Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers

Kassa, Erstu Tarko

doi:10.1186/s13731-020-00142-4

Cited by 41 publications

(40 citation statements)

References 27 publications

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“…SME owners with greater tax knowledge are better able to manage complex tax systems and avoid the additional costs associated with complex reporting duties, and are thus more likely to comply voluntarily. Kassa (2021) discovered that tax parity, tax knowledge, and moral obligation all had a substantial impact on taxpayers' intent to engage in tax evasion. Alabede (2016) finds that a taxpayer's attitude on tax evasion has an impact on compliance behavior.…”

Section: Resultsmentioning

confidence: 99%

“…According to Tanzania Parliamentary Budget (2020/2021), one of the causes of government budget deficit is non-tax compliance where by estimated tax revenue mismatch with collected tax revenue. Kassa (2021), Ng'eni (2016, Kira (2017) suggested that high tax rates, complicated tax procedures, corruption, high compliance costs and inadequate social services as reasons for noncompliance. Kassa (2021) further argued that tax rates in Africa are so high that they slow down corporate growth.…”

Section: Introductionmentioning

confidence: 99%

“…Kassa (2021), Ng'eni (2016, Kira (2017) suggested that high tax rates, complicated tax procedures, corruption, high compliance costs and inadequate social services as reasons for noncompliance. Kassa (2021) further argued that tax rates in Africa are so high that they slow down corporate growth. According to Augustine (2020) unfairness in taxation, poor systems and corruption are the leading reasons for non-tax compliance, particularly among small and medium businesses.…”

Section: Introductionmentioning

confidence: 99%

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Determinants of Tax Compliance among Small and Medium Enterprises in Tanzania: Insights from Ilala Municipality

Omary¹,

Pastory²

2022

EAJESS

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This study investigated on Determinant of tax compliance among Small and Medium Enterprises in Tanzania specifically Ilala municipality, Particular objectives included evaluating the influence of economic factors and taxpayer personal demographics on tax compliance. The descriptive cross-sectional survey design and quantitative research approach were used in the current study. The study's population consisted of 5324 Small and Medium Enterprises from Ilala Municipality, from where a random sample of 98 respondents was drawn. Structured questionnaires were used to collect data, which was then analyzed using The Multiple Linear Regression, which provided a comprehensive proof that helped to answer the research questions. The study's findings demonstrated a positive and statistically significant association between the study independent variables and the dependent variable. Taxpayer, economic, and institutional factors all influence taxpayers' willingness to engage in tax evasion, according to the regression analysis. Study findings reveal that all taxpayer predictors, including economic and institutional factors, have a significant impact on tax compliance since all have mean of above 3.0. Furthermore, regression analysis supports the findings, since all three factors were found to have a significant impact on tax compliance, with p-values less than the 0.05 cutoff limit. The study concludes Tax morality can help increase voluntary tax compliance on the country through this taxpayer will have a positive perception toward government spending. Maintaining tax fairness, appropriate and moderate levels of penalty, and keeping tax rates as low as possible can all foster taxpayers' voluntary compliance. Fairness in the execution of tax regulations should be enshrined, and tough measures to combat tax revenue corruption should be implemented.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Determinants of Tax Compliance among Small and Medium Enterprises in Tanzania: Insights from Ilala Municipality

Omary¹,

Pastory²

2022

EAJESS

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“…Tax fraud is a problem for society;therefore, all countries and international organizations are dedicating more and more resources to the fight against tax evasion and fraud, which can cause GDP losses in a country (Kassa, 2021).…”

Section: Fraud and Tax Collectionmentioning

confidence: 99%

A proposal of a suspicion of tax fraud indicator based on Google trends to foresee Spanish tax revenues

Monge

Poza

Borgia

2022

International Economics

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This article contributes to the relationship between fiscal fraud and tax collection in the Spanish economy, creating a composite suspicion tax fraud indicator (STFI) based on Google Trends searches to study the dynamics and foresee tax revenues evolution in Spain. Also, we expand knowledge in the field of fraud tax indicators, following the UNODC (2020) and OECD (2016) recommendations. To this purpose, we apply factor analysis to create the composite indicator and next we utilize techniques centred on fractional integration (ARFIMA) and fractional cointegration VAR (FCVAR) to assess the STFI behavior against tax collection and GDP. The outcomes indicate that the d is less than 1 in all the time series analyzed. As we can see, the tax collection and the leading indicator have a similar statistical behavior (d=0.49 and d=0.40, respectively), which implies mean reversion. On the other hand, GDP will behave similarly to the other two time series, with d = 0.05, which implies that the shocks will have a temporary effect on the GDP behavior, and these effects will disappear by themselves in the short term and in less time than the other two time series. FCVAR results indicate a short-lived duration of the shock due to the error correction term and their short-run stationary behaviour. In the end, applying wavelet analysis, we determine that the composite suspicion tax fraud indicator maintains a negative association with tax collection, except in 2017 and 2018, when the high economic growth offsets the fiscal fraud.

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“…The tax motivation is understood precisely as the taxpayer's internal willingness to pay taxes. The literature review indicates that tax motivation depends on number of factors including: impact of religion-regardless of the type of religion-and the level of spirituality (Alkhatib et al, 2019;McGee and Benk, 2019;Carsamer and Abbam, 2020;Yuniarta and Purnamawati, 2020;Khalil and Sidani, 2020;Silveus and Stoddard, 2020;Calhoun, 2021;Ishak and Ali, 2021;Kurt and Kurt, 2021;Rahmawati and Dwijayanto, 2021;Wang and Lu, 2021), feeling fairly treated by the tax system and officials (Gerger et al, 2014;Niesiobędzka, 2009), level of knowledge about the operation of tax systems (Kassa, 2021;Kushwah et al, 2021;Newman and Nokhu, 2018;Timothy and Abbas, 2021), tax conscience (Fotiadis and Chatzoglou, 2021), tax discipline (Alm and Torgler, 2006), financial situation (Bejaković and Bezeredi, 2019), trust in public authorities (Alm and Torgler, 2006;Feld and Torgler, 2007;Filippin et al, 2013;Frey and Torgler, 2007), culture (Olaniyi and Akinola, 2020;Alm and Torgler, 2006;Nerre, 2008;D'Attoma, 2018;Feld and Torgler 2007;Feld et al 2008;Kountouris andRemoundou, 2013, after: Horodnic, 2018), gender (Alm and Torgler, 2006;Torgler and Murphy, 2014;Chan et al, 2018;Cyan et al, 2016;…”

Section: Theoretical Aspects Of Entrepreneurs' Tax Incentivesmentioning

confidence: 99%

Tax motivation of entrepreneurs in five voivodeships in Poland – research results

Florek,

Sapkowski

2021

ZN MWSE w Tarnowie

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Many factors influence the motivation to pay taxes of people who run their own business, inter alia: religion, geographical location or stability of the tax system. Determining and indicating what influences the willingness to pay taxes or lack thereof is an important element of building tax awareness and creating a taxation framework tailored to the recipient, i.e. the taxpayer. The aim of this article is to present the differences between the attitudes towards taxation of entrepreneurs from five different voivodeships in Poland, based on the results of an empirical survey. The survey was conducted on a sample of 250 self-employed persons. The respondents were entrepreneurs from the Podlaskie, Pomorskie, Podkarpackie, Wielkopolskie and Śląskie voivodeships. The results of the survey analysed by means of descriptive statistics indicate that there are differences in the attitude to paying taxes depending on the region of business activity. They can be seen in particular in the way tax documentation is managed and the motivation to pay taxes.

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Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers

Cited by 41 publications

References 27 publications

Determinants of Tax Compliance among Small and Medium Enterprises in Tanzania: Insights from Ilala Municipality

Determinants of Tax Compliance among Small and Medium Enterprises in Tanzania: Insights from Ilala Municipality

A proposal of a suspicion of tax fraud indicator based on Google trends to foresee Spanish tax revenues

Tax motivation of entrepreneurs in five voivodeships in Poland – research results

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