tax compliance family
219325551
Determinants of Tax Compliance: A Case of Nekemte Town Category 'C' Business Profit Tax Payers
This study is designed to investigate the determinants of tax compliance in a case of category "C" business profit taxpayers in Nekemte town. To achieve the designed objectives the study employed a quantitative approach. Necessary data for the study were gathered via questionnaire and reviewing necessary documents. To do this the researcher took out 346 samples from the total 2580 population size of category "c" taxpayers and analyzed the returned 240 questions. The sample size of the study was determined by using simple random sampling technique. Responses of respondents were presented by using the data presentation tools and analyzed via STATA 10 software application and descriptive analytical methods using tables and charts. The study found that, family size and length of tax payment period has a significant negative influence on tax compliance. On the other hand, tax knowledge and awareness and tax penalty and fines has a significant positive influence over the level of tax compliance. The assessed amount of tax, probability of auditing and attitudes towards equity and fairness are insignificant factors in determining the compliance behavior of taxpayer. Finally the researcher recommended that different job opportunities and incentives should be provided by the authorized body to increase earning of large size family members. ERCA should be follow up taxpayers and control their activities to easily prevent evasion by taxpayers; and sufficient and adequate training, awareness creation and education should be offered to taxpayers to enhance their knowledge regarding to tax. Besides ERCA should take measures and penalties on those taxpayers who are not willing to pay their tax liability within a specified time period for the purpose of generating more revenues.
Dereje Birhanie Jemberie
38720891
Interacting Role of Perceived Service Orientation on Work Family Conflict, Fuel Subsidy Removal and Tax Compliance Behaviour: Evidence from Nigerian SMEs
The paper examined the interacting role of perceived service orientation on the relationship between work family conflict, fuel subsidy removal and tax compliance behaviour in Nigeria. The aim of this paper is to establish whether the interacting role of perceived service orientation will further help in explaining the puzzle of tax compliance in relation to SMEs taxpayers. A total of 281 questionnaires from SMEs in Kaduna and Kano states, North West Nigeria were utilised in this study. Partial Least Squares Structural Equation Modeling (PLS SEM) was used to test the study hypotheses. As predicted, the findings supported the interacting effect of perceived service orientation on the relationship between work family conflict and tax compliance behaviour, while no interacting effect was found between fuel subsidy removal and tax compliance behaviour. The results have practical implications for relevant tax authorities in creating a new paradigm shift that will ensure effective service orientation in the form of tax education and other form of tax services that could go a long way in minimising the tendency of low level of tax compliance.
Augustine Ayuba Natrah Saad Zaimah Zainol Ariffin
54961682
The influence of work family conflict and fuel subsidy removal on tax compliance: A proposed framework for small and medium enterprises
Several factors have been suggested to influence tax compliance behaviour.To date, some of the factors that have been considered include economic and noneconomic.Despite these studies, however, few studies have attempted to consider the influence of work family conflict and fuel subsidy removal on tax compliance behaviour.This paper proposes work family conflict and fuel subsidy removal to influence the compliance behaviour of the SMEs taxpayers.The proposed model will have several critical implications for understanding the factors that may influence the behaviour of the SMEs taxpayers.
Augustine Ayuba Natrah Saad Zaimah Zainal Affrin
213327227
DETERMINANT OF PERSONAL TAX COMPLIANCE IN INDONESIA
Purpose of the study: This article aims to analyze the effect of eight independent variables (happiness, level of welfare, electoral participation, sex, age, marital status, type of residence, and level education) on tax compliance in Indonesia. Methodology: The cross sectional study data came from the 5th wave of the Indonesian Family Life Survey (IFLS 5) produced by Rand Corporation, Ltd, United States, in 2014 2015. The total sample of IFLS 5 reached 16,204 households and 50,418 individuals as household members. IFLS 5 respondents are household heads, spouses of heads household, and household members aged 15 years old or older who can provide information about the characteristics of household members. This article applies logistic regression using STATA 15 to analyze the IFLS 5. Main Findings: The result of logistic regression shows that of the eight independent variables identified as predictors of tax compliance (Y) only five independent variables (p<0.01) significant affect tax compliance (Y) with a contribution as much as 128.1% (electoral participation/X8) 61.1% (welfare/X2) 54% (happiness/X1) 37% (age/X3) 17.9% (education level/X7) Among these five independent variables, only the age (X3) has a negative relationship with tax compliance (Y) while the other independent variables have a positive relationship. This final model can explain tax compliance (Y) of 0.0275 or 3% significantly, X2 (5) 459.46, p<0.01. Applications of this study: This article recommends that the government intervene in various sectors of social development, increase tax literacy, expand access to higher education, and improve the quality of the democratization process to increase tax compliance in Indonesia. Novelty/originality of this study: This article brings new evidence on the relationship between happiness, welfare, electoral participation, age, and education level on personal tax compliance.
Humanities Social Sciences Reviews
Yulianto Yulianto Feni Rosalia Dewi Brima Atika A Alamsyah
203648766
Tax Compliance and Tax Morale An Agent Based Model Approach
A generalization of the standard tax evasion model by Yitzhaki, Allingham and Sandmo is presented in a minimal agent based setup to investigate how tax morale may explain a substantial part of tax compliance even in the extreme case scenario where the audits' subjective probability is perceived to be null by agents. Three assumptions are contemplated inside the model: society is arranged in an Erdos Renyi network allowing for information spreading; the individuals' objective function belongs to the power utility family, and the agents have bounded rationality. The model can be analytically solved in some cases, particularly when the subjective probability is perceived to be either zero or one. Hence, conditions are derived on the tax rate and levels of individual tax morale and risk aversion under which agents will disclose some of their income or be fully compliant even though the audit probability is known to be null or audits are certain, respectively. Our model accounts for massive local interactions where agents, at the aggregate level, attempt to discover the true audit probability. We resort to simulation to analyze tax behavior in the presence of heterogeneous agents and see how compliance depends on individual values of tax morale and risk aversion as well as interactions with the perceived audit probability and structural parameters such as tax or fine rates. In particular, if utility is a power of (after tax and fines) personal income, the optimal fraction of declared income can be numerically characterized in terms of the agents' willingness to pay, namely a tax morale measure corrected for risk aversion. We provide a robustness analysis and examine different values of individual memory span used by agents to estimate the unknown risk of inspection.
Pellizzari Paolo
231251461
Determinants of tax compliance behaviour of SMEs in Nigeria the moderating role of perceived service orientation and perceived corruption
The issue of low compliance among small and medium enterprises (SMEs) has become a serious concern in Nigeria. This is particularly evident when the number of SMEs who did not pay tax rose from 22.2% in year 2014 to 65% in year 2015. In respond to this issue, this study examined the determinants of tax compliance behaviour (TCB) among SMEs in Nigeria. The study examined the effects of work family financial commitment (WFFC) fuel subsidy removal (FSR) and the role of perceived service orientation (PSO) and perceived corruption as potential moderators of the relationship between economic factors, psychological factors and TCB. Partial Least Squares path modeling was employed to test the study hypotheses. Based on a sample of 281 SME's owners/managers, the results provided support for most of the hypothesized relationships of the study. In particular, WFFC, FSR and tax complexity were significantly and negatively related to TCB. The findings suggest that the variables are important in further explaining the puzzle of TCB. The probability of detection, incentives and public governance quality (PGQ) were significantly and positively related to TCB. However, tax rates and tax knowledge were found to be insignificant. Furthermore, the results of the moderating effect indicated that six of the 12 hypotheses were significant. Perceived corruption showed a significant moderating effect on the relationship between tax rates, the probability of detection, incentives, tax knowledge and TCB. In addition, PSO also moderate the relationship between incentives, PGQ and TCB. The results indicate that PSO could assist in reducing the climate of deterrence between the taxpayers and the relevant tax authorities. Thus, relevant tax authorities should integrate these variables into their processes in order to enhance the level of tax compliance. An enhanced level of tax compliance could lead to the overall improvement in the revenue collection of the states and the country at large.
Ayuba Augustine
113398634
Strictness of Tax Compliance Norms: A Factorial Survey on the Acceptance of Inheritance Tax Evasion in Germany
Using the example of the inheritance tax, this paper examines whether and how the strictness of tax compliance norms depends on the interrelation between tax objectives, tax design, and taxed behavior. Building on the literature on tax evasion, optimal inheritance taxation, family economics, and social norms, the paper hypothesizes that a larger non declared amount of transfer decreases the acceptability of tax evasion and that both an asset with emotional value and a higher degree of kinship increase the acceptance of evasion. Utilizing a survey with an experimental design on the acceptance of inheritance tax evasion that was conducted in Germany in 2012, the paper confirms these hypotheses empirically. The results indicate that violating a compliance norm is justifiable if the tax objectives are not infringed upon by the evasion or if the tax design is not considered useful to accomplish the aim of the tax. In contrast, the norm violation is less acceptable, if the underlying goal is at stake.
Martin Abraham Kerstin Lorek Friedemann Richter Matthias Wrede
55258152
The Impact of Corruption on Firm Tax Compliance in Transition Economies: Whom Do You Trust?
Tax compliance is an important issue for governments and the public alike. To meet public needs and fund public mandates, firms around the world are expected to comply with tax laws. Factors that are related to organizational (firm) tax compliance have not been sufficiently examined in the literature. Owing to the increasing global influence of transition economies, factors associated with firm tax compliance in transition economies are particularly of interest. Based on a sample of over 5,000 firms from 22 former Soviet Bloc transition economies, we find that higher levels of corruption and higher levels of particularized trust (reliance on friends and family) are associated with lower levels of tax compliance. Interestingly, we also find that the negative relationship between corruption and tax compliance is weakened in situations of higher generalized trust (trust in strangers) Overall, our study's results suggest that institutional factors play an important role and are related to firm tax compliance behavior in transition economies.
Anna Alon Amy M Hageman
151304892
Child support compliance and tax return non filing: A feminist analysis
This paper examines the 2011 12 federal budget measure to strengthen child support compliance in light of gendered assessments of child support reform, particularly those that identify an emphasis on men's financial autonomy and the buttressing of men's financial authority beyond the couple relationship. By changing the way non resident (payer) parent income is calculated for those who fail to lodge tax returns, the government aims to save $78.7 million over four years, with savings to be recouped directly from increased child support assessments and decreased Family Tax Benefits to resident (payee) parents. Given that 87 per cent of child support payers are men, this reform unintentionally legitimises men's non compliance with the Australian Tax Office by circumventing the tax system in determining payer income. At the same time, women and children stand to bear indirect financial costs as they face increased reliance on their ex partner for financial support a move that increases men's financial authority over women and children beyond the couple relationship.
Kay Cook
208332479
The long run redistributive power of the net wealth tax
There is growing debate, both social and academic, about the possibility of levying an annual wealth tax. Until a few years ago, such a proposal appeared difficult to both implement and control, but recent technological innovations, which could greatly facilitate the periodic valuation of wealth, combined with improvements in international tax information sharing could make a "modern wealth tax" possible. Nonetheless, a number of challenges regarding its design still need to be addressed. Taking advantage of the Spanish experience the only EU country to levy a wealth tax we simulate the tax's redistributive impact in the long run. This impact could well be substantial if all wealth were to be valued at market prices and compliance were high. Our results show that the family business exemption and the common income and wealth tax ceilings are highly regressive. We develop a tax simulator (SIMPA) that helps assess the effectiveness of alternative reforms with more comprehensive tax bases. JEL Codes: H24, H23, D31
Jose Cabre Alejandro Esteller More