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1 – 10 of over 12000Night Sadress, Juma Bananuka, Laura Orobia and Julius Opiso
The purpose of this study was to investigate the contribution of attitude towards electronic tax system, adoption of electronic tax system and isomorphic forces to tax compliance…
Abstract
Purpose
The purpose of this study was to investigate the contribution of attitude towards electronic tax system, adoption of electronic tax system and isomorphic forces to tax compliance of small business enterprises (SBEs) in a developing country in a single study.
Design/methodology/approach
This study is cross-sectional and correlational. Data were collected through a questionnaire survey of 214 owner-managed SBEs in Uganda through their managers. Data were analysed using Statistical Package for Social Sciences.
Findings
Attitude towards electronic tax system, adoption of electronic tax system and isomorphic forces significantly contribute to tax compliance to the extent of 57.4 per cent. Isomorphic forces have a high predictive power of tax compliance as compared with attitude towards electronic tax system. Further, coercive, normative and mimetic isomorphism as constructs of isomorphic forces are significantly associated with tax compliance.
Research limitations/implications
Given that this study was cross-sectional, monitoring changes in behaviour over time was not possible. The results are useful for policy makers and taxpayers in developing countries. These results can also be generalized to other developing countries especially those in Africa and other continents dominated by developing countries.
Originality/value
To the researchers’ knowledge, this is the first study to examine the contribution of attitude towards electronic tax system, adoption of electronic tax system and isomorphic forces to tax compliance of SBEs in a developing country in a single study on the African scene.
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Sadress Night and Juma Bananuka
The purpose of this paper is to examine the mediating effect of adoption of electronic tax system in the relationship between attitude towards electronic tax system and tax…
Abstract
Purpose
The purpose of this paper is to examine the mediating effect of adoption of electronic tax system in the relationship between attitude towards electronic tax system and tax compliance using evidence from small business enterprises (SBEs) of an African developing economy.
Design/methodology/approach
This study used a quantitative research approach where questionnaires with close-ended questions were used. This study’s research design was cross-sectional and correlational. Usable questionnaires were received from 214 managers of SBEs, and data were analysed with the help of SPSS v22 and MedGraph program (Excel version).
Findings
Adoption of electronic tax system is a partial mediator in the association between attitude towards electronic tax system and tax compliance. Results further indicate that adoption of electronic tax system and attitude towards electronic tax system are significantly associated with tax compliance.
Research limitations/implications
This study was cross-sectional, and monitoring changes in behaviour over time was not possible. The study used a quantitative research approach, and this limits respondents from expressing their feelings fully. The study was conducted in Uganda, and it is possible that the results of this study can be generalized to developing countries with environments similar to that of Uganda.
Originality/value
Whereas there has been a number of studies on tax compliance, this study provides an initial empirical evidence on the mediation effect of adoption of electronic tax system in the relationship between attitude towards electronic tax system and tax compliance using evidence from SBEs of an African developing economy – Uganda.
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Rida Belahouaoui and El Houssain Attak
This paper aims to analyze the impact of tax digitalization, focusing on artificial intelligence (AI), machine learning and blockchain technologies, on enhancing tax compliance…
Abstract
Purpose
This paper aims to analyze the impact of tax digitalization, focusing on artificial intelligence (AI), machine learning and blockchain technologies, on enhancing tax compliance behavior in various contexts. It seeks to understand how these emerging digital tools influence taxpayer behaviors and compliance levels and to assess their effectiveness in reducing tax evasion and avoidance practices.
Design/methodology/approach
Using a systematic review technique with the Preferred Reporting Items for Systematic Reviews and Meta-Analyses method, this study evaluates 62 papers collected from the Scopus database. The papers were analyzed through textometry of titles, abstracts and keywords to identify prevailing trends and insights.
Findings
The review reveals that digitalization, particularly through AI and blockchain, significantly enhances tax compliance and operational efficiency. However, challenges persist, especially in emerging economies, regarding the adoption and integration of these technologies in tax systems. The findings indicate a global trend toward digital Tax Administration 3.0, emphasizing the importance of regulatory frameworks, capacity building and simplification for small and medium enterprises (SMEs).
Practical implications
The findings provide guidance for policymakers and tax administrations, underscoring the necessity of strategic planning, regulatory backing and global cooperation to effectively use digital technologies in tax compliance. Emphasizing the need for tailored support for SMEs, the study also calls for expanded research in less represented areas and specific sectors, such as SMEs and developing economies, to deepen global insights into digital tax compliance.
Originality/value
This study has attempted to fill the gap in the literature on the comprehensive impact of fiscal digitalization, particularly AI-based, on tax compliance across different global contexts, adding to the discourse on digital taxation.
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Petros Lois, George Drogalas, Alkiviadis Karagiorgos and Aikaterini Chlorou
Governments count on tax revenues in order to finance their fiscal and social activities. The purpose of this paper is to analyse the citizens’ conception of tax compliance and…
Abstract
Purpose
Governments count on tax revenues in order to finance their fiscal and social activities. The purpose of this paper is to analyse the citizens’ conception of tax compliance and examine the factors affecting tax behaviour.
Design/methodology/approach
This survey was conducted through a stratified sample and questionnaires consisted of closed-ended questions. A linear regression and a series of reliability tests including an analysis of variance were conducted with IBM Statistical Package for Social Sciences.
Findings
The majority of the respondents demonstrate a positive perspective towards tax compliance and tax administration employees that inspire it. However, while the fairness of the tax system is evident, findings indicate a deeper issue of social and behavioural influences, including the characteristics of tax administrative employees and tax morality.
Research limitations/implications
The findings are subject to over- or sub-representation, since the sample derived from groups whose occupations feature strong tax compliance. The study was conducted in Greece, and it is possible that the results can be generalised to developing countries with similar economic environments and fiscal circumstances.
Practical implications
Non-economic factors affect tax behaviour and the formation of modern tax strategies. This survey enables governments to improve tax compliance rates and increase tax revenues. Fiscal depression tends to decrease state revenues. Tax compliance factors should be taken into account through tax decision-making processes and ensure efficient tax collection.
Originality/value
This paper furthers the existent literature and deepens in non-economic factors of morality, revealing tax behaviours instigated by reasons beyond tax unfairness.
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Christie L. Comunale, Charles A. Barragato and Denise Buhrau
In this study, we examine the role of temporal framing in the context of tax audit risk. Using construal-level theory, we propose that compared with an every-year frame (e.g., 1.5…
Abstract
In this study, we examine the role of temporal framing in the context of tax audit risk. Using construal-level theory, we propose that compared with an every-year frame (e.g., 1.5 million returns are audited every year), framing audit risk in an everyday frame (e.g., 4,000 returns are audited every day) will make audit risk seem more likely and thus increase taxpayer compliance. We test whether perceived fairness of the tax system, an individual difference variable related to tax compliance, moderates the effect of temporal framing on behavioral intentions. The results show that communicating risk in a day frame rather than a year frame increases compliance for taxpayers who perceive the tax system as unfair but not for taxpayers who perceive the tax system as fair. Increasing compliance among taxpayers who perceive the tax system as unfair is crucial, as they are less likely to be compliant. Thus, framing audit risk can assist in increasing taxpayer compliance.
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Rida Belahouaoui and El Houssain Attak
This study aims to understand the interaction between tax fairness perceptions, equitable tax burden distribution and tax compliance within Morocco’s unique socio-economic…
Abstract
Purpose
This study aims to understand the interaction between tax fairness perceptions, equitable tax burden distribution and tax compliance within Morocco’s unique socio-economic context, with the goal of uncovering strategies to enhance tax compliance.
Design/methodology/approach
Using the Delphi method, this study engaged tax experts in the Moroccan context to explore the impact of taxpayers’ perception of fairness, tax rates and tax burden on compliance. Their responses were gathered and analyzed with the aid of IRaMuTeQ software, which helped the authors identify themes relevant to the research question.
Findings
The preliminary results indicate a positive correlation between perceptions of tax fairness and compliance behavior, corroborating earlier studies conducted in different contexts. Notably, a substantial majority of Moroccan taxpayers perceive the current tax system as inequitable, deeming tax rates too high and the tax burden unfairly distributed among various taxpayer categories. This perception potentially influences their voluntary tax compliance behavior.
Practical implications
The findings have significant policy implications for the Moroccan Government and stakeholders. They suggest that by improving tax fairness, particularly by aligning tax assessment and payment modalities for employees, civil servants and small to medium enterprises, policymakers can encourage higher voluntary tax compliance, thereby potentially enhancing the efficiency of the Moroccan tax system.
Originality/value
This study adds to the existing body of knowledge by exploring the dynamics of tax fairness and compliance behavior in Morocco, a context which has been significantly understudied.
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Lin Mei Tan and Carrol Chin‐Fatt
Positive attitudes towards factors such as the perceived fairness of the tax system are considered to play an important role in the level of tax compliance within a country…
Abstract
Positive attitudes towards factors such as the perceived fairness of the tax system are considered to play an important role in the level of tax compliance within a country (Strumpel, 1968). The tax literature indicates that not only knowledge but an understanding of the tax system may have an effect on taxpayers' perceptions of fairness and attitudes towards compliance. This study examines the linkages between an increase in tax knowledge on perceptions of fairness and tax compliance attitudes by using students enrolled in an introductory taxation course in a New Zealand tertiary institution. Contrary to prior research, the results indicated that an increase in tax knowledge did not have a significant impact on perceptions of fairness and tax compliance attitudes.
Susan Jurney, Tim Rupert and Marty Wartick
Generational theory research suggests that the arrival of the Millennial generation into adulthood will have significant effects on society because of their differing values and…
Abstract
Generational theory research suggests that the arrival of the Millennial generation into adulthood will have significant effects on society because of their differing values and attitudes. We examine whether this generation has differing perceptions of tax fairness as well as their attitudes towards tax compliance as compared to other generations by administering an instrument to a sample of 303 taxpayers, distributed approximately equally across three generational groups: Baby Boomers, Generation X, and Millennials. The results suggest that there are significant differences in the viewpoints toward vertical equity and progressive taxation among the three generations. More specifically, the Millennial generation was less likely to recommend progressive taxation than the other two generations. In addition, there were significant differences between the groups on an exchange equity question as well. However, in this situation, it was the Baby Boomers that were significantly different from the other two generations. The results also suggest that the Millennials have attitudes that are more accepting of noncompliance than both the Generation X participants and the Baby Boomer participants. However, a significant difference does not exist between the Baby Boomer participants and Generation X participants on their attitudes towards compliance.
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Stephen Korutaro Nkundabanyanga, Philemon Mvura, David Nyamuyonjo, Julius Opiso and Zulaika Nakabuye
The purpose of this paper is to establish the relationship between perceived grounds for tax non-compliance or compliance behaviors and perceived tax compliance factors.
Abstract
Purpose
The purpose of this paper is to establish the relationship between perceived grounds for tax non-compliance or compliance behaviors and perceived tax compliance factors.
Design/methodology/approach
The study employed a correlational and cross-sectional survey design seeking to understand tax compliance by taxpayers’ perceptions in Uganda. Data from 205 respondents to the questionnaire were analyzed using Statistical Package for Social Scientists and structural equation modeling with analysis of moment structures.
Findings
Governmental effectiveness, transparent tax system (TTS) and voice and accountability (VA) are perceived grounds for tax compliance or non-tax compliance and, as indicators of tax administration significantly influence variances in tax compliance. Tax compliance in Uganda is indicated by perceived worth and distribution of public expenditure (WDPE), level of taxation, inequalities in the tax system and tax evasion.
Research limitations/implications
No distinction is made between actual and potential taxpayers. Still, the results can contribute to our understanding of tax compliance puzzle from the behavioral angle. Factors such as perceived WDPE indicate a taxpayer’s compliance decision and factors such as governmental effectiveness explain that decision. Additional government policy requirements beyond greater enforcement actions by the tax authorities should be cultivated.
Originality/value
Results contribute to extending the basic tax effort model by establishing the extent to which VA, TTS and governmental effectiveness (GEF) matter in a developing country context. The study presents tax compliance as a taxpayer’s decision that is informed by perceptions and shows that factors increasing the taxpayers’ perceptions about VA and GEF relate to the importance that their perceptions have in their tax compliance decisions.
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Prianto Budi Saptono and Ismail Khozen
Even as governments worldwide take extraordinary measures and spend unprecedented amounts of their state budgets to combat COVID-19, tax compliance remains challenging. Therefore…
Abstract
Purpose
Even as governments worldwide take extraordinary measures and spend unprecedented amounts of their state budgets to combat COVID-19, tax compliance remains challenging. Therefore, this study employs previously identified predictors to investigate the factors that persuade individual taxpayers to comply with the law.
Design/methodology/approach
Individual taxpayers in Indonesia (N = 699) who had experienced COVID-19-related benefits were asked to assess the provided evaluation regarding the tax compliance intention and its determinants. The bootstrapping analysis was employed using smart partial least squares (SmartPLS) to test the hypotheses.
Findings
The results suggest that the perceived fiscal exchange, tax morality, tax fairness, tax complexity and the power of authority are significant determinants of tax compliance intention. This study also supports the indirect effects of numerous factors on tax compliance intention through the perceived fiscal exchange and tax morality. In practice, reminding taxpayers of how tax payments fund public services, improving taxpayer morale, increasing the perceived fairness of the tax system, streamlining the tax code and managing the effectiveness of tax administration could all lead to a greater intention to comply with the law.
Originality/value
In addition to highlighting the dynamics of tax compliance amid the unprecedented pandemic crisis, our findings also provide insight into the importance of perceived fiscal exchange and tax morality for achieving and sustaining planned behavior to comply with tax rules.
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