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1 – 10 of over 2000
Article
Publication date: 13 July 2023

Saida Dammak and Manel Jmal Ep Derbel

The present work aimed to present the perception of Tunisian professionals towards companies engaged in social responsibility practices and describe the tax evasion strategies of…

Abstract

Purpose

The present work aimed to present the perception of Tunisian professionals towards companies engaged in social responsibility practices and describe the tax evasion strategies of socially responsible Tunisian companies following the coronavirus disease 2019 (COVID-19) pandemic (COVID-19) shock.

Design/methodology/approach

A survey was sent to 119 Tunisian tax administration auditors. Data analysis methods principal component analysis (PCA) and regression analysis were used. The data were collected through a questionnaire after the general containment of Tunisia from September 2020 to February 2021. These quantitative data were analysed using processing software (STATA).

Findings

Professionals of the tax authorities, particularly those in charge of the audit mission, aim for corporate profitability from the perspective of stakeholders that seek to integrate ethics and social responsibility into companies and consider employee morale a top priority. The results show that highly ethical and socially responsible professionals are far from practising aggressive strategies. Thus, an auditor from the tax administration is far from engaging in social responsibility to justify fraudulent acts. During the COVID-19 period, the role of these professionals was to prevent and detect fraud in the tax sector to fight corruption and investigate taxes based on sound regulations.

Research limitations/implications

The results are consistent with optimal taxation theory, which postulates that a tax system should be chosen to maximise a social welfare function subject to a set of constraints. Professionals seek to make taxation much simpler for taxpayers by providing advice and consultation to manage tax obligations. The minimisation of tax or the play of tax values requires expertise in the field to respect legal constraints. Therefore, these professionals play a crucial role in tax collection, as the professionals' advice and suggestions can influence taxpayers' decision-making.

Practical implications

In recent years, academic researchers, policy makers and the public have become increasingly interested in corporate tax evasion behaviour. At the same time, companies are under increasing pressure to integrate CSR into the companies' decision-making processes, which has led to increased academic interest in CSR. Opportunistic tax minimisation reduces state resources and funds needed for government programmes to improve the social welfare of the entire community. This study represents an overriding concern not only for legal and tax authorities and companies, but also for shareholders and stakeholders.

Originality/value

The authors' study contributes to the existing literature by determining the state of play on corporate social responsibility (CSR) practices amongst Tunisian tax authorities' professionals. In Tunisia, an executive of the tax authorities in charge of the verification mission is required to verify the proper application of the accounting and tax legislation in force, follow up on tax control operations on declared taxes and validate the sincerity of the accounts. This study focussed on the tax evasion of companies engaged in social responsibility practices according to the judgements of Tunisian tax authorities' auditors during the global COVID-19 pandemic.

Details

Journal of Applied Accounting Research, vol. 25 no. 2
Type: Research Article
ISSN: 0967-5426

Keywords

Abstract

Details

Responsible Investment Around the World: Finance after the Great Reset
Type: Book
ISBN: 978-1-80382-851-0

Book part
Publication date: 16 June 2023

Michaele L. Morrow, Jacob Suher and Ashley West

This research investigates the effect of imposing a tax on sugar-sweetened beverages (SSBs) on the likelihood of purchasing SSBs. We design and test an experimental framework that…

Abstract

This research investigates the effect of imposing a tax on sugar-sweetened beverages (SSBs) on the likelihood of purchasing SSBs. We design and test an experimental framework that examines this and the effects of providing an explanation about the presence of an SSB tax and information about the negative health effects of consuming SSBs. Consistent with Elbel, Taksler, Mijanovich, Abrams, and Dixon (2013) and Taylor, Kaplan, Villas-Boas, and Jung (2019), we find that imposing a tax, in addition to increasing the conspicuousness of the tax by explaining the presence of a tax (and in some cases, the negative health effects) reduces the likelihood of purchasing an SSB anywhere from 8.39% to 18.15%. We contribute to the public health and tax policy literature by testing consumer choice in a controlled experimental setting and considering the effect of individual differences on the choice to purchase SSBs. Imposing a tax on SSBs may be an effective tool for decreasing SSB consumption that is made more effective when the tax is conspicuous.

Details

Advances in Taxation
Type: Book
ISBN: 978-1-83753-361-9

Keywords

Article
Publication date: 9 April 2024

Mohd Abass Bhat, Shagufta Tariq Khan, Yousuf Mohamed Zahran Al Balushi, Abel Dula Wedajo and Mohammad Haseeb

Based on the extended theory of planned behavior, this study aims to examine potential intentions-related factors that affect Islamic tax compliance moderated by information and…

Abstract

Purpose

Based on the extended theory of planned behavior, this study aims to examine potential intentions-related factors that affect Islamic tax compliance moderated by information and communication technology (ICT) adoption.

Design/methodology/approach

A quantitative cross-sectional design was used to distribute questionnaire sets to 975 working Muslim Omanis by using convenience sampling method. PLS-SEM was mainly used to examine the data.

Findings

All the factors determine behavioral intention to pay Islamic tax (BIIT), which significantly predicts Islamic tax compliance behavior (ITCB). However, perceived control behavior negatively determines intention. ICT adoption moderates the link between BIIT and ITCB.

Practical implications

This study offers both practical and theoretical implications that can guide efforts to promote Islamic tax compliance and advance our understanding of tax behavior within the ETPB framework.

Originality/value

This study accounted for crucial factors determining intention than earlier ones using the ETPB. Considering technological advancements, the study also assessed the moderating role of ICT between BIIT and ITCB.

Details

Journal of Islamic Accounting and Business Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1759-0817

Keywords

Book part
Publication date: 16 June 2023

Mohd Allif Anwar Abu Bakar, Mohd Rizal Palil and Ruhanita Maelah

This study examined social media, tax morale, and tax compliance behaviour. Partial Least Square-Structural Equation Modelling (PLS-SEM) was utilized to investigate the…

Abstract

This study examined social media, tax morale, and tax compliance behaviour. Partial Least Square-Structural Equation Modelling (PLS-SEM) was utilized to investigate the quantitative data gathered from 592 salaried and self-employed taxpayers in East Malaysia, comprising two regions – Sabah and Sarawak. The results showed that social media had no significant effect on tax compliance. There was, however, a significant and negative relationship between social media and tax morale. A significant and positive effect of tax morale on tax compliance was also discovered. The bootstrapping technique indicated that tax morale mediates the association between social media and tax compliance. This research is among the earliest in a developing country to investigate the effect of social media in enhancing tax compliance, thus, contributing to the tax literature with a broader focus.

Open Access
Article
Publication date: 20 January 2023

Alessandro Cascavilla

This paper analyzes the role that the climate change concern (CCCi) has on the willingness to accept an environmental tax. The author aims to grasp how individual general tax…

2595

Abstract

Purpose

This paper analyzes the role that the climate change concern (CCCi) has on the willingness to accept an environmental tax. The author aims to grasp how individual general tax preferences can differ with respect to the specific (environmental) tax. He focuses attention to the Italian case since it has been argued that the potential acceptability of a carbon tax in Italy is relatively high, and this topic has been scarcely explored so far among Italian citizens (Rotaris and Danielis, 2019).

Design/methodology/approach

The author conducted an online survey among 514 Italian economics students.

Findings

The CCCi positively influences the environmental tax morale (ETMi). The general tax morale (TMi) positively affects the specific (environmental) TMi. The CCCi alters individual tax preferences. The author evidenced that also subjects with low TMi turned out to be willing to pay an environmental tax if aware of the environmental issues.

Research limitations/implications

Although the author used a common methodology in this strand of research, he is aware that in an online survey individuals can be influenced by the self-reporting and hypothetical choice bias (see Swamy et al., 2001), that in turn can characterize their reported preferences. Moreover, even if economics university students are commonly used as a subject pool in experimental economics settings, and although several studies showed that the behavioral responses of students are largely the same as those of nonstudents in identical experiments (for a discussion see Alm, 2012; Choo et al., 2016), there is awareness that in this case, they are not taxpayers yet (Barabas and Jerit, 2010).

Practical implications

The author’s results remark the importance of increasing climate change awareness among people to let them be more willing to pay the environmental tax, for instance through investments in sensibilization campaigns on the importance of energy source usage and climate-related topic. Then, an increase in the general TMi leads to an increase in the specific (environmental) TMi. The author’s evidence showed that people with high tax morale logically recognize the positive impact of paying an environmental tax when the CCCi increases, since the more the theme becomes important, the larger the willingness to pay the specific tax. For this reason, policymakers should carry on campaigns to increase the general level of TMi to increase the overall tax compliance level and the relative tax revenues, following the guidelines given by the Organisation for Economic Co-operation and Development (2019) to support taxpayer education programs, such as including TMi research and analysis into education programs, improving the ease of paying taxes or strengthening revenue–expenditure links to build the social contract.

Social implications

It should be paramount to increase awareness about environmental topics among people in general and among those who are relatively tax immoral. The author’s results remark on the importance of targeting energy and environmental tax policies to groups rather than to individuals. According to this evidence, we support the use of nonmonetary tools to nudge people in the environmental transition by changing their behavior in energy use, for instance through the taxation on fuel and other nonrenewable energy resources.

Originality/value

It is the first empirical study that analyzes the impact of CCCi on the environmental TMi in Italy, in particular controlling for the role of the general willingness to pay taxes (TMi). To obtain individual attitudes toward tax payment, most of the empirical studies in behavioral economics employ international surveys. For studies across citizens living in European countries, the European Social Survey (ESS) and European Values Study (EVS) represent the most used ones (see, for instance, Martinez-Vazquez and Torgler (2009) in Spain; Torgler and Werner (2005) in Germany; Nemore and Morone (2019) in Italy). However, these surveys do not allow to study the relationship between the environmental and general TMi across the same subject pool. In fact, despite the ESS (2016) provides individual responses about the willingness to pay an environmental tax, it does not provide information about the general individual attitude toward tax payment (this information is contained only in the ESS wave of 2004, hence referring to a different subject pool). On the contrary, each wave of the EVS (i.e. 2008, 2017) provides information about the general individual attitude toward tax payment, but this survey does not provide a question regarding the willingness to pay an environmental tax. Therefore, to obtain information about the willingness to pay both general and environmental taxes, across the same subject pool, it is needed to carry out a survey.

Details

Journal of Economic Studies, vol. 50 no. 8
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 2 June 2023

Souhir Neifar and Silke Huesing

This paper aims to examine the effect of contractual factors and noncontractual factors on tax avoidance (TA).

Abstract

Purpose

This paper aims to examine the effect of contractual factors and noncontractual factors on tax avoidance (TA).

Design/methodology/approach

The sample comprises 400 firm-year observations of 67 companies listed on the HDAX during the period 2008–2017. The generalized least square panel regression is applied.

Findings

The study results confirm a significant effect of long-term chief executive officer (CEO) compensation incentives and CEO attributes on TA. Findings exhibit a significant impact of foreign CEO on TA, whereas an insider CEO mitigates TA. The results hold for several robustness tests, with lag effective tax rate as dependent variable and with splitting foreign CEO into European and non-European origin.

Research limitations/implications

First, the sample is limited to 400 firm-year observations and to the German context. For shareholders, the study provides first evidence on relationships between the geographical and internal versus external labor market for CEOs and TA. For researchers, the findings underline the importance of integrating behavioral approaches like place attachment theory and the rooting theory in the theory of TA.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine the impact of both contractual determinants and behavioral determinants on TA in the German context as an emerged economy with a dualistic corporate governance. This study contributes to the existing literature regarding the scientific debates about the impact of CEOs and CEO attributes on TA. It also analyses the balance between the place attachment theory and the rooting theory in the face of the compensation outcomes of agency theory.

Details

Journal of Financial Reporting and Accounting, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1985-2517

Keywords

Article
Publication date: 27 February 2023

Mayank Joshipura, Nehal Joshipura and Aditya Sharma

The disposition effect remains one of the most significant investor behavior puzzles. This study aims to consolidate the knowledge, explore current dynamics, elicit trends and…

Abstract

Purpose

The disposition effect remains one of the most significant investor behavior puzzles. This study aims to consolidate the knowledge, explore current dynamics, elicit trends and offer future research directions to demystify the disposition effect.

Design/methodology/approach

This study applies the hybrid review method. It first used bibliometric analysis (212 documents), followed by content analysis (54 articles) to analyze the breadth and depth of literature on the disposition effect.

Findings

This study presents performance analysis and science mapping. It identifies five main research streams: evidence, implications and mitigation techniques; theoretical explanations; investor biases and hedonic framing; attributes, beliefs and preferences; and implications for asset pricing and market efficiency. This study further offers future research directions for disposition effect research.

Research limitations/implications

This study deploys sequential bibliometric and content analysis. A meta-analysis of quantitative articles could provide specific insights regarding the disposition effect. Besides, this study is based on Scopus-indexed journals only.

Practical implications

This study benefits investors and portfolio managers as they learn effective ways to guard against the disposition effect. Policymakers may tweak tax laws to incentivize long-term holding, and regulators can run investor education campaigns to minimize the disposition effect’s consequences effectively.

Originality/value

To the best of the authors’ knowledge, this is probably the first hybrid review of high-quality, contemporary articles on the disposition effect that offers science mapping, research streams, future research directions and a succinct summary of theories, contexts, characteristics and methods deployed in the field of research.

Details

Qualitative Research in Financial Markets, vol. 16 no. 1
Type: Research Article
ISSN: 1755-4179

Keywords

Article
Publication date: 11 July 2023

Ahmad Alshira'h

This study aims to investigate the relationship between trust in government, value added tax (VAT) compliance costs and VAT compliance in the Jordanian retail industry context.

Abstract

Purpose

This study aims to investigate the relationship between trust in government, value added tax (VAT) compliance costs and VAT compliance in the Jordanian retail industry context.

Design/methodology/approach

The study makes use of an online questionnaire survey to collect the required data, and the research model is eventually validated based on 189 responses gathered from the retail industry in Jordan. The obtained data was analyzed using partial least squares-structural equation modeling to examine the effects of trust in government and costs of VAT compliance on VAT compliance.

Findings

The results showed that VAT compliance costs have no significant influence on VAT compliance; while trust in government was found statistically positive significant with VAT compliance.

Practical implications

This study’s results are expected to have implications for VAT authorities and policymakers in Arab countries, like Jordan in their policies formulation to enhance VAT compliance in retail industry. The study’s findings are alerting the policymakers for the positive noneconomic consequences of VAT compliance. It provides evidence that trust in government can increase VAT compliance.

Social implications

The results of the research have a plentiful of social implications. Higher VAT compliance will enable higher levels of government spending on a many of social targets such as health, education, welfare programs and infrastructure.

Originality/value

While the study builds on recent research examining how to incentivize VAT compliance, it simultaneously seeks to make three contributions. First, the study design aims to apply recent advances in behavioral sciences (impact of trust in government and VAT compliance costs) in a policy area that has not seen much use of such interventions in the Jordanian context (i.e. VAT compliance). Second, the study is government procedures pertinent in the sense that it aims to increase the effectiveness of existing government policies by complementing them with behavioral primes. Third, there is nearly no literature found applying this topic in a developing country such as Jordan. To the best of the author’s knowledge, this is the first study that examines the trust in government and VAT compliance costs on VAT compliance among Jordanian retail industry. Thus, this paper contributes to mitigating the literature gap by providing empirical evidence concerning the influence of trust in government and VAT compliance costs on the retail industry VAT compliance in the Jordanian context.

Details

Journal of Money Laundering Control, vol. 27 no. 1
Type: Research Article
ISSN: 1368-5201

Keywords

Article
Publication date: 19 December 2023

Ines Kateb and Khaoula Ftouhi

This paper aims to examine the impact of Zakat avoidance on firm value and investigates how board characteristics moderate this relationship within the context of Saudi Arabia, a…

Abstract

Purpose

This paper aims to examine the impact of Zakat avoidance on firm value and investigates how board characteristics moderate this relationship within the context of Saudi Arabia, a Muslim nation.

Design/methodology/approach

Using panel data from 2009 to 2020, encompassing 78 nonfinancial firms listed on the Saudi Stock Exchange, this study constructs an enhanced measure of Zakat avoidance that integrates insights from tax avoidance research, Shariah principles and the regulations of the Zakat, Tax and Customs Authority. This research uses empirical techniques, including panel data regressions and interaction analysis to investigate how board characteristics may influence this relationship.

Findings

Descriptive analysis reveals pervasive Zakat compliance, underscoring the effectiveness of Saudi Arabia’s robust Zakat system. Regression results indicate a positive association between Zakat payment and firm value. Remarkably, board characteristics exhibit no significant link to Zakat avoidance, emphasizing the potency of the Zakat system and religious adherence. However, the moderation analysis reveals that board independence and meeting frequency positively moderate the relationship between Zakat avoidance and firm value.

Practical implications

The study emphasizes the vital importance of upholding Zakat obligations to cultivate trust among stakeholders and amplify firm value. It advocates for governance frameworks that foster vigilant oversight and independence, ultimately enhancing a firm’s overall worth. Furthermore, the study’s findings provide valuable insights for corporate leaders, investors, policymakers and society as a whole, facilitating the promotion of ethical financial conduct and driving holistic economic development.

Originality/value

This research introduces novel insights by scrutinizing the intricate interplay of Zakat avoidance, board dynamics and firm value within the context of a culturally distinctive emerging economy. The development of a distinct Zakat avoidance metric, along with comprehensive empirical assessment, contributes to the originality of the study. Moreover, the investigation into the moderating influence of board characteristics adds value to the existing body of knowledge.

Details

Journal of Financial Regulation and Compliance, vol. 32 no. 1
Type: Research Article
ISSN: 1358-1988

Keywords

1 – 10 of over 2000