scholarly journals Factors Influencing Tax Compliance Intention Among Sole Proprietors: A Proposed Model

2019 ◽  
Vol 3 (3) ◽  
pp. 14-26
Author(s):  
Razilina A Razak ◽  
Zainol Bidin
Keyword(s):  
Information Dissemination ◽  
Data Gathering ◽  
Tax Compliance ◽  
Expected Utility Theory ◽  
Economic Consequences ◽  
Mediating Effect ◽  
Tax Administration ◽  
Unique Problem ◽  
Voluntary Compliance ◽  
Tax Laws

Tax non-compliance is a unique problem as it does not only depend on the economic consequences but also the result of the combination of factors such as psychological, sociological, ethics, enforcement, tax administration, and demographics. Various strategies have been introduced by the Inland Revenue Board of Malaysia (IRBM) to combat non-compliance problems in Malaysia such as taxpayers education, programs to increase tax awareness, tax audit, and tax investigation. Hence, in this study, we have developed a new model to predict the intention to comply among sole proprietors in Malaysia. The model is based on the Theory of Planned Behavior associated with the Expected Utility Theory and Deterrence Theory. The potential factors that influence the intention to comply with tax laws such as attitude towards the intention to comply, audit factors that consist of penalty rates and the probability of being audited, opportunity and subjective norms are studied. The mediating effect of information dissemination is also examined in this study. Non-audited taxpayers are chosen as a sample to measure voluntary compliance instead of enforced compliance. This research had adopted quantitative method of data gathering by way of questionnaire. Voluntary compliance is the key to a successful tax administration. Thus, it is very critical for IRB to determine the factors that can influence the intention to comply voluntarily with tax laws.  

scholarly journals Demographic and Socio-Economic Factorts as Determinants of Tax Complaince in Self-Assessment System (Sas) In Akwa Ibom State, Nigeria

2020 ◽  
Vol 8 (5) ◽  
pp. 112-136
Author(s):  
Nsima Johnson Umoffong ◽  
Etim Osim Etim ◽  
Daniel Okon Bassey
Keyword(s):  
Tax Compliance ◽  
Income Level ◽  
Negative Influence ◽  
Assessment System ◽  
Tax Administration ◽  
Self Assessment ◽  
Level Of Education ◽  
Voluntary Compliance ◽  
Tax Payers ◽  
Perception Of Equity

The study examined three determinants of voluntary compliance in self-assessment system of tax administration in Akwa Ibom State, Nigeria. This was motivated by the growing need to increase tax revenues generation in developing countries the tax revenue as a ratio of Gross Domestic Product is below the global average and tax administration machinery has been ineffective. Data for the study were collected using a structured questionnaire from respondents registered with the state Board of Internal Revenue determined using Taro Yamene’s Statistical Formula. Descriptive and Regression Analyses were adopted for data treatment. The model summary reveals that 80.8% of the variation in Tax compliance is accounted for the variables of perception of equity and fairness, income level and level of education of the tax payers. The ANOVA Summary justifies that the independent variables have significant influence on tax compliance with f-calculated value of 233.763 being greater than the critical f-value of 0.308451 at P<0.05. The regression coefficient indicates a positive and significant relationship between perception of equity and fairness (0.260), level of education (0.103) and tax compliance. Income level (-0.055) has negative influence on tax compliance. It is recommended that tax authorities should evolve a framework that will motivate, control, sensitize and educate tax payers on voluntary compliance in Self-Assessment system.

scholarly journals Analysis of the Determinants of Tax Policy Compliance in Nigeria

2020 ◽  
Vol 10 (2) ◽  
pp. 34
Author(s):  
Robert Dibie ◽  
Raphael Dibie
Keyword(s):  
Tax Evasion ◽  
Tax Policy ◽  
Positive Relationship ◽  
Compliance Rate ◽  
Tax Compliance ◽  
Assessment System ◽  
Tax Administration ◽  
Strong Positive Correlation ◽  
Policy Compliance ◽  
Tax Laws

This paper examines the factors that determines tax policy compliance and the impediments to effective tax administration in Nigeria. The objectives are to: (a) determine if there is a relationship between knowledge of tax laws and compliance in Nigeria; and (b) if there is a positive relationship between corruption and tax compliance. The paper argues that taxpayers’ knowledge of Nigerian tax laws could positively influence citizens attitude and behavior towards compliance. The primary data were derived from interviews, and questionnaires. The conceptual frameworks are based on strategic and benchmark approaches, and principal agent model. The data analysis shows that there is a strong positive relationship between lack of tax knowledge, low level of education and tax compliance in Nigeria. The findings of this study also reveal that there is a strong positive correlation between corruption and tax evasion. The inadequate use of information technology in tax administration, and lack of government incentives as well as poor working condition have negative correlation with tax collection management. There is however significant relationship between inappropriate assessment system, poor economic situation in the country, and lower tax compliance rate in the country. Some benchmark strategic policy recommendations are provided on how to better implement tax compliance laws in Nigeria in the future.

Data Gathering and Information Dissemination for Semiarid Regions

2012 ◽  
pp. 197-210
Author(s):  
T. V. Prabhakar ◽  
H. S. Jamadagni ◽  
Hendrik Knoche ◽  
P. R. Sheshagiri Rao
Keyword(s):  
Information Dissemination ◽  
Data Gathering ◽  
Semiarid Regions

scholarly journals New horizons of tax administration

2020 ◽  
pp. 114-120
Author(s):  
Alyeksandr Dyemin
Keyword(s):  
21St Century ◽  
Financial Support ◽  
Tax Compliance ◽  
Basic Research ◽  
Tax Administration ◽  
New Horizons ◽  
Scientific Project ◽  
Tax Systems

The article analyzes new trends in tax administration, which are actively discussed by foreign experts. The author concludes that the tax systems of modern states are undergoing a serious transformation today, promptly and adequately responding to the challenges of the 21st century. Tax administration should be expressed not in the confrontation of taxpayers with tax authorities, but in their interaction and cooperation. The study was carried out with financial support from the Russian foundation for basic research in the framework of the scientific project no. 20-011-00080 “Tax Compliance and Legal Means of Its Support”.

scholarly journals The Mediating Effect of Tax Fairness on the Relationship Between Knowledge, Complexity and Voluntary Tax Compliance

2016 ◽  
Vol 9 (1) ◽  
pp. 1-12
Author(s):  
Anna Azriati Che Azmi ◽  
Suria Zainuddin ◽  
Mohd Zulkhairi Mustapha ◽  
Yusni Nawi
Keyword(s):  
Tax Compliance ◽  
Mediating Effect ◽  
The Relationship ◽  
Tax Fairness

Legitimate authorities and rational taxpayers: An investigation of voluntary compliance and method effects in a survey experiment of income tax evasion

2018 ◽  
Vol 30 (2) ◽  
pp. 247-301 ◽  
Author(s):  
Blaine Robbins ◽  
Edgar Kiser
Keyword(s):  
Tax Evasion ◽  
Economic Model ◽  
Income Tax ◽  
Tax Compliance ◽  
Order Effects ◽  
Survey Experiment ◽  
Missing Information ◽  
Information Effects ◽  
Voluntary Compliance ◽  
Method Effects

In order to collect the revenue necessary to fund public goods, a state is often required to both deter tax evasion and encourage voluntary tax compliance on the part of its citizens. While most prior research has focused on explaining tax evasion with standard economic model parameters, there has been growing interest in identifying the determinants of voluntary compliance. We build on this work by proposing a legitimacy-based model of tax compliance that accounts for why some citizens voluntarily comply with their tax obligations and others do not. To test our model, we develop and administer a survey experiment of income tax evasion to a large random sample of undergraduate students. We also investigate the extent to which design-based method effects bias our results, such as order effects, complexity effects, and missing information effects. Substantively, results strongly support the standard economic model of deterrence and weakly support the legitimacy-based model of voluntary compliance. Methodologically, we find no evidence of order effects, weak evidence of complexity effects, and suggestive evidence of missing information effects.

The value-added tax refund problems in developing countries – case of Zimbabwe

2021 ◽  
Vol 2021 (1) ◽  
pp. 133-148
Author(s):  
Passionate Siwela
Keyword(s):  
Developing Countries ◽  
Processing System ◽  
Value Added ◽  
Tax Administration ◽  
Value Added Tax ◽  
Domestic Legislation ◽  
Tax Laws ◽  
Tax Design

Refund abuse is especially problematic when implementing value-added tax (VAT). Nevertheless, refunds must be paid promptly to ensure that VAT does not become a cost to business. There is therefore a need to strike a balance between procedures put in place to limit refund fraud opportunities and not causing refund delays. It is against this background that the study sought to investigate the refund processing system in Zimbabwe to highlight potential challenges faced by taxpayers and tax administrators. Evidence was collected by reviewing domestic legislation and other published literature, analysing the administration processes, including administering taxpayers and tax administrators surveys. The study found weaknesses in tax design and administration processes that created opportunities for refund fraud, fraudsters and tax planners taking advantage of the weak structures, taxpayers who fear pursuing their rights (as that will trigger a comprehensive audit), and a general unwillingness of the tax administration to invoke existing tax laws.

Tax Reforms and Tax Compliance: The Divergent Paths of Chile and Argentina

2003 ◽  
Vol 35 (3) ◽  
pp. 593-624 ◽  
Author(s):  
MARCELO S. BERGMAN
Keyword(s):  
Tax Reform ◽  
Tax Compliance ◽  
Comprehensive Approach ◽  
Tax Administration ◽  
Tax Reforms ◽  
Political Economic

This article compares the effects of tax reform on tax compliance in Argentina and Chile. After constructing three different comparative indexes of tax compliance, it proposes a comprehensive approach, which includes political, economic and sociological explanations to address the different behaviour of taxpayers in each country. It concludes that Chile was able to enhance better tax compliance because it has implemented a permanent, stable and rational policy that allowed for the development of an effective tax administration – a process never fully accomplished in Argentina. Tax reforms may enhance better compliance only after they reverse the entrenched evasion strategies of the taxpayers.

scholarly journals The tax compliance risk for bank payment transactions in the tax administration context in Vietnam

2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Dung Tien Vo
Keyword(s):  
Risk Management ◽  
Developing Countries ◽  
Tax Compliance ◽  
Tax Administration

The article provides the reference on tax compliance risk for bank transactions payments by businesses in the context of developing countries such as Vietnam, as tax departments are gradually modernizing the tax administration, the use of taxpayer data between tax department and banks are not good. The review of the materials examines the issues involved in the field of tax compliance risk management and to identify gaps in the study of a tax compliance risk.

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