Reengineering Tax Service Quality Using a Second Order Confirmatory Factor Analysis for Self-Employed Taxpayers

Abstract

Abstract-Reengineering tax service quality using second order confirmatory factor analysis, namely, responsiveness, reliability, in formativeness, assurance and usability is viewed as an enabler of tax administration effectiveness in collecting government revenues. This paper examined the psychometric properties of tax service quality items for tax administration effectiveness on the self-employed taxpayers. A total of 181 received and usable data was collected and analyzed. The findings shows the goodness fit indices are adequate with the model fit indices showing the chi-square value of 215.334, DF =146, p-value = 0.000, normed chi-square CMINDF) =1.475, CFI =0.967 and RMSEA = 0.051. In other words, the findings show that the factors help the tax administrator for providing effective tax system. Index Terms-Tax service quality, second-order CFA factor, Bayesian and self-employed taxpayers.

The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam

“…The regression results also show that tax service quality positively influences taxpayers' voluntary tax compliance behavior. This finding confirms that improving the tax service quality will create a premise for taxpayers to comply voluntarily, which has also been confirmed in the studies of Obid and Bojuwon (2014) and Hidayat et al (2014). This study explains that taxpayers who are SMEs have more difficulty understanding tax policy, which can significantly impact their tax compliance behavior.…”

“…The six items of FT were adopted from the prior studies by Inasius (2018), Kim and Lee (2020), and Taing and Chang (2020). Finally, four items of ST were adopted from the previous studies by Gangl et al (2013), Obid andBojuwon (2014), andHidayat et al (2014). In addition, for demographic variables, the gender variable was coded as a dummy variable (Male = 1, Female = 0).…”

“…Tax is a typical type of public service provided by tax authorities. Tax service quality refers to the availability of services and facilities to serve taxpayers (Obid and Bojuwon 2014). The tax service quality includes the quality of tax support services, the inspection and examination team quality, the quality of the tax declaration-payment system, etc.…”

“…Therefore, strengthening tax services and improving organizational structure to support businesses will improve the tax compliance of taxpayers. Many studies have confirmed that the tax service quality has an influence on the tax compliance of taxpayers, in which the tax service quality is measured by criteria such as responsiveness, reliability, reassurance, empathy, and the facilities of the tax authorities (e.g., Obid and Bojuwon 2014;Hidayat et al 2014). The fact that tax authorities create trust and satisfaction for taxpayers through the service environment will make taxpayers feel happy and ready to implement the recommendations of tax authorities and tax regulations of the state.…”

Tax service quality for enterprises: development of a valid measurement scale

“…Over the past 3 decades, much attention has been directed towards various debates with regard to conceptualization and measurement of tax service quality (OECD, 2007; Supadmi, 2009; Alm et al , 2010; Stiglingh, 2014b). A few tax service measurement scales have been developed in different online and offline taxpayers' settings (Floropoulos et al , 2010; Gangl et al , 2013; Mustapha and Obid, 2014; Rusdi et al , 2014). Nevertheless, previous scales have primarily focused on tax service quality for individual taxpayers (Anita et al , 2017; Awaluddin and Tamburaka, 2017; Mustapha and Obid, 2014; Rusdi et al , 2014; Carlos Pinho et al , 2011) and the scale of Jofreh and Rostami (2014) was used for legal entities rather than enterprises.…”