Tax education and fear-appealing messages: A grease or sand in the wheels of tax compliance?

Trawule, Alhassan Yusif; Gadzo, Samuel Gameli; Kportorgbi, Holy Kwabla; Sam-Quarm, Richmond

doi:10.1080/23311975.2022.2049436

Cited by 11 publications

(13 citation statements)

References 36 publications

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“…In addition, tax education strengthens tax revenue collection performance since it is considered that tax non-compliance has adverse effects on the capacity to generate revenue. Especially in developing nations, tax education, fear-appealing, and the convenience of tax have become crucial in today's tax revenue discourse (Trawule et al, 2022). Therefore, taxpayer education can be a fundamental instrument to increase people's willingness to pay taxes willingly, as well as play a crucial role in mobilizing the tax revenues that are urgently required to assist in accomplishing sustainable development goals of the country.…”

Section: Tax Educationmentioning

confidence: 99%

“…According to recent research results, tax non-compliance has adverse effects on the capacity to generate the required amount of tax, especially in developing nations. The phenomena of tax education limitations, falsified taxpayers’ documents, and the inconvenience of paying taxes have become crucial to increase tax revenue performance ( Trawule et al, 2022 ). Taxpayers’ lack of awareness, motivation, and tax-paying ability led to their anxiety and misunderstandings with revenue offices.…”

Section: Literature Reviewmentioning

confidence: 99%

“…While tax education and the ease of filing taxes operate as grease in the wheels of committed tax compliance, fear-appealing messages act as sand in the wheels of committed tax compliance ( Trawule et al, 2022 ). In Lagos State, Nigeria, a tax education program focused on informing taxpayers about the socioeconomic ramifications of tax evasion options, and the transparent and responsible use of tax revenues had a major impact on taxpayers’ voluntary compliance.…”

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

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Tax evasion, psychological egoism, and revenue collection performance: Evidence from Amhara region, Ethiopia

Rongping

Fentaw²,

Zhang³

2023

Front. Psychol.

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Tax evasion is the illegal withholding or underpayment of taxes, typically accomplished by intentionally providing false or no evidence to tax authorities. Tax evasion has had a severe detrimental influence on the economy of the Amhara National Regional State, Ethiopia. The Amhara Regional State lost tax revenue in recent years due to tax evasion. The objective of this study was to see how tax evasion, taxpayers’ psychological egoism, and other relevant factors affect tax revenue collection performance in the Amhara Region, Ethiopia. Data were collected from 395 VAT-registered taxpayers through a structured questionnaire. The structural equation model and multiple regression analysis method were utilized for empirical test based on the softwares of SPSS and AMOS. This research revealed that tax evasion and psychological egoism negatively affect tax revenue collection performance. Tax education and technology significantly and positively affected tax revenue collection performance. Meanwhile, the relationships between the above factors (tax evasion, tax education, and technology) and the tax revenue collection performance are reliably mediated by taxpayers’ psychological egoism. Those findings can give clues to researchers, tax experts, and policymakers for improving the tax revenue collection performance in Amhara Region. The government can enhance public education to reduce tax evasion and such misbehavior caused by taxpayers’ psychological egoism. Meanwhile, the most up-to-date tax invoicing technologies, like artificial intelligence and machine learning technology should be adopted.

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Section: Tax Educationmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Tax evasion, psychological egoism, and revenue collection performance: Evidence from Amhara region, Ethiopia

Rongping

Fentaw²,

Zhang³

2023

Front. Psychol.

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“…Previous studies related taxpayer perception to tax compliance (Gitaru, 2017;Kwok & Yip, 2018;Mascagni & Santoro, 2018;Mbilla et al, 2020;OECD, 2020;Teega, 2008;Trawule et al, 2022). There are however limited studies in the Ugandan context as regards to the relationship between taxpayer perception and income tax filing compliance among small taxpayers in Mbarara city.…”

Section: Introductionmentioning

confidence: 99%

Taxpayer Perception and Income Tax Filing Compliance among Small Taxpayers in Mbarara City

Kijjambu,

Mwesigye

2024

AJF

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Purpose: This study is about establishing the relationship between taxpayer perception and income tax filing compliance among small taxpayers in Mbarara city. The study is driven by the fact that despite Uganda Revenue Authority’s efforts to improve tax compliance, income tax filing compliance is still low among small taxpayers in Uganda in general and Mbarara city in particular. Materials and Methods: A cross-sectional study design was used to collect data from 33,979 small taxpayers in Mbarara city out of which 31,324 were individual taxpayers while 2,655 were non-individual taxpayers. The sample size included 380 respondents out of which 350 were individual taxpayers while 30 were non-individual taxpayers. Systematic random sampling was used to select respondents from each of the six divisions of Mbarara city. A questionnaire method was employed in data collection where self-administered 5-point Likert type questionnaire with a Content Validity Index (CVI) of .91 and a Cronbach’s alpha (α) of .86 was used in data collection. Data was analyzed using SPSS version 26.0 where correlation coefficients were generated and presented in a table. Findings: Results from the correlation analysis revealed that taxpayer perception was positively and significantly related to income tax filing compliance (r=.715**, p<0.05). The study concludes that efforts aimed at improving taxpayer perceptions play a significant role in improving income tax filing compliance. Implications to Theory, Practice and Policy: The study recommends a need for the government and tax authorities, in this case, Uganda Revenue Authority to put in place strategies and programs aimed at changing individual perceptions, social understanding and personal motivations regarding income tax filing. Some of these strategies include intensifying tax education and outreach services of the mobile tax office ‘Tujenge Bus Services’ to all locations; introducing basic tax education at earlier stages of formal education such that citizens are informed about their future obligations to file income tax returns; translating all information about income tax filing in different local languages and publishing the same in print format for public access at no cost; and recruiting more tax agents within Mbarara city who can assist small taxpayers in income tax filing at a reasonable fee. The assumptions of the Motivational Posturing Theory could also be relevant in assisting the tax authorities to change the personal and societal perceptions about income tax filing and motivate them to willingly comply with their filing obligations. The study has significant implications for policy making as it identifies a need for government and tax authorities to establish policies and offer incentives and motivational postures that prioritize voluntary compliance rather than introducing sanctions to enforce income tax filing compliance.

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Managing taxpayer compliance: Reflections on the drivers of willingness to pay taxes in times of crisis

Khozen,

Setyowati

2023

Cogent Business & Management

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Tax education and fear-appealing messages: A grease or sand in the wheels of tax compliance?

Cited by 11 publications

References 36 publications

Tax evasion, psychological egoism, and revenue collection performance: Evidence from Amhara region, Ethiopia

Tax evasion, psychological egoism, and revenue collection performance: Evidence from Amhara region, Ethiopia

Taxpayer Perception and Income Tax Filing Compliance among Small Taxpayers in Mbarara City

Managing taxpayer compliance: Reflections on the drivers of willingness to pay taxes in times of crisis

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