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1 – 10 of 675Stephen Amponsah and Kofi Osei Adu
The purpose of the study is to analyse social and demographic factors that affect tax stamp compliance in Upper Denkyira East Municipal and Upper Denkyira West District in Ghana.
Abstract
Purpose
The purpose of the study is to analyse social and demographic factors that affect tax stamp compliance in Upper Denkyira East Municipal and Upper Denkyira West District in Ghana.
Design/methodology/approach
The study adopted a cross-sectional survey design to sample 783 micro-taxpayers through the use of multi-stage sampling technique. Primary data were collected from micro-taxpayers by using a structured interview. Ordered logit regression model was used to regress the extent of tax stamp compliance on socio-demographic factors in relation to tax stamp cases in the study area.
Findings
The study found that occupational association status, location, gender, type of business operated, age, level of education and household size are significant predictors of tax stamp compliance in the study area.
Originality/value
The originality of the study is in twofold. First, the study dwells on extant literature on social and demographic factors of tax compliance in general and specifically applies them to a special kind of presumptive tax, tax stamp, in Ghana. The study is also considered as the first of its kind to perform rigorous statistical analysis of social and demographic factors in relation to tax compliance.
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Stephen Amponsah, Zangina Isshaq and Daniel Agyapong
The purpose of this study is to examine tax stamp evasion at Twifu Atti-Morkwa and Hemang Lower Denkyira districts in the central region of Ghana.
Abstract
Purpose
The purpose of this study is to examine tax stamp evasion at Twifu Atti-Morkwa and Hemang Lower Denkyira districts in the central region of Ghana.
Design/methodology/approach
A cross-sectional survey design was adopted to sample 305 micro-taxpayers through the use of multi-stage sampling technique. Primary data were collected from the micro-taxpayers using structured interview. Binary and multinomial logit regression models were used to regress the tax stamp evasion on economic and non-economic factors.
Findings
The study found that the likelihood of micro taxpayers to evade tax stamp is predicted by age, application of sanctions, guilt feeling, transportation cost to tax office and rate of tax audit. Thus, the study found partial support for expected utility, planned behaviour and attributory theories in explaining tax evasion behaviour of micro-taxpayers.
Practical/implication
There are several measures of addressing tax evasion behaviour of micro taxpayers. Evasion behaviour can be deterred by enforcement strategies such as application of sanctions and regular tax audit, establishment of more tax offices in the districts and writing normative messages on the faces of tax stamp stickers.
Originality/value
This study helps explains the tax evasion behaviour of micro-taxpayers of a developing economy like Ghana using a special type of tax design meant to capture such taxpayers in the tax bracket. To the best of our knowledge, the study is unique in terms of the means of measuring tax evasion and the methodologies used.
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Theresia Woro Damayanti and Supramono Supramono
The study aims to empirically analyze the effects of the presence of female top managers and owners on corporate tax compliance.
Abstract
Purpose
The study aims to empirically analyze the effects of the presence of female top managers and owners on corporate tax compliance.
Design/methodology/approach
Data for analysis were sourced from the World Bank Enterprise Surveys that involved 23,178 private firms in 98 countries. The surveys used a stratified random sampling method by using three criteria, namely, firm size, business sector and geographic region, within each country. Further, data are analyzed using the ordinal logistic regression and supported by the marginal effect analysis.
Findings
The results show that the presence of female top managers and owners is a significant factor that underlies the firm-level tax compliance difference when firms exhibit relatively lower compliance.
Practical implications
Although this study shows that the determinants of corporate tax compliance are very complex, there are also crucial roles of top managers and owners' gender. This study advises firms to use the gender equality strategy to generate the best human capital, especially in their top management levels. Besides, this study can be helpful in designing policies that facilitate women to reach top managerial levels or to own businesses as an alternative method to enhance tax compliance for developing countries that fail to generate optimal corporate income tax revenues.
Originality/value
To the best of the authors’ knowledge, no previous studies examine the effects of the presence of female top managers and business owners on firms’ tax compliance policies. This study contributes to extend the understanding of the important role of women in corporate strategic decision-making, especially in taxation policies in various developing countries.
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Anthony Amoah, Edmund Kwablah, Benjamin Amoah and Kwame Adjei-Mantey
In countries where the electronic levy (e-levy) has been implemented, one question that resonates with the populace is, “how much would you want to pay for e-levy per…
Abstract
Purpose
In countries where the electronic levy (e-levy) has been implemented, one question that resonates with the populace is, “how much would you want to pay for e-levy per transaction?” In response, varied perspectives have been shared with no convergence. Against this background, this study seeks to estimate people's willingness to pay (WTP) for electronic transaction levy in Ghana, while analysing the associated determinants.
Design/methodology/approach
This study relies on a survey of 2,810 respondents obtained from February 9 to 16, 2022 in Ghana. A multivariate logit model was estimated with its marginal effects. Further, a robustness check was undertaken using the linear probability model to validate the results.
Findings
With respect to the sample, the authors find evidence that approximately 46% of the respondents are not willing to pay any amount per transaction for the e-levy. Second, about 21% of the respondents are willing to pay Ghs0.5% as e-levy per transaction. Furthermore, about 10% of the respondents are willing to pay 1% per transaction as e-levy. Those who indicated that they would pay rates above 1% (specifically, 1.50%–1.75%) per transaction are less than 5%. For flat rates, approximately 10% of the respondents were willing to pay Ghs5 per month for all transactions above Ghs100. All others who are interested in other flat rates together are less than 5% of the respondents. The key statistically significant determinants of the probability that an individual would be willing to pay for the e-levy are also provided. This study recommends a comprehensive dialogue between the government and all stakeholders to reach a reasonable conclusion on an acceptable e-levy rate and by extension, implementation strategies.
Originality/value
To the best of the researchers' knowledge, this is the first empirical study that estimates individuals' willingness to pay for e-levy on electronic transactions in a developing country.
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It is internationally acknowledged that small and medium enterprises (SMEs) play a vital role in enhancing a country’s economic growth and in creating jobs. It is therefore in the…
Abstract
It is internationally acknowledged that small and medium enterprises (SMEs) play a vital role in enhancing a country’s economic growth and in creating jobs. It is therefore in the public interest and in the interests of all governments to support SMEs. A study concentrating on the tax function in small and medium manufacturing concerns operating in the Gauteng Province in South Africa was recently undertaken. In this article, which is based on the study, the authors identify the main problem areas that manufacturing SMEs in the Gauteng Province have to cope with in administering government taxes. The article discusses the administration process only, and not the taxes themselves. The authors have identified tax compliance requirements in South Africa as a stumbling block for SMEs. They suggest that the government seriously consider reducing the number of taxes SMEs have to administer, reduce the compliance requirements and make additional tools available to SMEs to assist them in administering taxes.
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Kofi Osei Adu and Stephen Amponsah
This paper aims to examine the relationship between registration of business and tax payment among micro-business owners in Nkoranza South Municipal and Nkoranza North District in…
Abstract
Purpose
This paper aims to examine the relationship between registration of business and tax payment among micro-business owners in Nkoranza South Municipal and Nkoranza North District in Ghana.
Design/methodology/approach
Interview schedule was used to collect information from 720 micro business owners who qualify for tax stamps. The study used correspondence analysis as the analytical tool.
Findings
The study found a significant association between registration of business and tax payment. The biplot also indicated that unregistered businesses and businesses registered with District Assembly only are more likely to evade tax than those registered with Ghana Revenue Authority.
Originality/value
In Ghana, for instance, owner of business is required by law to provide information on his/her business, himself/herself and partners (as the case may be) to the Registrar-General Department, and thereafter, the business should also be registered at the nearest Ghana Revenue Authority District Office. This regulation was enacted in 2005, and it is expected that this registration will help tax authority in tax collection, as they will have adequate knowledge about businesses in the area including the location of the businesses. However, after 10 years in existence of this regulation, the effect of this registration requirement on tax payment in Ghana is not known. It is this gap that the present study seeks to fill by looking at the relationship between registration of business and tax evasion in the Ghanaian informal sector.
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Kofi Osei Adu and Stephen Amponsah
This paper aims to investigate the correlates of tax registration among self-employed in Upper Denkyira East municipal and Upper Denkyira West district in Ghana.
Abstract
Purpose
This paper aims to investigate the correlates of tax registration among self-employed in Upper Denkyira East municipal and Upper Denkyira West district in Ghana.
Design/methodology/approach
In all, 783 self-employed were interviewed and discriminant analysis was used to examine the factors that influence a self-employed person’s decision to register with Ghana Revenue Authority.
Findings
The study found that, age of the self-employed, number of times tax officers visit and inspect self-employed, experience in business, number of years of schooling, distance to tax office and estimated annual profit are important discriminants of tax registration compliance.
Originality/value
Tax registration is the fundamental element of tax compliance since any effort to exact compliance from taxpayers begins with registration with the tax authority. However, previous studies in the Ghanaian informal sector such as Baba (2010), Baba and Asante (2012) and Razak and Adafula (2013) have focused mainly on aggregate tax compliance (registration, filing, reporting and payment combined) without given specific attention to this fundamental component of tax compliance risk. Therefore, this study seeks to address the gap in the literature.
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Diarmaid Addison Smyth and Kieran McQuinn
The Irish fiscal position was significantly affected by the recent financial crisis. Budgetary surpluses quickly gave way to significant deficits post 2007, culminating into a…
Abstract
Purpose
The Irish fiscal position was significantly affected by the recent financial crisis. Budgetary surpluses quickly gave way to significant deficits post 2007, culminating into a lengthy excessive deficit procedure and entry into a formal EU/IMF assistance programme in 2010. Much of the deterioration in the public finances was caused by a sharp decline in property-related taxes because the Irish housing market rapidly contracted. In this paper, the authors quantify the extent to which disequilibria in the housing market can affect the tax take, finding significant implications over an extended period.
Design/methodology/approach
The authors attempt to quantify the extent of housing-related tax windfall gains and losses in Ireland over a 30-year period as a result of disequilibrium in the housing market. This involves a three-step modelling approach where we relate property-dependent taxes to the housing market while estimating equilibrium in the latter before solving for the tax take consistent with that equilibrium. In so doing, the authors find that the fiscal position compatible with equilibrium in the housing market has at times diverged greatly from actual outturns.
Findings
This paper confirms the significant role played by the housing market in influencing both the tax-take and the overall fiscal position. The authors find that there have been a number of instances where excesses in the housing market have spilled over into fiscal aggregates, notably in the housing bubble period between 2003 and 2008. However, with the on-going adjustments in the housing market, it would appear that prices and volumes have overcorrected in recent years. Overall, much greater emphasis should be given to the role of the housing market in forecasting key taxation aggregates.
Originality/value
The recent crisis highlighted how domestic policy mistakes (both in terms of budgetary planning and financial market regulation) can greatly amplify economic shocks. Irish budgetary policy in the run up to the financial crisis of 2008/2009 was clearly based on unsustainable levels of housing-related tax receipts. This paper highlights the need for a much more granular approach in framing tax forecasts and in assessing the public finances by more explicitly factoring in housing market developments.
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This article reports on a study on the value‐added tax (VAT) levied on new residential properties sold to individuals by developers registered for VAT purposes. The objective of…
Abstract
This article reports on a study on the value‐added tax (VAT) levied on new residential properties sold to individuals by developers registered for VAT purposes. The objective of the research was to evaluate the current VAT provisions applicable to new residential properties in South Africa by measuring them against the principles of taxation, and by comparing the results with those obtained for the United Kingdom, Canada and Australia. Similarities and differences are established and evaluated. It is recommended that the supply of new residential properties in South Africa be zero rated.
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The retail sales tax has provided a strong foundation for American state government finance since its beginnings in the Great Depression. However, its position as a productive…
Abstract
The retail sales tax has provided a strong foundation for American state government finance since its beginnings in the Great Depression. However, its position as a productive, reliable, and administrable revenue source is now under challenge from three forces. First, it continues as a tax primarily on purchases of tangible personal property, despite the shift in consumption toward services. Second, the physical presence rule for taxation of sales by remote vendors creates an intolerable imbalance between local and remote sellers. And third, legislatures keep gnawing away at the base with politically attractive but fiscally unjustifiable exemptions. In total, the position of the sales tax as a viable and defensible revenue alternative is at risk.