Firm-level determinants of tax evasion in transition economies

Abdixhiku, Lumir; Krasniqi, Besnik A.; Pugh, Geoff; Hashi, Iraj

doi:10.1016/j.ecosys.2016.12.004

Cited by 48 publications

(45 citation statements)

References 30 publications

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“…The Fischer model is thus utilized in this study in the business context level rather than in the individual"s context. According to Abdixhiku, Krasniqi, Pugh, and Hashi (2017), the determinants of tax non-compliance have yet to be extensively examined in the literature dedicated to tax. Abdixhiku, Pugh and Hashi (2018) indicated that the lack of studies on tax non-compliance by businesses is unfortunate, particularly given the fact that in most countries the majority of taxes is paid by business and business account for the size of tax non-compliance too (Nur-tegin, 2008;Crocker & Slemrod, 2005).…”

Section: Introduce the Problemmentioning

confidence: 99%

A Conceptual Model of Sales Tax Compliance among Jordanian SMEs and Its Implications for Future Research

Alshira’h¹,

Abdul-Jabbar²

2019

IJEF

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Tax compliance is a serious and growing issue all over the world. The government of Jordan undertakes various fiscal measures to maximize domestic throughout the past few decades but according to the annual reports, the country still faces a sharp increase in net public debt and fiscal deficit brought about by the increase in the rate of tax non-compliance, and this particularly holds true for sales tax. Therefore, this study generally focuses on the topic of tax non-compliance, specifically sales tax in the Jordanian context. Literature is still lacking of studies that examined determinants of sales tax compliance and several determinants may be the causes behind the non-compliance phenomenon but a general tax compliance model is not effective in explaining the issue. Therefore, for an in-depth understanding of sales tax compliance determinants in Jordanian SMEs, the present research brings forth an extension of Fischer’s model of tax compliance, with the addition of the moderating influence of tax services quality. The proposed model takes social, psychological and economic factors into consideration within one comprehensive model to provide insight into sales tax compliance among SMEs in Jordan.

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Section: Introduce the Problemmentioning

confidence: 99%

A Conceptual Model of Sales Tax Compliance among Jordanian SMEs and Its Implications for Future Research

Alshira’h¹,

Abdul-Jabbar²

2019

IJEF

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“…Individuals do not like paying taxes and they take a verity of action to reduce their tax liability (Ahmed and Kedir, 2015). Despite various administrative reforms, levels of tax collected has remained quite low due to low tax compliance (Abdixhiku, 2013;Baldacchino et. al., 2017).…”

Section: Background Of the Studymentioning

confidence: 99%

Analysis of Tax Compliance and Its Determinants: Evidence from Kaffa, Bench Maji and Sheka Zones Category B Tax Payers, SNNPR, Ethiopia

Assfaw¹,

Sebhat²

2019

jafas

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Despite the fact that tax is an important stream of revenue for government of any country, there is tax avoidance and tax evasion which are constraints serving as a bottlenecks for efficient tax collection performance. Therefore, this study examines tax compliance and its determinants in Kaffa, Bench Maji and Sheka Zones category 'B' business income tax payers, Ethiopia. To do this, data was collected with the aid of structured questionnaires, administered to 311 respondents using proportionate simple random sampling procedure. The data was examined with the use of descriptive statistics and econometric model particularly ordered logit model. The result of ordered logistic regression showed that, among different variables tested, tax compliance was positively affected by education level of tax payers, tax knowledge and awareness of tax payers, simplicity of the tax system, attitude of tax payers towards tax, perceived role of government expenditure, and rewarding scheme for loyal tax payers. It is therefore recommended that the tax authority ought to conduct effective and sustainable awareness creation programmes and tax education to the general public in general and to tax payers in particular through printed and electronic medias and face-to-face cessions. The tax authority should also simplify the tax system particularly the tax return, tax forms and tax laws so that they become easily and clearly understandable to tax payers. Moreover, the government should consider provisions of trophy in terms of tax rewards and inducements to honest and dedicated tax payers. Lastly, the government shall maintain accountability and transparency on how the revenue collected from taxation was being disbursed and provide social services efficiently and effectively to the society so that tax payers will have trust and positive attitude towards the tax that they pay and b the tax system.

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“…Abdixhiku et al [18] found a positive relationship between tax evasion and the tax rate and identified minor effects on the macroeconomic environment (focused on transition economies). Abdixhiku et al [19] also found that smaller firms, individual businesses, and firms in sectors that are less visible to tax administration are more likely to become involved in tax evasion. Jones and Temouri [20] examined the determinants of a multinational enterprise's (MNE) decision to set up tax haven subsidiaries.…”

Section: Literature Review and Theoretical Considerationsmentioning

confidence: 99%

A Study from Slovakia on the Transfer of Slovak Companies to Tax Havens and Their Impact on the Sustainability of the Status of a Business Entity

et al. 2019

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The main aim of this paper is to provide empirical evidence about profit-shifting to selected tax havens by Slovak companies. This contribution focused on the very rare evidence of use of tax havens by Slovak companies not only in the field of corporate income tax, but also in selected areas of profitability. Two sources of data were used. Lists of Slovak companies with tax haven links were provided by the company, Bisnode, and financial statements of investigated companies were gained from the Finstat database. Based on the available data, the investigated period was between 2008 and 2016. We statistically tested selected indicators (ETR, taxes per assets, ROE, ROA, and ROS) of Slovak companies with direct ownership links to tax havens compared to their counterparts. Our findings suggest that Slovak companies with an ownership link to tax havens pay significantly lower taxes compared to companies without ownership links to tax havens during the period monitored. The aggressive tax planning was not only confirmed by the significantly lower reported values of ETR and taxes per assets, but also by the lower values of ROA. On the one side, Slovak companies with ownership links to midshore tax havens had the highest values of ROE, ROA, and ROS, but on the other side, these Slovak companies reported the highest ETR among the appointed categories (onshore, midshore, and offshore). The lowest taxes paid per unit of total assets were found in Slovak companies with ownership links to onshore tax havens. The analysis was supplemented by the changes of the selected indicators before and after obtaining an ownership link to a tax haven.

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Firm-level determinants of tax evasion in transition economies

Cited by 48 publications

References 30 publications

A Conceptual Model of Sales Tax Compliance among Jordanian SMEs and Its Implications for Future Research

A Conceptual Model of Sales Tax Compliance among Jordanian SMEs and Its Implications for Future Research

Analysis of Tax Compliance and Its Determinants: Evidence from Kaffa, Bench Maji and Sheka Zones Category B Tax Payers, SNNPR, Ethiopia

A Study from Slovakia on the Transfer of Slovak Companies to Tax Havens and Their Impact on the Sustainability of the Status of a Business Entity

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