The results suggested that tax knowledge has a significant impact on tax compliance even. The researcher used a descriptive survey design, where mbeya region was chosen because is familiar. The aim of this thesis is to investigate the determinants of business tax evasion for transition economies. Theories on tax compliance there are various opinions as to the best ways to improve tax compliance. By empirically establishing which factors affect tax compliance attitude in the selected countries, the paper derives feasible recommendations for policy makers and. Tax knowledge and tax compliance determinants in selfassessment system in malaysia, ph. Compliance, effectiveness, and behavior change in international environmental law in oxford handbook of international environmental law. Questions about tax compliance are as old as taxes themselves and will remain an area of discovery as long as taxes exist. Income tax noncompliance of small and medium enterprises in. This thesis addresses the problem of low tax compliance in indonesia, focusing on the role of public officials as taxpayers. Every country has got its own system of taxing, which is regulated and managed by the government. The authors identified 18 studies meeting the above criteria. An analysis of factors affecting tax compliance among smes.
Others like, alm 1991 and jackson and milliron 1986 defined tax compliance as the reporting of all incomes and. This study has highlighted the tra tax administration and its effect on the performance tax collections. The study was carried out to assess factors influencing tax compliance in tanzania, a case of tanzania revenue authority located in at mbeya region. Taxpayers attitudes and tax compliance behaviour in kenya. The challenges of tax collection in developing economies with special reference to india by pramod kumar rai b. Tax noncompliance occurs through failure to file tax return, misreporting income or misreporting allowable subtractions from taxable income or tax due kirchler, 2007. Tax audits have been variously discussed in relation to tax compliance.
Data was obtained from 18 empirical studies published between 1985. Determinants and tax compliance costs hijattulah abdul jabbar this thesis is presented for the degree of doctor of philosophy of curtin university of technology august 2009. Some believe that the best way is to increase tax incentives 38 while others believe that the best way is to increase tax penalties. Certainty in tax liability is important for smes that sometimes need to make seat of the pants. Review of modelstheories explaining tax compliance behavior.
Ubira etheses tax knowledge and tax compliance determinants. An analysis of factors affecting tax compliance among. According to kirchler 2007 definition, tax compliance is taxpayers willingness to pay their tax liability as per tax laws and regulations. Given the opportunity, a lot of businesses will not pay taxes unless there is a motivation to do so. Control variables were added in both stage 3 and stage 5 in order to assess whether the inclusion of control variables significantly affects tax compliance behaviour.
Abstract tax compliance issues for small to medium enterprises smes is an area of keen interest to the revenue authority in zimbabwe. When i wrote my master thesis on tax havens i made two plans. An intracultural study in new zealand sue siew eng yong a thesis submitted to auckland university of technology in fulfilment of the requirements for the degree of doctor of philosophy phd 2011 school of business primary supervisor. Hence, the purpose of this research is to bring attitudes and these factors to light in relation to the rental. In general, complying with the tax laws and regulations means reporting of the correct tax bases, timely filing.
This thesis revisits the original framework with a view towards addressing this issue, and examining the political economy implications of tax evasion for progressivity in the tax structure. According to brown and mazur 2003, tax compliance is multifaceted measure and theoretically, it can be defined by considering three distinct types of compliance such as payment compliance, filing compliance, and reporting compliance. Allingham and sandmo, 1972 were of the view that a rise in tax rates will not always lead to a reduction in tax compliance. Tax compliance challenges in fulfiling tax obligtaions among smes in zimbabwe. Interview and questionnaires were used to get information from the respondents. Tax compliance is the process of following the countrys tax system.
Law college, india, 2002 a thesis submitted to the graduate faculty of the university of georgia in partial fulfillment of the requirements for the degree master of law athens, georgia 2004. Recent research on tax administration and compliance. Shadow economy, underground economy, tax compliance, tax evasion. Tax knowledge, penalties and tax compliance in small and. Tax awareness, perception, voluntary tax compliance, snnpr, ethiopia. Tax compliance behaviour of tax agents university of canterbury.
The book focusses primarily on tax compliance in tanzania, but it also examines relevant data from the neighbouring countries of kenya, uganda, rwanda, and zambia, which have undergone tax administration reforms similar to tanzania and are equally concerned with tax compliance, the author does not limit himself to the african continent. In malaysia, studies on perception of fairness were done by. Investigating tax compliance risks of large businesses in. The impact of taxpayer education by a thesis submitted in. All dimension of fairness exist in hong kong and affected tax compliance. Specifically, it indicates a level of compliance that is significantly below what is observed in the data. Bird, tax policy and economic development baltimore. This thesis examines the cultural influences on the tax compliance behaviours of ethnic. Judgments in selfassessment environments a thesis submitted in fulfilment of the requirements. Tax non compliance occurs through failure to file tax return, misreporting income or misreporting allowable subtractions from taxable income or tax due kirchler, 2007.
Tax compliance of small business taxpayers dissertation. James and alley 2012, defined tax compliance as the willingness of the taxpayer to act in accordance with both the spirit and the letter of the tax law and administration without the application of enforcement activity. Tax compliance, selfassessment and tax administration. Darcy 2011, our measure of tax compliance attitude is new in the context of crosscountry studies in africa.
These small and medium enterprises smes have an obligation to pay tax but as a consequence most are not tax. An overview of and outlook for tax noncompliance estimates and. Income tax noncompliance of small and medium enterprises in malaysia. Kirchler, hoelzl and wahl, 2008 predicted that increasing tax rates may encourage compliance behavior. The only changes from the final dissertation apart from layout have to do with the correction referred to here footnote 25 on page 24 of t. Their studies in yemen revealed that smes in yemen comply with the tax. The system is based on the countrys economics and its inner political situation and international politics. The challenges of tax collection in developing economies. Factors affecting tax compliance attitude in africa. In kenya, taxpayers exhibit varying levels of tax compliance.
Tax compliance is likely to become a more significant aspect of tax policy as most of the old problems remain and new considerations are raised by developments such as selfassessment, the emergence of the global economy and electronic commerce. The study examined tax compliance of small and medium enterprises sme in a developing country. Estimating the impacts of tax policy, enforcement, and irs responsiveness publication 1916 rev. New research and its policy implications joel slemrod university of michigan working draft november 1, 2015 abstract.
A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Pdf an analysis of factors affecting tax compliance among. The results suggested that tax knowledge has a significant impact on tax compliance even though the level of tax knowledge varies significantly among respondents. Any use made of information contained in this thesisdissertation must be in accordance. Culture and tax compliance on taxpayer and student samples. Assessing the determinants of income tax compliance in. Another definition of tax compliance is a persons act of filing their tax returns, declaring all taxable income accurately, and disbursing all payable taxes within the. We do so by adapting the individual theory to the case of businesses. Managing and improving tax compliance 6 summary all revenue authorities are generally required to achieve as good a compliance outcome as possible i. Thus a personal norm is the best predictor of tax compliance.
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