scholarly journals The Effect of on tax professionals ' perception of tax complexity on tax compliance behavior

2020 ◽  
Vol 8 (30) ◽  
pp. 81-105
Author(s):  
Fatemeh Kaghazloo ◽  
Mehdi Baharmoghadam ◽  
Alireza Rahimi ◽  
◽  
◽  
...  
Keyword(s):  
Tax Compliance ◽  
Compliance Behavior ◽  
Tax Professionals ◽  
Tax Complexity

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.

scholarly journals EXAMINING THE INFLUENCE OF FAIRNESS PERCEPTION ON TAX COMPLIANCE BEHAVIOR OF THE LIBYA INDIVIDUAL TAXPAYERS: THE MODERATING TAX AWARENESS AND TAX COMPLEXITY

2019 ◽  
Vol 7 (2) ◽  
pp. 519-525
Author(s):  
Morni Hayati Jaafar Sidik ◽  
Gholam Reza Zandi ◽  
Al Seddig Alshadli Ruhoma
Keyword(s):  
Tax Compliance ◽  
Fairness Perception ◽  
Distributive Fairness ◽  
Perceptions Of Fairness ◽  
Compliance Behavior ◽  
Tax Complexity ◽  
Improve Compliance ◽  
Definition Of ◽  
Search Design ◽  
The Impact

Purpose of Study: This study examines the impact of the perceptions of fairness among Libyan taxpayers in the Libyan income tax system, where a multidimensional model of justice was introduced. This extends the definition of justice from one to distributive fairness and procedural fairness, along with tax awareness and tax complexity as moderators’ variables. This study is one of the first studies that test the impact of tax awareness and tax complexity as moderators’ variables on tax compliance behavior in a country. Methodology: Despite the importance of collecting taxes from individual taxpayers, it is a little known about the behavior of tax compliance in general in the Libyan context. This is important for tax authorities to identify behavioral factors that may hinder the successful tax compliance so that remedial action can be taken to improve compliance behavior. It remains currently a severe challenge for the Libyan tax authorities. Results: The results of this research will contribute significantly to the paucity of current literature on the role of tax awareness and tax complexities as moderators’ variables on tax compliance behavior, particularly in developing countries. The serial exploratory search design will be used in this study. The sub-squares analysis will be used to analyze the surveys.

A Conceptual Model of Zakat Payers' Trust in a Zakat Institution in Kelantan

2021 ◽  
Vol 12 (1) ◽  
pp. 82-82
Author(s):  
Rufaidah Mat Nawi ◽  
Nadzirah Mohd Said ◽  
Hazriah Hasan
Keyword(s):  
Conceptual Model ◽  
Management Practices ◽  
Stakeholder Management ◽  
Tax Compliance ◽  
The Self ◽  
Compliance Behavior ◽  
The Future

Zakat institutions are obliged to collect zakat from every eligible Muslim because their existence manages the institution by distributing the wealth from the wealthy Muslims to zakat asnafs. However, the zakat institutions still fail to ensure that every one of zakat payers will comply with paying through the institutions. Zakat payers' trust affects their zakat compliance behavior (Mustafa et al., 2013). According to research done by Faizal and Ramli (2017), compliance behavior is one factor that influences the act of tax compliance. This finding supports the prior studies by Kastlunger et al. (2013), who say that high trust causes the increase in tax compliance. The same case goes with paying zakat. Zakat payers' trust is essential in ensuring zakat payers pay zakat through the formal channels. According to Ahmad, Wahid, and Mohamad (2006), zakat payers' dissatisfaction towards zakat distribution practices by zakat institutions leads them to pay zakat directly to asnafs. Thus, this proves that lack of trust by zakat payers can increase the self-distribution practice and leakage in zakat collection. According to a report by Populus (2018), donors are most likely to donate their money to support causes by charities if charities are good at managing funds and demonstrate impacts for their causes. Otherwise, they will lose trust in those charities. As in this study, the main focus to study zakat payers' trust is to reduce the increase in self-distribution practice and gradually lead to maximize the zakat collection in the future. Based on that reason, this study determines which factors should be focused on to increase zakat payers' trust. The proposed factors in this study are disclosure practices, council board, and stakeholder management practices. Thus, the paper aims to develop a conceptual model of zakat payers' trust in a zakat institution in Kelantan. Keywords: Council board; Disclosure practices; Stakeholder management practices; Zakat payers' trust.

scholarly journals Studi Keperilakuan Wajib Pajak Orang Pribadi Usahawan Terhadap Kepatuhan Perpajakan

2019 ◽  
Vol 19 (2) ◽  
pp. 108
Author(s):  
Sifera Patricia Maithy ◽  
Sutrisno Sutrisno ◽  
Bambang Hariadi
Keyword(s):  
Data Collection ◽  
Learning Theory ◽  
Social Learning Theory ◽  
Tax Compliance ◽  
Subjective Norms ◽  
Survey Method ◽  
Behavior Control ◽  
Factors Affecting ◽  
Compliance Behavior ◽  
Compliance Model

This study aims to examine the taxpayer compliance behavior of individuals on all tax obligations. Factors affecting taxpayer compliance behavior of individual taxpayers in this study are attitudes toward taxes, subjective norms, control of perceptive behavior, tax knowledge, and intention to obey. This research is the development of tax compliance model from previous research. The sample of this research is 160 individual taxpayer individual entrepreneur category registered in KPP Pratama Palangka Raya. Data collection was done by survey method. Data is processed using SmartPLS. The results of this study obtained empirical evidence that attitudes on taxes, subjective norms, perceptual behavior control, tax knowledge, and intention to obediently affect taxpayer compliance personal taxpayer. This research also supports the theory of planned behavior and social learning theory.

An Examination of the Role of Ethics in Tax Compliance Decisions

2005 ◽  
Vol 27 (1) ◽  
pp. 39-72 ◽  
Author(s):  
B. Charlene Henderson ◽  
Steven E. Kaplan
Keyword(s):  
Tax Compliance ◽  
Ethical Beliefs ◽  
Ethical Orientations ◽  
Compliance Behavior ◽  
Proposed Model ◽  
Ethical Evaluations ◽  
Study Support ◽  
Compliance Decisions ◽  
The Relationship

The relationship between ethical beliefs and tax compliance is well documented, but extant research has not explored the relationships among general ethical beliefs, contextual ethical beliefs, and tax compliance behavior. In this study we propose a model that is intended to clarify the mechanisms through which ethical beliefs impact tax compliance. In the model, contextual ethical beliefs represent the mechanism through which individuals' general ethical beliefs impact tax compliance behavior. The model is tested using participants' ethical orientations as measures of their general ethical beliefs and using participants' ethical evaluations of others' tax compliance decisions as measures of their contextual ethical beliefs. Tax compliance behavior is inferred from participants' estimates of the likelihood that they would evade. Overall, the findings from our study support the proposed model. Ethical orientations are directly related to ethical evaluations; ethical evaluations directly predict tax compliance behavior; and finally, ethical orientations are indirectly related to tax compliance behavior. That is, ethical orientations influence tax compliance behavior, but only through their influence on ethical evaluations. We believe that the proposed model provides an important contribution by providing a framework that outlines the routes through which ethical beliefs impact tax compliance.

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.

Tax Compliance Behavior

2016 ◽  
pp. 248-267 ◽  
Author(s):  
Larissa Batrancea ◽  
Anca Nichita ◽  
Ioan Batrancea ◽  
Erich Kirchler
Keyword(s):  
Cluster Analysis ◽  
High Power ◽  
Tax Compliance ◽  
Economic Market ◽  
International Assistance ◽  
Mena Countries ◽  
Compliance Behavior ◽  
Trust And Power ◽  
Fierce Competition ◽  
Gallup World Poll

The volatility of the global economic market and the fierce competition in attracting foreign investments have determined European and MENA authorities to reconsider interactions with taxpayers. Thus, benefitting from international assistance, authorities have started implementing tax strategies and models like co-operative compliance, horizontal monitoring, whistleblowing. This empirical investigation is grounded on the “slippery slope” framework that attempts to solve the “riddle of tax compliance” via trust in and power of authorities. The former is proxied by “Trust in national government” (Gallup World Poll), the latter by “Rule of law” (World Bank). The two-step cluster analysis run on 215 countries worldwide, including 35 from Europe, 12 from MENA, yielded four tax climates: trust and power high (T+P+), trust and power low (T-P-), trust high-power low (T+P-), trust low-power high (T-P+). While the majority of European countries are spread between T+P+ and T-P+, MENA countries generally belong to T-P-, demanding stability and efficiency in all major areas of the societies.

scholarly journals Who Responds? Disentangling the Effects of Audits on Individual Tax Compliance Behavior

2020 ◽  
Vol 48 (2) ◽  
pp. 147-159 ◽  
Author(s):  
James Alm ◽  
Ali Enami ◽  
Michael McKee
Keyword(s):  
Tax Compliance ◽  
Compliance Behavior
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