scholarly journals ANALYSIS OF FACTORS AFFECTING TAX COMPLIANCE BY SMES IN KIAMBU COUNTY

2017 ◽  
Vol 1 (1) ◽  
pp. 60-72
Author(s):  
Simon Mbuguah ◽  
Prof. Mwambia Mwambia ◽  
Bernard Baimwera
Keyword(s):  
Tax Evasion ◽  
Survey Design ◽  
Tax Compliance ◽  
Modern Technology ◽  
Compliance Cost ◽  
Factors Affecting ◽  
Knowledge Requirements ◽  
The Government ◽  
Tax Holidays ◽  
Tax Payers

Purpose: The purpose of this study was to determine factors affecting tax compliance by Smesin Kiambu CountyMethodology: The study adopted descriptive survey design and the research. The study population was 1084Smes in Kiambu County where a sample size of 325Smes was selected. Data was collected through structured and unstructured Questionnaires. Data was analyzed using Statistical Package for Social Sciences (SPSS) and results presented in frequency tables to show how the responses for the various questions posed to the respondents.Results: The study findings revealed that Non compliance opportunities, compliance cost, knowledge requirements and decision frames had a positive and significant effect on tax compliance. The study led to conclusion that the authorities had a weak capacity in detecting tax evasion, it was cheaper to bribe a tax official than pay full amount of tax, corrupt, fine and penalties deterred tax evasion and that degree of regulation deterred tax evasion, that tax system and rates affected the rate and amounts of tax evasion, nature and degree of regulations affected tax evasion, size and how the business was structured had a direct or indirect effect on tax evasion, location and focus of business affected tax evasion and that the type of business the tax payers were in affected tax evasion.Policy recommendation: The study recommended that the authorities should adopt high and modern technology to help in detecting tax evasion, proper measures should be emphasized on officials taking bribes, fines and penalties should be issued to those evading paying tax and that proper regulatory framework should be put in place to deter tax evasion and that the government should consider increasing tax incentives such as exemptions and tax holidays as these will not only encourage voluntary compliance but also attract investors who are potential viable tax payers in the future. 

scholarly journals FACTORS THAT AFFECT TAX COMPLIANCE AMONG SMALL AND MEDIUM ENTERPRISES (SMES) IN LUSAKA, ZAMBIA

2020 ◽  
Vol 3 (1) ◽  
pp. 1-14
Author(s):  
Mazwi Thabani ◽  
Dr. Eng Kasongo Mwale Richard
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Lower Percentage ◽  
Tax Rates ◽  
The Government ◽  
Tax Holidays ◽  
The One ◽  
Microsoft Office ◽  
Medium Enterprises ◽  
Tax Payers

Purpose: Tax is an important stream of revenue for government’s development projects. However, tax compliance among SMEs is poor. Therefore, this study was conducted using SMEs in Lusaka, Zambia to evaluate and rank the factors that encourage non-compliance with tax obligation by SMEs.Methodology: The data analysis was done with the help of the statistical package for service solution (SPSS) and this hypothesis was tested with Microsoft Office Excel 2007 using the one sample z-test computed from the figures obtained in the summary statistics table.Findings: It was found that high tax rates and complex filing procedures are the most crucial factors causing non-compliance of SMEs. Other factors like multiple taxation and lack of proper enlightenment affect tax compliance among the SMEs interviewed only to a lesser extent.Unique contribution to theory, practice and policy: It is recommended that SMEs should be levied lower percentage of taxes to allow enough funds for business development and better chances of survival in a competitive market. The government should also consider increasing tax incentives such as exemptions and tax holidays as these will not only encourage voluntary compliance but also attract investors who are potential viable tax payers in the future.

scholarly journals Determnants of Revenue Collection Efficiency and Administration: The Case of Local Government Authorties in Wolaita fZone, Ethiopia

2019 ◽  
Vol 8 (6) ◽  
pp. 5249-5253
Keyword(s):  
Local Government ◽  
Tax Evasion ◽  
Collection Efficiency ◽  
Economic Life ◽  
Factors Affecting ◽  
Revenue Collection ◽  
Tax Education ◽  
Ethiopian Government ◽  
The Government ◽  
Tax Payers

Tax is a pervasive element of economic life around the world. The principal objective of tax is to finance government activity. A relative objective is to accomplish certain social goals. Government use tax as a device to extract money or other valuable things from people and organizations by use of law. The Ethiopian government is no exception. The government of Ethiopia uses the revenues derived from taxation in order to maintain the federal and regional governments’ budgets. The purpose of this study was to identify the factors affecting revenue collection efficiency and administration, the case of local government authorities in Wolaita zone, Ethiopia. The study used descrptive research design to collect and analyze the data. The data collected through structured questionnaires from 110 randomly selected respondents from local government authorities in the study area and the data was analyzed by using multiple regressions. The study concluded that the factors concerned with weak revenue collection efficiency and administration in local government authorities were, low revenue collection efficiency level, weak administration system, the effect of tax evasion and weak enforcement mechanism. Therefore, the study recommended for the local government authorities to improve the revenue collection and administration efficiency by ensuring all eligible tax payers file returns, have tax education programs, register and upgrade individual business, audit, and receivable administer them fairly and manage the associated risk, Enforcement existing law and in this Local government authorities must produce an enforcement procedure and practice manual.

scholarly journals Hubungan antara Religiusitas dan Machiavellian dengan Tax Evasion: Riset Berdasarkan Perspektif Gender

Telaah Bisnis ◽  
2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Dekeng Setyo Budiarto ◽  
. Yennisa ◽  
Fitri Nurmalisa
Keyword(s):  
Significant Influence ◽  
Tax Evasion ◽  
Tax Compliance ◽  
Private University ◽  
The World ◽  
The Government ◽  
Special Region

Abstract Tax compliance has long been an issue for governments throughout the world and there is a large and rich research literatur in this field. This study examines the influence religiosity,and machiavellian on the tax evasion based from gender. The sample of this study are 202 account­ing students from 8 private university of Special Region of Yogyakarta. The results of the study prove that religiosity has significant influence on tax evasion, while machiavellian has no sig­nificant influence on tax evasion. Moreover, there is significant different on tax evasion based from gender. The results are expected for the government to designing policies to prevent tax evasion.

Effect of Government Regulations on the Level of Efficiency in Strategic Planning of Oil Marketers in Kenya

2017 ◽  
Vol 3 (04) ◽  
Author(s):  
Gulali Donald Indiya
Keyword(s):  
Strategic Planning ◽  
Tax Evasion ◽  
Survey Design ◽  
Stakeholder Involvement ◽  
Secondary Data ◽  
Primary Data ◽  
Government Regulations ◽  
Business World ◽  
Safety Standards ◽  
The Government

In the current business world, it is imperative that an organization runs its operations efficiently and in response to the needs of its stakeholders. In Kenya the oil sector has over 30 oil importing and marketing companies which contribute immensely higher GDP for the country and is expected to boost the economy by over 20% in 2030. Previous studies done has shown proliferation of counterfeit oil products in the market, tax evasion and tampering with product quality. The Government has countered all these through regulations, however little is known on the effect of these regulations so as to bring a win-win situation for all stakeholders. The purpose of the study was to investigate the effect of government regulations on the level of efficiency in strategic planning of oil marketers in Kenya. Specifically the study based on; determining the effect of licensing regulations, investigate the effect of safety standards, examine the effect of quality standards and establish the effect of price regulations, all on the level of efficiency in strategic planning of oil marketers in Kenya. The study employed Resource dependency Theory, Strategy implementation Theory and Stakeholder involvement theory. The study adopted quantitative survey design on 219 managers. The study adopted a stratified random sampling on a sample size of 66. Primary data was then collected using questionnaires from which 58 questionnaires were valid for the study making a response rate of 87.8%. secondary data was obtained from records, ppublications and audited financial reports.

scholarly journals Effect of Economic Factors on Tax Compliance in Kenya: A Survey of Limited Liability Companies within Eldoret Municipality

2015 ◽  
Vol 1 (2) ◽  
pp. 19-24
Author(s):  
Kosgei David KIpkoech ◽  
Tenai Joel
Keyword(s):  
Survey Design ◽  
Tax Compliance ◽  
Limited Liability ◽  
Tax Incentives ◽  
Policy Formulation ◽  
Economic Factors ◽  
Tax Rates ◽  
Tax Rate ◽  
Factors Affecting ◽  
Positive Effect

The problem of tax compliance is as old as taxes themselves. Characterizing and explaining the observed patterns of tax noncompliance and ultimately finding ways to reduce it are of obvious importance to nations around the world. As a public finance topic, tax compliance spans the notions of equity, efficiency and incidence. Low tax compliance is one of the internal factors affecting the ability of the Kenyan government to raise direct tax revenues and thus meet its recurrent and development expenditure. Therefore, this study assessed the economic factors affecting tax compliance among various limited liability companies within the municipality of Eldoret. The general objective of the study was to assess the economic factors affecting tax compliance among various limited Liability Companies within Eldoret Municipality. The study specifically sought to determine the effect of tax rates, tax audits, and level of actual income, fines and penalties on tax compliance. The study adopted survey design. Stratified random sampling was used to select a sample of 320 companies drawn from the target population of 1,470 limited companies. Data was collected using structured questionnaire, coded, keyed and analyzed quantitatively using both descriptive and inferential statistics. The study findings showed that tax audits had the highest positive effect on level of tax compliance followed by tax rate, fines and penalties. Tax incentives and level of actual income had the least positive effect on tax compliance .Based on these findings, the study concludes that reducing tax rate, ensuring Kenya Revenue Authority tax auditors to educate taxpayers; enforcing fines and penalties, provision of tax incentives and considering the level of actual income of the taxpayers will improve tax compliance. The study recommends that Kenya Revenue Authority management can improve the level of tax compliance by ensuring favorable and fair tax rates. Tax audits findings should be made available to the taxpayers, while fines and penalties need to be enforced effectively. The authority should also improve tax incentives and consider level of income of the taxpayers in its policy formulation. All these can be achieved through an elaborate taxpayer’s education.

scholarly journals Perspektif Mahasiswa STIE Perbanas Surabaya atas Tax Evasion

InFestasi ◽  
2018 ◽  
Vol 13 (2) ◽  
pp. 344
Author(s):  
Supriyati
Keyword(s):  
Tax Evasion ◽  
Quantitative Research ◽  
Tax Compliance ◽  
Tax Planning ◽  
Administration System ◽  
State Revenue ◽  
Regression Test ◽  
The Government ◽  
Tax Payments ◽  
Ethics Courses

<p>State revenue comes from taxes currently occupies the largest portion of Revenue and Expenditure Budget (APBN). Various reforms have been undertaken by the Government in improving state revenue target. On the other hand, the taxpayer also thinks to minimize tax payments with the tax evasion. Tax evasion has been perceived as unethical because it violates the provisions of the existing taxation. This perception is influenced by factors justice, tax administration system, discrimination and Machiavellian. This is a quantitative research with the data collected from distributing questionnaires directly to the students of Bachelor of Accounting Perbanas Surabaya who are taking courses Tax Planning odd semester of 2015-2016. There were 183 respondents. Testing in this research using regression test. The results showed that the only the variable Machiavellian affects the perception of the ethics on tax evasion. Students perceived that tax evasion is an unethical act. This condition also supported their perception because they have not had experience in fulfillment of tax compliance, tax provisions normative or something that should be adhered to and support ethics courses and softskill development is done.</p><p> </p><p>Pendapatan negara yang berasal dari pajak saat ini memiliki porsi terbesar dalam APBN. Berbagai reformasi perpajakan telah dilakukan oleh pemerintah dalam meningkatkan target pendapatan. Di sisi lain, wajib pajak juga berpikir untuk meminimalkan pembayaran pajaknya melalui penggelapan pajak. Penggelapan pajak dipersepsikan sebagai hal yang tidak etis karena dinilai menciderai peraturan perpajakan yang telah ada. Persepsi tersebut dipengaruhi oleh faktor keadilan, sistem administrasi perpajakan, diskriminasi, dan aliran Machiavellian. Penelitian kuantitatif ini  menggunakan kuesioner yang disampaikan kepada mahasiswa Akuntansi di Perbanas Surabaya yang telah menempuh mata kuliah Perencanaan Pajak pada tahun ajaran 2015/2016. Terdapat 183 responden. Pengujian hipotesis menggunakan analisis regresi. Hasil analisis menunjukkan bahwa hanya variabel Machiavellian yang berpengaruh terhadap persepsi etis dalam penggelapan pajak. Mahasiswa menilai bahwa penggelapan pajak adalah tindakan yang tidak etis. Kondisi tersebut juga didukung oleh persepsi mereka yang belum mengalami kewajiban membayar pajak.</p>

scholarly journals Albanian Individual Taxpayers Perceptions and Determinants on Ethical Behavior Regarding Tax Compliance

2021 ◽  
Vol 5 (1) ◽  
pp. 66-80
Author(s):  
Michael J. Salé ◽  
Oltiana Muharremi ◽  
Meleq Hoxhaj
Keyword(s):  
Informal Economy ◽  
Tax Evasion ◽  
Essential Element ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Analysis Data ◽  
Tax Rates ◽  
Factors Affecting ◽  
Logical Sequence ◽  
In The Beginning

Tax evasion and tax avoidance are among the most addressed topics in economic literature in recent years, as one of the most discussed issues in different countries. The research’s primary purpose is to present Albanian residents’ and taxpayers’ perceptions regarding tax evasion, tax avoidance, and tax compliance. The leading indicators used in this report, the attitude towards tax evasion and tax avoidance, rely on individual taxpayers’ perceptions and not on factual evidence such as the amount of income hidden from the tax authorities. Several studies have been done in different countries regarding the population’s perception regarding factors affecting evasion. In this paper, we investigated the following logical sequence: in the beginning, we provided an overview of the fiscal system and legislation, informal economy, and fiscal evasion in Albania. This analysis data was taken from reports from national and international organizations. After this, we analyzed data obtained from a survey issued to 387 taxpayer individuals in Albania. Our objective was to identify, using empirical analysis, factors that influence an individual’s ethical perception of tax avoidance and evasion. The statistical analyses we carried out in the paper were factor analyses and ordinal logistic linear regression analyses using the JMP statistical software. Based on the empirical research, we concluded that government policies positively correlate with taxpayers’ behavior regarding tax compliance. Among other determinants influencing tax evasion, we have evaluated that higher tax rates are an essential element. The results of the research can be helpful for governments and other policymakers’ institutions.

Introduction

2018 ◽  
Author(s):  
Sven H. Steinmo
Keyword(s):  
United States ◽  
Tax Evasion ◽  
Tax Compliance ◽  
The United States ◽  
Tax Revenue ◽  
State Institutions ◽  
Political Cultures ◽  
History Of ◽  
The Government ◽  
Treat All

Why are some people more willing to pay their taxes than others? In some countries the government is able to collect more than 90% of the taxes it is owed, while in other countries more than 30% of tax revenue goes missing due to tax evasion. This book explores this question by examining the fiscal history of five different democratic nations: Sweden, Britain, Italy, the United States, and Romania. This chapter introduces the book and draws out the central themes introduced in the substantive chapters. Drawing on these rich historical chapters, the introduction shows that successful states have developed strong administrative capacities, treat all taxpayers fairly, and deliver value for the monies they collect. This chapter argues that differences in tax compliance across countries is not explained by different political cultures, but is instead explained by differences in the efficacy of state institutions and the ways they have interacted with their citizens.

scholarly journals Income Tax Compliance Cost of Corporations in India, 2000–01

2006 ◽  
Vol 31 (4) ◽  
pp. 9-30
Author(s):  
Arindam Das-Gupta
Keyword(s):  
Cash Flow ◽  
Tax Evasion ◽  
Income Tax ◽  
Tax Compliance ◽  
Postal Survey ◽  
Legal Compliance ◽  
Compliance Cost ◽  
Convenience Sample ◽  
Compliance Costs ◽  
Corporation Tax

This is the first study of compliance costs of income taxation of corporations in India. Compliance costs are the costs of meeting obligations under the income tax law and in planning to save taxes. Opportunity costs such as when tax refunds are delayed are also included. Social compliance costs, gross versus net private costs, and mandatory versus voluntary cost can be distinguished. Gross private compliance costs include both legal and illegal expenses (such as bribes paid), employee costs, the cost of tax advice, and also other non-labour expenses. Estimates in this paper are for the year 2000-01 based on a postal survey of 45 companies throughout India in August-September 2001. Estimated gross compliance costs, excluding bribe costs, are between 5.6 and 14.5 per cent of corporation tax revenues. These are similar to estimates for other countries near the lower limit but are a cause for concern near the upper limit. Tax deductibility of legal expenses and cash flow benefits from the timing difference between taxable income and payment of tax result in net compliance costs between minus 0.7 and plus 0.6 per cent of corporation tax revenue. Both gross and net compliance costs are regressive. Among other findings, five are noteworthy: First, around 25 per cent of sampled companies knowingly paid excess tax (median value: 46%) since tax evasion penalty cannot be levied under Indian law if assessed taxes have already been paid. Second, 70 per cent of companies, especially small companies, used external assistance to prepare tax returns accounting for 39 per cent of the legal compliance costs. Third, voluntary costs associated with tax planning contribute 19 to 43 per cent of total compliance costs. Fourth, the average sample company had 10 to 11 assessment years locked in disputes for tax or penalty in addition to around two years for which assessments were incomplete. Statistical analysis suggested that one extra disputed assessment year raises legal compliance costs by 5.7 per cent. Fifth, it was found to be fairly common for incorrect application of tax laws by tax officials in areas where they have high discretion to cause tax assessments to be revisited. Among reform suggestions is streamlining of 22 legal and procedural �hot spots� which add to compliance costs. Since the response rate was a disappointing 1.15 per cent, the stratified random sample design degenerated into a convenience sample with over-representation of large firms and under-representation of loss-making and zero-profit companies. Therefore, results should be viewed as preliminary and tentative. Other problems are that there were only qualitative questions about in-house cost components; assumed opportunity cost of funds to value cash flow benefits were used; and, as in earlier studies, there can possibly be a bias due to incorrect apportionment of fixed costs and the value of time of company management

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