scholarly journals Tax Compliance of Small Business in Transition Economies: Lessons from Bulgaria

2005 ◽  
Author(s):  
Konstantin V. Pashev
Keyword(s):  
Small Business ◽  
Transition Economies ◽  
Tax Compliance

Mixed Blessing of Being Designated a Small Business: A Four Country Comparison

2007 ◽  
Vol 5 (1) ◽  
pp. 16-34 ◽  
Author(s):  
Sheila Killian ◽  
Stewart S. Karlinsky ◽  
Garry Payne ◽  
Jackie Arendse
Keyword(s):  
Small Business ◽  
Best Practices ◽  
Economies Of Scale ◽  
Tax Compliance ◽  
Tax Incentives ◽  
Economic Benefits ◽  
Business Community ◽  
Playing Field ◽  
Country Comparison ◽  
Mixed Blessing

This article will focus on how four countries' income tax laws define a small business and how the taxing authorities and legislators attempt to prevent small business definitions from being exploited by potentially unintended users or for unintended purposes. We will use the experiences from four diverse countries (Australia, Ireland, South Africa, and the U.S.), which take their roots from the same legal system (England) to see if there are best practices that can be adapted for these and other countries as well. A fundamental question that arises when discussing tax incentives and disincentives for small business is why carve out special provisions for this segment of the business community? The answer, as discussed below, is two fold: one, the economic benefits that small business yields the economy is material and significant; two, economies of scale as to both regulatory (including tax) compliance costs as well as costs of goods and materials warrant incentives to level the playing field with large businesses.

scholarly journals A tax compliance risk profile of guesthouse owners in Soweto, South Africa

2019 ◽  
Vol 11 (1) ◽  
Author(s):  
Marina Bornman ◽  
Pusheletso Ramutumbu
Keyword(s):  
South Africa ◽  
High Risk ◽  
Small Business ◽  
Tax Compliance ◽  
Business Owners ◽  
Risk Profile ◽  
Research Approach ◽  
Small Business Owners ◽  
Guest House ◽  
Compliance Behaviour

Background: A conceptual framework to assess the particular tax situation of small business owners identifies three key aspects that distinguish small business owners’ perceptions of their tax obligation. These aspects are: they are likely to perceive more opportunities not to comply than employed taxpayers; they are likely to lack meaningful taxation knowledge and they are likely to frame the paying of taxes as a loss.Aim: The aim of this article was to sketch a tax compliance risk profile of guest house owners in Soweto to suggest strategies to negate those factors that may negatively influence their compliance behaviour.Setting: Tax compliance is a priority for tax administrations, especially in developing countries such as South Africa where small businesses are a high compliance risk group. Small guest houses’ income is usually variable and/or cash-based and not easily verifiable against third-party data, which creates a high risk of non-compliance.Methods: A mixed methods research approach was followed. Empirical evidence in the form of semi-structured questionnaires administered face-to-face with 23 guest house owners in Soweto was statistically and thematically analysed to compile a profile of the tax compliance risk according to the framework for tax compliance behaviour of small business owners.Results: Factors such as age, gender and tax morale show favourable results for tax compliant behaviour. However, perceptions of fairness, perceived opportunity for non-compliance, knowledge deficits, decision frames, industry, business size and social norms embrace a high risk of non-compliance for this population.Conclusion: Information pointing out the factors that could negatively influence tax compliance behaviour in this population was obtained. Strategies for empowering small business owners to comply voluntarily with their tax obligations are suggested and include, for example, taxpayer education and improved communication efforts from the revenue authority.

scholarly journals Addressing the small business tax compliance burden: Evidence from South Africa

2013 ◽  
Vol 6 (2) ◽  
pp. 263-284
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Tax Compliance ◽  
Compliance Cost ◽  
Record Keeping ◽  
Business Tax ◽  
Cost Studies ◽  
First Time

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.

scholarly journals Addressing the small business tax compliance burden: Evidence from South Africa

2013 ◽  
Vol 6 (1) ◽  
pp. 33-54 ◽  
Author(s):  
Sharon Smulders ◽  
Gelishan Naidoo
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Small Businesses ◽  
Tax Compliance ◽  
Compliance Cost ◽  
Record Keeping ◽  
Business Tax ◽  
Cost Studies ◽  
First Time

Small businesses have the potential to grow the economy, generate jobs and reduce poverty, but they face many constraints including high tax compliance costs and burdens. A comparison of the findings and recommendations made in small business tax compliance cost studies conducted in South Africa with initiatives introduced by the South African Revenue Service (SARS), substantiated by consultations with a SARS and a South African Institute of Chartered Accountants official, reveals that SARS has, in most cases, attempted to address the tax compliance burdens identified in these studies. However, SARS has only partially addressed the complexity of the tax law, the lack of software to assist small businesses with their record-keeping and the compliance burden associated with provisional tax. SARS has failed to address the need for a threshold below which no small business tax return is required to be submitted, the inclusion of tax in the school syllabus, the requirement for first-time offenders to attend courses instead of raising penalties and the need for a reduction in the rates of interest and penalties raised by SARS. These initiatives should be considered by SARS and it is recommended that further research into the success and effectiveness of all the initiatives already introduced by SARS be performed.

Determinants of Business Tax Compliance

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Kanybek D Nur-tegin
Keyword(s):  
Survey Data ◽  
Transition Economies ◽  
Tax Evasion ◽  
Empirical Evaluation ◽  
Tax Compliance ◽  
Probability Of Detection ◽  
Tax Rates ◽  
Firm Level ◽  
Compliance Costs ◽  
Business Tax

Abstract This paper provides empirical evaluation of a number of determinants of tax evasion by firms. The analysis includes both standard determinants, such as tax rates and probability of detection, and non-traditional factors, such as trust in government, compliance costs, and corruption. Firm-level survey data from 4,538 firms in 23 transition economies are analyzed. One of the main findings is that fighting corruption is more important in deterring tax evasion than conventional measures.

scholarly journals Do South African Small Businesses Prefer Conservative Tax Advice To Aggressive Tax Advice?

2012 ◽  
Vol 11 (6) ◽  
pp. 697
Author(s):  
Melissa Lubbe ◽  
Gerhard Nienaber
Keyword(s):  
South Africa ◽  
Small Business ◽  
South African ◽  
Tax Evasion ◽  
Small Businesses ◽  
Tax Compliance ◽  
Rural South ◽  
Tax Practitioners ◽  
Tax Relief ◽  
Compliance Behaviour

Taxpayers relationship with tax practitioners may influence tax compliance behaviour. International research has been inconclusive on whether taxpayers prefer conservative tax approaches or more aggressive approaches. There has been only limited research on taxpayers preferences in South Africa. Several tax relief measures are available to South African small businesses as growing enterprises, but such entities may lack skilled tax staff and they therefore rely on tax practitioners. The first objective of this study is to determine whether such taxpayers prefer conservative or aggressive tax advice from practitioners. The second objective is to determine whether small business taxpayers would continue to use their tax practitioners services if they disagree with a suggested tax approach. Questionnaires were sent to 50 small businesses in a rural South African town. The data showed that most participating small business taxpayers prefer conservative advice but will agree with the tax practitioner, irrespective of the type of tax advice offered. As long as the advice does not involve tax evasion, they prefer to retain a tax practitioners services irrespective of the type of advice and their (dis)agreeing with it.

Small business tax compliance under third-party reporting

2021 ◽  
Vol 203 ◽  
pp. 104514
Author(s):  
Bibek Adhikari ◽  
James Alm ◽  
Timothy F. Harris
Keyword(s):  
Small Business ◽  
Tax Compliance ◽  
Third Party ◽  
Business Tax
Sign in / Sign up

Export Citation Format

Share Document