Search results
1 – 10 of 122Sadress 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.
Details
Keywords
Jennifer Anna Stark and Erich Kirchler
The purpose of this paper is to investigate the relationship of inheritance tax behavior with normative value principles and factors found relevant for income tax compliance…
Abstract
Purpose
The purpose of this paper is to investigate the relationship of inheritance tax behavior with normative value principles and factors found relevant for income tax compliance. Also, it examines the influence of affectedness and earmarking on inheritance tax compliance. Furthermore, it compares two countries similar in tax morale, tax culture as well as dominant normative value principles, Austria and Germany, of which one – Germany – levies inheritance taxes and the other – Austria – is debating its reintroduction.
Design/methodology/approach
A two (affected vs nonaffected) by two (Austria vs Germany) by two (inheritance tax vs stock profit tax) by three (no earmarking vs social justice earmarking vs equality of opportunity earmarking) experimental online questionnaire was conducted with 296 Austrians and 230 Germans.
Findings
Normative value principles and other socio-psychological variables play an important role concerning inheritance tax behavior. Affectedness does not influence inheritance tax compliance. Earmarking inheritance tax to projects corresponding to these value principles increases inheritance tax compliance in the Austrian sample and could represent a measure to increase inheritance tax compliance in countries implementing inheritance tax or increasing inheritance tax.
Originality/value
This study draws a comprehensive picture of the socio-psychological variables relevant to inheritance tax behavior and tests the effect of earmarking as a policy measure to increase inheritance tax compliance.
Details
Keywords
This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in…
Abstract
Purpose
This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in developing countries.
Design/methodology/approach
This paper utilizes a positivist research framework and adopts a theoretical method of analysis, although secondary data will also be mentioned to support theoretical arguments whenever it is appropriate to do so.
Findings
A high rate of collusive tax corruption is inevitable in developing countries.
Research limitations/implications
The model is static and needs to be extended into a dynamic model.
Practical implications
Traditional enforcement tools such as higher audits or a higher penalty regime against tax evasion do not work. Tax simplification can lessen the incidence of tax corruption.
Social implications
Fighting tax corruption requires significant changes in the attitudes of taxpayers and tax auditors.
Originality/value
This paper combines the literature on Kantian economics and tax compliance in an innovative fashion.
Details
Keywords
This study aims to explain the Indian taxpayers’ harassment saga in the name of revenue collections by the taxmen.
Abstract
Purpose
This study aims to explain the Indian taxpayers’ harassment saga in the name of revenue collections by the taxmen.
Design/methodology/approach
The study gas adopted descriptive viewpoints supported by empirical evidence.
Findings
Pursuant to the recent amendments in the Act, a good number of Sections such as 132(1), 132(1 A) and 153 A have empowered the tax officials to conduct raids without explaining the reasons, call for papers for reopening assessments of cases of a decade old and has increased the quantum of penalty for the default period substantially.
Originality/value
The paper is an original one and free from plagiarism.
Details
Keywords
Aqmarina Vaharani Paramaduhita and Elia Mustikasari
The purpose of this paper is to determine what factors may affect taxpayer (TP) compliance.
Abstract
Purpose
The purpose of this paper is to determine what factors may affect taxpayer (TP) compliance.
Design/methodology/approach
This research uses five independent variables such as income, TP’s perception on tax penalties, law and enforcement, fair tax treatment and the use of tax money in a transparent and accountable way. The dependent variable is the compliance of individual TPs non-employees. The data used are primary data obtained from questionnaires on KPP Surabaya Rungkut and processed using a multiple linear regression method with SPSS 21.0 Software for Windows.
Findings
The results show that partially income does not affect the compliance of individual TP non-employees; however, four other independent variables on the TP’s perception of penalties, law enforcement, tax treatment and the use of tax money simultaneously had a positive effect.
Originality/value
All independent variables had a positive effect on compliance by individual TP non-employees on KPP Surabaya Rungkut.
Details
Keywords
Zaleha Othman, Mohd Fareez Fahmy Nordin and Muhammad Sadiq
This study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.
Abstract
Purpose
This study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.
Design/methodology/approach
This study applies a qualitative research method, i.e. case study, to address the specific research objective.
Findings
The finding revealed a GST prevention model towards sustainable business. The finding shows that it is pertinent for the government to set preventive strategies in order to retain sustainable income for the government. Two essential dimensions emerged in the findings to support preventive strategies, namely macro- and micro-level measures.
Practical implications
The findings of this study provide managers, investors and policymakers with evidence to what extent GST fraud could be minimize in order to safeguard government source of revenue and retain sustainable business in a country. As GST is an important source of revenue for the government, it is thus crucial to prevent fraud from occurring.
Originality/value
Past studies have primarily focused on GST implementation from the perspective of service tax effectiveness and efficiency. However, this study examined the impact of GST fraud to determine measures that could ensure service tax sustainability using preventive strategies, in turn, introducing to the existing literature on indirect tax.
Details
Keywords
Sabina Kołodziej, Ewa Wanda Maruszewska and Małgorzata Niesiobędzka
This paper aims to present a study on the effect of income and expense shifting on the corporate income tax evasion – an example of intentional noncompliance practiced by tax…
Abstract
Purpose
This paper aims to present a study on the effect of income and expense shifting on the corporate income tax evasion – an example of intentional noncompliance practiced by tax agents. The authors expected that the tool used would differentiate the extent of understatement of tax liability.
Design/methodology/approach
Two experiments were conducted in which young (N = 62) and experienced (N = 68) tax agents read a scenario placing them in a position of an employee responsible for tax planning and calculations of tax liabilities. The respondents’ task was to decide about the extent of the tax liability understatement using income or expense shifting.
Findings
Research demonstrated significantly higher extent of corporate income tax understatement when using income shifting compared to expense shifting in case of experienced tax agents (Study 2) and on tendency level among young tax agents (Study 1).
Research limitations/implications
Results of the studies might be of interest to managers paying attention to tax procedures within the company, governmental agencies investigating corporate tax evasion, as well as educators responsible for tax agents’ initial training and lifelong learning.
Originality/value
This study concentrates on tax agents who are employed in companies and corporate income tax evasion, which has not been analyzed in the literature so far.
Details
Keywords
Richmond Kumi and Richard Kwasi Bannor
The paper aims to examine agrochemical traders’ tax morale in three Ghanaian regions.
Abstract
Purpose
The paper aims to examine agrochemical traders’ tax morale in three Ghanaian regions.
Design/methodology/approach
Primary data were collected from 92 respondents using structured questionnaires. A multistage sampling technique was employed and used in selecting respondents.. Descriptive statistics, factor analysis and quantile regression analysis were used to analyse data obtained via the questionnaires.
Findings
The study found tax reporting knowledge, tax calculating knowledge and tax payment knowledge to be the keen factors influencing agrochemical traders’ tax knowledge. It was also revealed that age, religion and marriage positively influence the tax morale of traders. Inversely, gender, high level of education and monthly sales were found to affect tax morale negatively. Moreover, trust (respect, trustworthiness and expertise knowledge) negatively influenced tax morale. Authorities’ tax knowledge and power (sanction and lockdown) were revealed to impact tax morale positively. However, tax morale decreases amongst agrochemical traders with higher tax morale when sanction increases.
Originality/value
Unlike previous studies which focussed on tax morale amongst individuals and firms outside the agribusiness sector, this study examined the tax morale within the informal agrochemical trading sector, which has recently attracted colossal patronage due to the high usage of agrochemicals amongst farmers in Africa and Ghana. This study also assumed tax morale to be at different levels; hence the factors that affect the morale at different levels differ. Therefore, the study examined the factors influencing tax morale amongst agrochemical traders by segregating tax morale into quartiles. Relating to theory, the economic deterrence theory was used to ground the study, which is not usually used in most tax morale studies.
Details
Keywords
Vivi Adeyani Tandean and Winnie Winnie
This study aims to obtain an empirical evidence about the effect of good corporate governance on tax avoidance which becomes a proxy of current ETR (Effective Tax Rate). The…
Abstract
This study aims to obtain an empirical evidence about the effect of good corporate governance on tax avoidance which becomes a proxy of current ETR (Effective Tax Rate). The samples of this study were 120 manufacturing companies listed in Indonesian Stock Exchange in 2010 – 2013. The hypothesis testing used multiple regression analysis. The result of this study show that audit committee has a positive effect on tax avoidance in partial but the executive compensation, executive character, company size, institutional ownership, boards of commisioners' proportion, audit committee and audit quality have simultaneous effect to define tax avoidance.