbulkan perdebatan pada penelitian sebelumnya. Keterlibatan wajib pajak secara demokratis masih menimbulkan keengganan untuk membayar pajak sehingga upaya ketidakpatuhan masih saja terjadi. Penelitian ini mencoba menguji aspek legalitas, modernisasi sistem perpajakan, kualitas layanan aparat pajak dan intelektual wajib pajak terhadap kepatuhan wajib pajak dan penggelapan pajak. Penelitian ini merupakan penelitian primer yang dilakukan melalui penyebaran kuesioner secara convinience pada wajib pajak yang terdaftar di kantor pajak wilayah Jawa Timur. Responden penelitian ini sebanyak 252 wajib pajak orang pribadi. Pengujian dilakukan dengan menggunakan Partial Least Square (PLS). Hasil penelitian menunjukkan bahwa variabel legalitas dan kualitas layanan aparat pajak berpengaruh terhadap kepatuhan wajib pajak, dan kepatuhan wajib pajak juga mempengaruhi penggelapan pajak. sedangkan, variabel modernisasi sistem perpajakan dan intelektual wajib pajak berpengaruh tidak signifikan terhadap kepatuhan wajib pajak.Kata Kunci: Aspek Legal; Intelektual; Kepatuhan Pajak; Penggelapan Pajak

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