Taxpayer behavioural factors influencing entrenched tax gaps

2021 ◽  
Author(s):  
◽  
Divakaran Reddy
Keyword(s):  
Meta Analysis ◽  
Tax Compliance ◽  
Public Trust ◽  
Accurate Estimate ◽  
Research Approach ◽  
International Studies ◽  
Tax Revenues ◽  
Study Results ◽  
The Government ◽  
Tax Noncompliance

Tax compliance is the willingness of taxpayers to obey tax rules of a nation, whilst tax noncompliance is the unwilling behaviour of citizens to act under tax regulations. Taxpayer compliance enables the government to collect tax revenues, which is one of the most important sources of government income. Altering the non-compliant behaviour of citizens is an important barometer for increasing tax revenues that contribute to the socio-economic development of a nation. Numerous quondam studies have been conducted strikingly in the past few decades on taxpayer compliance. However, there is a dearth of sufficient research currently on tax noncompliance behaviour. Moreover, the phenomenon of tax noncompliance has limited exploration from the vantage point of meta-analysis of primary research studies conducted, focussing on interrogating, and systematically categorising their results. Resultantly, the purpose of this study was to examine the previously related primary studies to determine those factors that have been judged to have influenced the tax compliance behaviour of citizens. This study has adopted the quantitative research approach and followed the preferred reporting items for systematic review (PRISMA) method and meta-analysis to provide an accurate estimate of the relationship that exists in a population of relevant tax noncompliance behavioural studies. The population comprised of 45 international studies conducted between the period 2015 to 2020 is selected for analysis. The study results indicate that the quality of tax administration systems and public trust in institutional governance are factors that have influenced taxpayer compliance positively. Poor government accountability mechanisms entrenched tax gaps, and developing public trust in government institutions were found to be universal to promote voluntary taxpayer compliance. This study has contributed significantly to the open discussion on tax compliance among researchers, governments, and businesses.

scholarly journals Village Financial Accountability Report Assessment Presentation based on Government Accounting Principles

2021 ◽  
Author(s):  
Yusriadi Yusriadi
Keyword(s):  
Financial Management ◽  
Accounting Standards ◽  
Primary Data ◽  
Research Approach ◽  
Financial Accountability ◽  
Government Accounting ◽  
Study Results ◽  
The Government ◽  
Village Government ◽  
The Village

Village financial management includes all activities, including planning, implementation, administration, and village financial accountability. Village finances are managed based on transparent, accountable, participatory principles and are carried out in an orderly and disciplined budget. The purpose of this study is to evaluate the presentation of the financial statements of the Padang Loang Village government, Chinese District, whether it is following the government accounting standards mandated by the Indonesian government. This study uses a descriptive qualitative research approach, where the Village Financial Accountability Report (LPJ) is the main object of the study. The informants were the Village Head, Village Secretary, Village Treasurer, and all government staffs in Padang Loang Village, Cina District, Bone Regency, South Sulawesi Province. Data sources consisted of primary data and secondary data, namely interviews and field observations, and available documents sourced from the village government office under study. Simultaneously, the research stage is carried out through data collection, data processing, data presentation, and concluding. The study results indicate that the evaluation of the production of financial accountability reports in the village of Padang Loang is quite good and following the accounting standards recommended by the government. Besides, the accountability reporting procedure carried out by the Padang Loang Village government, either the village treasurer to the Village Head or from the Village Head to the District Government (Camat) and Regency Government (Bupati), is considered fair enough, transparent, and accountable.

scholarly journals SLIPPERY SLOPE FRAMEWORK: MOTIVASI PEMBAYARAN PAJAK DAN KEPATUHAN PAJAK

2021 ◽  
Vol 12 (1) ◽  
pp. 92-101
Author(s):  
Firda Ayu Amalia
Keyword(s):  
Empirical Evidence ◽  
Tax Compliance ◽  
Sampling Technique ◽  
Slippery Slope ◽  
Study Results ◽  
Descriptive Approach ◽  
The Government ◽  
Tax Payments ◽  
Quantitative Descriptive ◽  
Positive Effect

The purpose of this study is to provide empirical evidence behind tax compliance based on a slippery slope framework, namely the motivation to pay taxes due to the power (power) of the government or the awareness of the taxpayers themselves. This study uses a quantitative descriptive approach with data collection techniques in the form of questionnaires and interviews. The sample used was the UMKM actors in Batu's city with a purposive sampling technique. The study results provide empirical evidence that tax payment motivation has a positive effect on tax compliance. Furthermore, interviews with several MSME actors who became respondents stated that tax payments were based on the government's power. It can be said that the motivation for tax payments has not been based on the taxpayer's awareness. The research results are expected to provide advice to the government regarding policies or steps that should be taken to increase the trust (trust) of taxpayers on tax payments that have been made. If the trust is built, tax compliance can increase without coercion.

scholarly journals Compliance behaviour from the holistic human nature perspective

2020 ◽  
Vol 11 (5) ◽  
pp. 1145-1158
Author(s):  
Fidiana Fidiana
Keyword(s):  
Human Nature ◽  
Tax Compliance ◽  
The State ◽  
Religious Values ◽  
Research Approach ◽  
Spiritual Values ◽  
Content Type ◽  
Study Results ◽  
Tax Payments ◽  
Compliance Behaviour

Purpose Previous studies on tax compliance have not internally failed to consider why individuals avoid tax payments. The purpose of this paper is to explore the compliance behaviour of Indonesian taxpayers from holistic human nature perspectives including their rational, social and spiritual values. Design/methodology/approach This paper adopts the tabayyun approach, an interpretive conceptualised methodology using Islamic knowledge to explore taxpayers' rational, social and spiritual realities. Findings Tax compliance is influenced by holistic factors: personal economic rational, social consensus and spiritual beliefs. Rational taxpayers distrust tax authority and see tax payments as an economic decision (i.e. costs and benefits) that reduces/increases wealth. So, they tend to avoid or reconfigure payments. Opposite to economic rationally is the societal pressure upon taxpayers to converge to being an acceptable citizen with legitimate businesses. Under this view, no mistrust against tax authority exists. As for the spiritual factor, tax payments are seen as religious duties like zakat that ought to be paid for achieving spiritual alleviation. Research limitations/implications Due to the research approach, this study results may lack generalisation. Future research can expand broader understanding of religious belief in corporation with compliance behaviour. Practical implications In the tax policy context, this study recommends to take into consideration religious levy being included in the tax system. This study also argues substituting tax with zakat. In Indonesia, religious levy takes more essential roles in the spiritual domain rather than economical domain. Social implications It is difficult to expect tax compliance to be an internal compliance because the source of the command is of an external origin. It is considered as a new concept of wealth distribution that comes from an internal attribute. For states that have religious population as Indonesia, religious values become communal bonds that more dominantly form self-identity at both physical and mental levels. Hence, it is very essential for the state to consider the inclusion of religious values or teachings to the regulation, if the state wants such regulation to be adhered significantly by people. The collection instrument whose bonds originated in religious moral/spiritual values can raise the awareness and compliance voluntarily because the command source is internal and autonomous. Originality/value This study fills the gaps in the taxation literature by incorporating a spiritual perspective, instead of rational and social domains.

scholarly journals Penta helix Element Synergy as an Effort to Develop Tourism Villages in Indonesia

2020 ◽  
Vol 8 (1) ◽  
pp. 01-22
Author(s):  
Nurul Chamidah ◽  
Aditya Halim Perdana Kusuma Putra ◽  
Daduk Merdika Mansur ◽  
Budi Guntoro
Keyword(s):  
Conceptual Model ◽  
Critical Review ◽  
Tourism Industry ◽  
Research Approach ◽  
Observation Process ◽  
Study Results ◽  
Planning Implementation ◽  
The Government ◽  
Coordination And Collaboration

Objectively this study can be a critical review for the government or the stakeholders in the tourism industry to synergize with each other to realize the concept of Penta helix to be more productive and produce a conceptual model that can be empirically tested further. The research approach is to choose a qualitative explorative method that starts from the interview, discussion, and observation process involving informants representing each element of Penta helix. The study results indicate that Penta helix elements as stakeholders carry out activities and programs that consist of planning, implementation, and evaluation processes based on their respective capacities. Apart from that, the communication relationships between Penta helix elements have not shown an interactive and complicated relationship. The lack of communication is because of differences in perspective and the lack of coordination and collaboration between Penta helix parts. Exclusively the development of the Penta helix model is explained clearly in the discussion.

scholarly journals Social-Mapping Sebagai Landasan Perencanaan Pemberdayaan Masyarakat Berkelanjutan

2019 ◽  
Vol 2 (1) ◽  
pp. 52
Author(s):  
Sukaris Sukaris
Keyword(s):  
Community Empowerment ◽  
Added Value ◽  
Research Approach ◽  
Development Programs ◽  
Self Sufficiency ◽  
Potential Capacity ◽  
Study Results ◽  
Social Mapping ◽  
The Government

Planning a community empowerment should be placed as a reference of how to implement development programs and empowerment in order to comply with the direction and expectations of society. Planning community development is often called social mapping. Social mapping is mean to see and know the state of society, and then do a need assessment. The purpose of research is to identify problems of socio-economic, socio-economic potential and other opportunities that can be developed, the characteristics of the targeted empowerment. And to identify the type and level of need empowerment programs that enhance self-sufficiency. This research approach uses a qualitative approach case study. Results show focuses on the socio-economic problems of the most visible problems and are at locations surrounding environment companies ranging from the causes and impact. The various socio-economic potentials focuses on the dimensions of the current potential, institutional cooperation and continued development. The characteristics of the targeted community empowerment have noticed about those directly affected, to develop local potential, capacity building, sustainable programs, provide added value and synergy with the government. That the identification program carried out within a specified period in accordance with the strategic plan and business plan and based on performance and public expectations

scholarly journals Indonesian Taxpayers' Compliance: A Meta-Analysis

2018 ◽  
Vol 7 (3) ◽  
pp. 29
Author(s):  
Ardy Ardy ◽  
Ari Budi Kristanto ◽  
Theresia Woro Damayanti
Keyword(s):  
Service Quality ◽  
Empirical Evidence ◽  
Significant Relationship ◽  
Meta Analysis ◽  
Tax Compliance ◽  
Analysis Approach ◽  
Independent Variables ◽  
Tax Audit ◽  
The Government

This research examines the effect of six independent variables: tax socialization, tax knowledge, tax awareness, tax service quality, tax sanction, and tax audit, on the compliance of Indonesian taxpayers through a meta-analysis of previous researches on Indonesian taxpayers' compliance from 2006 to 2016. The purpose of this research is to strengthen the findings of previous research that the variables above affect Indonesian taxpayers’ compliance. This research obtains empirical evidence that all of the variables above do affect Indonesian taxpayers’ compliance. With using meta-analysis approach, it is concluded that tax socialization, tax knowledge, tax awareness, tax service quality, tax sanction, and tax audit have both positive and significant relationship either for individual or institutional tax payer’s compliance. Theoretically, this research enriches the literature and gives a conclusion for previous researches about tax compliance in Indonesia, which results were varied. Practically, this research gives a clearer picture to the government about factors (tax socialization, tax knowledge, tax awareness, tax service quality, tax sanction, and tax audit) that could be improved to increase tax compliance.

QUINTILE RANKING OF SCHOOLS IN SOUTH AFRICA AND LEARNERS’ ACHIEVEMENT IN PROBABILITY

2019 ◽  
Vol 18 (1) ◽  
pp. 106-119
Author(s):  
UGORJI I. OGBONNAYA ◽  
FRANCIS K. AWUAH
Keyword(s):  
South Africa ◽  
Public Schools ◽  
Quantitative Research ◽  
Statistics Education ◽  
Bloom's Taxonomy ◽  
Research Approach ◽  
Learner Achievement ◽  
Bloom’S Taxonomy ◽  
Study Results ◽  
The Government

There is some disparity in the quality of education among the various races and provinces in South Africa. Since the dawn of democracy in 1994, the government has tried to bridge the gap using quintile categorisation of public schools and its concomitant funding. The categorisation is based on the socioeconomic status of the community in which the schools are located. This study investigated the achievement of learners in the first four quintiles from one school district on the topic of probability. The study employed a quantitative research approach and used Bloom’s taxonomy as the conceptual framework. A total of 490 Grade 12 learners from seven schools participated in the study. Results showed that learners in Quintile 4 had significantly higher achievement scores than learners in the lower quintiles at all levels of Bloom’s taxonomy except synthesis. Counter intuitively, Quintile 1 students had higher achievement than those in Quintiles 2 and 3 at all cognitive levels of Bloom’s taxonomy, with the exception of synthesis. The educational implications of the findings are discussed in relation to quintile ranking of schools and learner achievement. First published May 2019 at Statistics Education Research Journal Archives

scholarly journals INFLUENCE OF TAX COMPLIANCE REQUIREMENT ON FORMALIZING SMALL AND MEDIUM ENTERPRISES IN KENYA

2017 ◽  
Vol 2 (6) ◽  
pp. 47
Author(s):  
Damaris W. W. Muhika ◽  
Dr. Agnes W. Njeru ◽  
Dr. Esther Waiganjo
Keyword(s):  
Survey Design ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Central Business District ◽  
Target Population ◽  
Distribution Data ◽  
Microfinance Institutions ◽  
Study Results ◽  
The Government ◽  
Business District

Purpose: The researcher sought to determine the influence of tax compliance requirement in formalizing small and micro enterprises in Kenya.Methodology: The study took the form of a descriptive survey design. The target population was 1200 SME’s operating in Nairobi Central Business District and registered with the Nairobi County government. The sample size was 369 respondents, calculated using Yamane Sampling Formula. The study employed stratified and systematic random sampling to select SME’s from 4 main sectors and also incorporated commercial banks and microfinance institutions in the sampling distribution. Data was collected by use of open and close-ended questionnaires supplemented by an interview schedule and an observation checklist. The researcher used descriptive and inferential statistics such as mean, standard deviation, correlation and multiple regression analysis. Statistical Package for Social Sciences (SPSS) version 21.0 was used to aid in coding, entry and analysis of quantitative data obtained from the closed-ended questions.Results: Study results revealed that the tax compliance requirement is an essential tool in fostering formalization of business operations.Unique contribution to theory, practice and policy: The study recommended that the government should review business formalization structures such as the tax administration system and business registration to accelerate formalization

Analysis of Tax Compliance with Intervening Variable Pmk Number 91 of 2015 in Jakarta Central Tax Service Office

2019 ◽  
Vol 10 (10) ◽  
pp. 981-991
Author(s):  
Sumarno Manrejo ◽  
Keyword(s):  
Positive Impact ◽  
Tax Compliance ◽  
Tax Revenue ◽  
Research Approach ◽  
National Scale ◽  
Regional Office ◽  
Tax Revenues ◽  
Directorate General ◽  
Total State ◽  
State Revenues

This research is motivated by tax revenues in Indonesia that did not reach the target compared to the realization in the last 10 years, this resulted in a relatively small tax ratio of around 12%. These problems illustrate that the level of taxpayer compliance is still low. Minister of Finance Regulation Number 91/03/2015 is expected to increase tax compliance so that state revenues will increases. This research on taxpayer compliance is focused on the implementation of this regulation in the Central Office of the Directorate General of Taxes in Jakarta. The research approach used is descriptive quantitative. The results of the study indicated that the enactment of the regulation in the Central Jakarta Regional Office has contributed to tax revenues of around 2.05% of total state revenues of IDR11,038,854,776,614 and it contributed 0.37% of IDR61,479,497,160,610. In fact the level of taxpayer compliance in Indonesia in 2015 increased by 1.31% from 59.12% to 60.42%, this is a positive impact of the enactment of the regulation, but the target of tax revenue on a national scale has not been fulfilled yet.

scholarly journals Multiple tax amnesties and compliance in South Africa

2014 ◽  
Author(s):  
◽  
Sachin Vir Junpath
Keyword(s):  
South Africa ◽  
Small Business ◽  
Small Businesses ◽  
Quantitative Research ◽  
Structural Changes ◽  
Tax Compliance ◽  
Research Approach ◽  
Tax Amnesty ◽  
The Government ◽  
New Democracy

South Africa has seen tremendous changes since 1994, from the introduction of a new government to structural changes in tax administration; one of the challenges the government faced in the new democracy, was the restructuring of the tax system. Multiple tax amnesty programs were thus introduced between 1995 and 2010 to provide immunity for limited periods to citizens and small businesses for past non-compliance without being subjected to additional tax, interest, penalties or prosecution. Although extensive research conducted abroad has illustrated the potential problems and complexities that could arise from multiple amnesties, very little research has been conducted in South Africa to evaluate the viability of offering repeated amnesties. The emphasis in this study was therefore on the Small Business Tax Amnesty of 2006, and its primary purpose was to explore the effects that multiple tax amnesties have on compliance and whether it is possible for tax compliance to improve if further tax amnesties are introduced. This study used a quantitative research approach to gather data from 146 respondents from an Audit firm database containing information about taxpayers qualifying as small business who applied for amnesty and taxpayers that did not apply for amnesty between 1 August and 30 June 2007. Analysis of the data revealed that tax amnesties in South Africa should not be offered on a frequent basis to non-compliant taxpayers as it causes non-compliant taxpayers to anticipate further amnesties which could impact negatively on tax compliance as a whole. The findings also indicated that educating taxpayers about tax issues could result in better tax compliance thus contributing to the development of a fair and equitable society. Based on the findings, this study makes recommendations to government, the tax authority and policy makers regarding the effects of multiple tax amnesties.

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