scholarly journals EFFECTIVENESS OF TAXPAYER EDUCATION ON TAX COMPLIANCE FOR SMALL AND MEDIUM ENTERPRISES IN KENYA: A STUDY OF SELECTED BUSINESS ENTERPRISES IN KITENGELA TOWN IN KAJIADO COUNTY

2020 ◽  
Vol 1 (3) ◽  
pp. 114-123
Author(s):  
Robin Marita Aondo
Keyword(s):  
Reasoned Action ◽  
Small And Medium Enterprises ◽  
Pearson Correlation ◽  
Tax Compliance ◽  
Target Population ◽  
Fiscal Year ◽  
Tax Rates ◽  
Inferential Statistics ◽  
Compliance Cost ◽  
Medium Enterprises

This research paper aim was to establish the effectiveness of taxpayer education on tax compliance for SMEs in Kitengela town. There are reasons why KRA never met its revenue targets and the revenue collected has never surpassed the target set aside by the commission. The non-compliance of tax by SMEs can be attributed to the tax gap that is available in every fiscal year. KRA conducts taxpayer education to all registered SMEs in an effort to improve the existing level of tax compliance. The only way KRA will meet their target revenue is when they include all SMEs in the generation of the revenue. The study was anchored on Theory of Reasoned Action and Fisher Tax Compliance Model while the study variables were PAYE form of tax, tax rates, tax compliance cost, tax penalties and fines. The target population of the study were 1400 SMEs with a sample that was random stratified chosen of 140 SMEs. The data was analyzed using descriptive statistics, inferential statistics and SSPS version 24.0. The inferential statistics was employed to establish the relations that exist between the study variables. Pearson correlation matrix was used for predicting and describing the variables in terms of directions and magnitude while regression analysis was conducted at a level of 5%. The data analysis tools will be   SSPS and the use of inferential statistics. The study established that the effectiveness of taxpayer education on tax compliance and all the predictors as shown by beta coefficients: PAYE (? = 0.542); tax rates (? = 0.482) and tax penalties and fines (? = 0.632). However, the study established there is a positive but statistically insignificant relationship (? =0.06, p= 0.671>0.05) between tax compliance cost and tax payer education. The study concluded that tax rates, PAYE, tax penalties and fines contribute greatly to tax compliance and finally tax compliance cost have the most significant influence on tax compliance. The study recommends that KRA should have an office in every county that will address tax issues at county level and the services to be offered should include tax penalties, filing of tax returns, tax computation and tax differentiation.

scholarly journals Liquidity, profitability, tax rate and bankruptcy risk in Colombian SMEs

2020 ◽  
Vol 24 (1) ◽  
Author(s):  
Nelson A. Andrade-Valbuena ◽  
Fabio Moscoso Duran ◽  
Carlos Salcedo-Perez
Keyword(s):  
Longitudinal Research ◽  
Small And Medium Enterprises ◽  
Pearson Correlation ◽  
Statistical Evidence ◽  
Tax Rates ◽  
Bankruptcy Risk ◽  
Tax Rate ◽  
Risk Of Failure ◽  
Medium Enterprises ◽  
Score Index

This article looks for statistical evidence for the correlation between liquidity, profitability, tax rates and bankruptcy risk for the period 2011 - 2016 between Small and Medium Enterprises in Bogota (Colombia). To do so, the authors conducted a quantitative, longitudinal research for which the Altman Z’’ Score index was used. Data from 2,084 enterprises belonging to 19 industries was collected. The relations between the variables were analyzed by the Pearson correlation coefficient. A significant positive correlation between the risk of failure and low levels of liquidity was evidenced in several industries. The results for the relation between the risk of bankruptcy and profitability were not conclusive, neither significant. Not enough statistical evidence that related rates of return or tax rates to risk of failure was found.

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

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.

scholarly journals Pengaruh Pengetahuan Wajib Pajak, Administrasi Pajak, Tarif Pajak dan Sanksi Perpajakan terhadap Kepatuhan Pajak Pada Pelaku Usaha UMKM di Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 288
Author(s):  
Gandy Wahyu Maulana Zulma
Keyword(s):  
Small And Medium Enterprises ◽  
Statistical Tests ◽  
Tax Compliance ◽  
Tax Administration ◽  
Tax Rates ◽  
Medium Enterprises ◽  
Positive Effect

This study aims to test the determinants of tax compliance in small and medium enterprises (MSMEs) empirically, by considering several aspects such as tax knowledge, tax administration, tax rates, and tax sanctions in influencing the compliance of MSME taxpayers in Indonesia. The population and sample in this study focus on businesses with a turnover of less than 4.8 billion, which are included in the MSME sector. A total of 154 questionnaires were collected and can be used for further analysis through a series of statistical tests. The results showed that tax knowledge, tax administration, and tax sanctions have a positive effect on tax compliance in Indonesia. These findings indicate that better knowledge of tax, tax administration, and enforcement of fair and transparent tax sanctions can improve tax compliance.

scholarly journals PEMBINAAN KEPATUHAN PERPAJAKAN USAHA MIKRO, KECIL DAN MENENGAH KOTA DEPOK MELALUI WORKSHOP PENGISIAN SURAT PEMBERITAHUAN PAJAK PENGHASILAN

2021 ◽  
Vol 3 (2) ◽  
pp. 133-136
Author(s):  
Selvi . ◽  
Indra Sumarna ◽  
Alief Ramdhan
Keyword(s):  
Income Tax ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Tax Rates ◽  
Preliminary Survey ◽  
Tax Returns ◽  
Small Medium Enterprises ◽  
Medium Enterprises

The reduction of tax rates for Micro, Small and Medium Enterprises (MSMEs) is actually to provide convenience to business actors in exercising their tax rights and obligations. However, the preliminary survey conducted by researchers shows that there are still many business actors who do not carry out tax obligations because of their ignorance of taxation. Therefore, the development of tax compliance for MSME actors begins with providing workshops on filling out Income Tax Returns to 20 MSMEs in Depok City by the collaboration with the Department of Cooperatives, Small Medium Enterprises and Market of Depok. The method is carried out by giving lectures, demonstrations, income tax calculation exercises and filling of Income Tax Return. The results of the implementation show that as many as 18 MSMEs can calculate up to filling in Income Tax Return

scholarly journals Effect of fairness and knowledge on tax compliance for Micro, Small, and Medium Enterprises (MSMEs)

2020 ◽  
Vol 9 (1) ◽  
pp. 143-150
Author(s):  
Ajeng Rachma Pertiwi ◽  
Syaiful Iqbal ◽  
Zaki Baridwan
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Small And Medium Enterprises ◽  
Linear Regression Analysis ◽  
Tax Compliance ◽  
Multiple Linear Regression Analysis ◽  
Tax Rates ◽  
Self Interest ◽  
Medium Enterprises ◽  
Tax Fairness

This study aims to empirically examine the effect of tax fairness and tax knowledge on tax compliance for Micro, Small and Medium Enterprises (MSMEs). Azmi and Perumal (2008) identified five of tax fairness dimensions: general fairness, exchanges with the government, special provisions, tax rates structure, and self-interest. Tax knowledge related to tax calculation, tax payment, and tax reporting. This study used a survey method by distributing the questionnaire. The sample used was Micro, Small and Medium Enterprises (MSMEs) in Malang city through the cluster random sampling method. The data obtained were 107 respondents who were processed with the help of SPSS 24. Two regression analyses used in this study are multiple linear regression analysis and simple linear regression analysis. The results of the study using multiple linear regression analysis showed that the three dimensions of tax fairness that affect MSMEs compliance are general fairness, tax rates structure, and self-interest. The results from the simple linear regression analysis show that tax knowledge influences MSMEs' compliance.

scholarly journals Factors affecting tax compliance of small and medium enterprises in Hung Yen province, Vietnam

Accounting ◽  
2022 ◽  
Vol 8 (2) ◽  
pp. 111-122 ◽  
Author(s):  
Hien Thu Nguyen
Keyword(s):  
Experimental Research ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Tax Rates ◽  
Corporate Tax ◽  
Statistical Software ◽  
Factors Affecting ◽  
Special Concern ◽  
The Government ◽  
Medium Enterprises

Corporate tax compliance has been an interest of policymakers in many countries. Taxes contribute the most to the government’s revenues in Vietnam in general and in Hung Yen in particular. Therefore, tax compliance of enterprises, including SMEs, attracts special concern of the Government and many localities. The objective of this study is to evaluate factors affecting tax compliance by examining 310 managers, tax accountants and accountants at SMEs in Hung Yen province. The survey data is collected by the statistical software SPSS 20. The experimental research results confirm that factors (the possibility of tax inspection, tax rates, tax penalties, and the complexity of tax policy, social norms and tax knowledge) have different influences on tax compliance in SMEs in Hung Yen province, Vietnam.

scholarly journals Analisis Dampak Tax Morale Terhadap Kepatuhan Pajak UMKM: Studi Kasus Kota Semarang

2018 ◽  
Vol 1 (1) ◽  
pp. 14
Author(s):  
Muslimah Mahmudah ◽  
Deden Dinar Iskandar
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Binary Logistic Regression ◽  
Primary Data ◽  
Binary Logistic Regression Analysis ◽  
Ethical Business ◽  
Tax Morale ◽  
Business Size ◽  
Medium Enterprises ◽  
The Impact

This study aims to analyze the impact of tax morale on Micro, Small, and Medium Enterprises (MSMEs) tax complianceSemarang City as the case study. This study uses primary data generated from 117 samples of MSMEs in Semarang. Data analysis is performed  using binary logistic regression analysis. The results showed that environmental, institutional, ethical, business, and business size variables significantly influence MSMEs tax compliance. On the other hand, variables whose effect on tax compliance is not statistically significant include happiness, religiosity, gender, age, education, and marital status.

scholarly journals Taxing Micro, Small and Medium Enterprises in Yogyakarta: Regulation and Compliance

BESTUUR ◽  
2021 ◽  
Vol 9 (1) ◽  
pp. 59
Author(s):  
Siti Rahma Novikasari ◽  
Duc Quang Ly ◽  
Kerry Gershaneck
Keyword(s):  
Tax Policy ◽  
Income Tax ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Legal Compliance ◽  
The Government ◽  
Medium Enterprises ◽  
Compliance Constraints

<p>Government Regulation No. 46/2013 has not been optimal in providing legal compliance on taxation for Micro, Small, and Medium Enterprises (MSMEs), especially in Yogyakarta. This policy was evaluated and amended with Government Regulation No. 23/2018. The amendment in tax policy for MSME actors was this research background to examine: First, how does the final income tax policy impact MSME taxpayers' compliance in Yogyakarta? Second, what are the legal compliance constraints of MSME taxpayers? The method used in this research was a juridical empirical, supported with the statute and conceptual approach. The results showed that the amendment in the final income tax tariff policy from 1% to 0.5%, as well as provide legal certainty of the timeframe of taxation had a positive impact on increasing taxpayer compliance. There was an increase in the number of taxpayers to 41,000 in 2019, or an increase of 15.5% compared to the number of taxpayers in 2017. However, tariff reduction has not been the answer to taxpayer non-compliance, the Regional Office of the Directorate General of Taxes of the Special Region of Yogyakarta still found tax avoidance. Tax compliance constraints were also caused by taxpayers' distrust of the government, poor tax morale, and tax knowledge. The government needs to conduct a cooperative compliance approach in taxation policies based on trust and dialogue between taxpayers and the government to improve MSME taxpayer compliance.</p><p><strong>Keywords:</strong> Tax Compliance; Final Income Tax Regulation; Micro; Small; Medium Enterprises.</p>

scholarly journals EFFECT OF CONSUMER PROTECTION FUNCTION ON FINANCIAL PERFORMANCE OF SACCOS IN KENYA

2016 ◽  
Vol 1 (2) ◽  
pp. 48
Author(s):  
Jackson Mnago Ndungo’ ◽  
Dr. Olweny Tobias ◽  
Dr. Memba Florence
Keyword(s):  
Correlation Analysis ◽  
Financial Performance ◽  
Consumer Protection ◽  
Causal Effect ◽  
Pearson Correlation ◽  
Secondary Data ◽  
Target Population ◽  
Descriptive Statistics ◽  
Accurate Information ◽  
Inferential Statistics

Purpose: The study sought to determine the effect of consumer protection function on financial performance of SACCOs in Kenya.Methodology: The study adopted a descriptive research design. The target population comprised of registered 181 deposit-taking SACCOs as at 31st December 2014 and the three licensed CRBs in Kenya. Stratified random sampling was used in the study, where SACCOs were grouped into five respective strata which were then randomly selected. The SACCOs were grouped into five respective strata of government based, teachers based, farmers based, private institutions based and community based. The study sampled 135 of the 181 (74.5%) licensed deposit taking SACCOs since these were the only licensed deposit-taking SACCOs by 2014. The choice of the licensed deposit taking SACCOs in Kenya was very objective since it was possible to obtain information that is representative of Kenya. In addition, SACCOs form the smaller arm in the financial sector and in most cases deals with a larger group of clients from the informal sector as opposed to other financial institutions like banks. Both primary and secondary data were analyzed using SPSS software, and statistics generated included descriptive statistics and inferential statistics. The particular descriptive statistics used included frequencies and percentages while the particular inferential statistics included Pearson correlation analysis and regression. Correlation analysis was used to establish relationships between the consumer protection function and financial performances. Regression analysis was used to establish the significance of the variables and the degree of causal effect of the independent variables on the dependent variable. The hypotheses testing were conducted using simple regression model.Findings: From the data analysis the study concluded that there was a significant and positive relationship between consumer protection function and financial performance thus the existence of credit reference bureaus was suitable for improving financial performance of SACCOs. This implies that that Credit reference bureaus have led to consumer protection and increased customers’ rights. Similarly, credit reference bureaus have led to assumption that borrowing is a right regardless of capabilities. Credit reference bureaus have reduces undesired monopolistic actions of lenders. Lastly, credit reference bureaus have led to reduced bad “culture” on loan repayment.Recommendation: The study recommended that lenders should ensure that they have accurate information before listing the unworthy borrowers to avoid unnecessary legal battles which may affect performance as a measure for customer rights protection.

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