The impact of budget transparency on tax compliance

Abstract

The article analyzes the factors influencing tax evasion: the value of gross domestic product per capita, tax burden, corruption and openness of information on the use of budgetary funds. The correlation model includes the analysis of two groups of indicators. The first group is indicators of the individual level: education, socio-economic status, attitude to religion, gender, etc. The second group is indicators of the global or national level: GDP per capita, tax burden, the level of corruption in the country, the degree of financial transparency of public finances. The results of the study confirmed the hypothesis that law-abiding tax behavior is largely determined by the openness of information about the use of tax revenues by governments. Disclosure of information on the use of budget funds can become a powerful tool for strengthening the understanding of the legitimacy of the state tax policy, as well as act as a preventive measure to overcome existing facts of tax evasion. Increasing the transparency of public finances will make it possible to reproduce a new level of tax culture, to form an internal agreement of citizens with the fiscal policy of the state.

Understanding the Effect of Government Attitudes on Voluntary Tax Compliance in Nigeria

“…The results showed that taxpayers believed that GEF and TAT could influence government attitudes. The outcome confirmed previous research that discovered positive effects between government effectiveness, tax authority transparency and government attitude (Chindengwike & Kira, 2021;Chisadza et al, 2021;Omotoye et al, 2021;Zvereva et al, 2021). The fiscal illusion theory in tax compliance also supported the findings from previous studies (Martinez-Vazquez, Harwood & Larkins, 1992;Nkundabanyanga et al, 2017).…”

“…Research in the past has measured the impact of corporations concerning government attitude; however, this study used individuals. Government effectiveness (Chisadza et al, 2021;Omotoye et al, 2021) and Tax authority transparency (Chindengwike & Kira, 2021;Zvereva et al, 2021) were found in these study, as predicators of voluntary tax compliance. Thus, forming the dependent variable and the independent variable of government attitude.…”

“…Therefore, existing literature regarding tax compliance has recognised government effectiveness as an important factor in determining tax compliance behaviour (Gberegbe, 2017). On the other hand, tax authority transparency, as stated previously, has been described as another significant factor influencing taxpayers' compliance attitude (Chindengwike & Kira, 2021;Zvereva et al, 2021). Tax authority transparency has a huge influence on taxpayer's compliance decisions and the following and abiding of government policies and programs.…”

“…It shows how successful government programs, policies and the rule of law have been implemented to carry citizens along. Previous researchers have suggested some government attitudes that can change its citizen's behaviour: tax authority transparency (Chindengwike & Kira, 2021;Zvereva et al, 2021), government effectiveness (Chisadza et al, 2021;Omotoye et al, 2021), government fairness (Faizal & Palil, 2015;Jurney et al, 2017), government trust (Batrancea et al, 2019;Saruji et al, 2019), government competency (Houston & Lauren, 2013;Popkin & Michael, 1999) public service (Kampen et al, 2006;Steven & Geert, 2003) satisfaction (Christensen & Per, 2005;Welch et al, 2004), voice and accountability (Awotomilusi et al, 2019;Fereidouni et al, 2011) and government corruption (Rosid et al, 2019;Schlenther, 2017). The present study limited its scope by only examining government effectiveness and tax authority transparency to determine the tax compliance behaviour of Nigeria's people.…”

Government Effectiveness dan Kepatuhan: Peran Mediasi Kompleksitas Pajak

“…Indeks demokrasi disajikan dengan skala 0-10, semakin tinggi nilainya mencerminkan semakin baik demokrasi di negara tersebut. Zvereva et al, (2021) menemukan bahwa transparansi anggaran yang merupakan salah satu ciri demokrasi berpengaruh positif terhadap kepatuhan pajak.…”