Affect Tax Compliance Research Articles

The Effect of Peer Influence on Turnover Tax Compliance among Small and Medium Enterprises in Meru County, Kenya

Purpose: Turnover tax was introduced in Kenya in 2007 to enhance revenue collection, improve tax administration and reduce non-compliance and collection costs among the micro, small and medium enterprises. The main objective of the study was to determine the effect of peer influence on turnover tax compliance among small and medium enterprises in Meru County, Kenya. The study was guided by theory of planned behaviour. Methodology: The study adopted an explanatory research design to enable the generalization of the study hypotheses. The target population was 1756 small and medium enterprises in Meru town and a sample size of 325 respondents. The study showed that the response rate for the questionnaire was 72.0%, showing that 234 out of 325 participants correctly filled the and submitted their questionnaires. The study used primary data, collected through questionnaires which was administered through drop and pick later method. Results: The study found that peer influence had a positive and significant effect on turnover tax compliance (β = 0.237, p = 0.000). Conclusion: Based on the findings, the study recommends that the government enhance programs that foster peer influence, as it has been shown to positively affect tax compliance. Future studies could also investigate the effects of KRA m-service on turnover tax compliance

Tax Service Quality, Trust in Government and Tax Compliance among Small and Medium Enterprises in North Rift Economic Bloc

Purpose- The study sought to establish the indirect effect of trust in government on the relationship between the tax service quality and tax compliance among SMEs in North Rift Economic Bloc, Kenya.Design/Methodology- Based on the social contract theory, this study has a positivist philosophy that is informed by an explanatory research design. The target population was 21,232 SMEs; the sample size used in this study consisted of 393 SME owners/managers selected through a stratified sampling technique. Data were collected using a self-administered questionnaire, and Cronbach's alpha with factor analysis was used to establish the instrument's reliability and validity. Descriptive and inferential statistics were employed to test the hypothesis, and hierarchical regression using the Hayes Process macro was performed.Findings-The study revealed that tax service quality (β =.541, p=.000<0.05) and trust in government (β =.375, p=.000<0.05) are significantly positively related to tax compliance. In addition, the tax service quality was found to have a significant effect on trust in government (β =.395, p =.000<0.05). In addition, the results showed that trust in government mediates the relationship between tax service quality and tax compliance (β =.1482, CI=.0981, .2015).Practical Implications- These findings underscore the need for governments to improve the quality tax services, as this may be able to help in gaining public trust which will ultimately increase SMEs compliance with taxes. There is scope for future research to incorporate mixed-method approaches in order to discover yet more factors affecting tax compliance.

Review of Factors Affecting Tax Compliance And Tax Ratio Target Achievement

This article provides a comprehensive review of the factors influencing tax compliance and the achievement of targeted tax ratios, employing literature review and qualitative analysis approaches. The primary objective is to identify and analyze the determinants that affect taxpayers' compliance behavior and how these factors contribute to meeting the desired tax ratio targets set by governments. Tax compliance is crucial for ensuring sufficient public revenue, which supports economic development and public services. Achieving targeted tax ratios is essential for maintaining fiscal stability and promoting equitable economic growth. The study explores various factors, including economic, psychological, and institutional elements, that impact tax compliance. Economic factors such as income levels, tax rates, and perceived fairness of the tax system are examined alongside psychological factors such as taxpayer attitudes, trust in government, and perceived benefits of public spending. Institutional factors, including the efficiency of tax administration and the legal framework, are also considered. By synthesizing findings from existing literature, this article highlights the complex interplay of these factors and suggests strategies for policymakers to enhance tax compliance and achieve targeted tax ratios. The findings underscore the importance of a multifaceted approach that considers both taxpayer behavior and systemic reforms to improve tax systems' effectiveness.

Faktor Kunci Kepatuhan Pajak UMKM E-Commerce di DKI Jakarta : Modernisasi Sistem Pajak, Religiusitas, Love of Money, dan Sanksi Pajak

Purpose: The purpose of this study is to examine how Religiosity, love of money, tax sanctions, and modernization of the tax system affect tax compliance of MSME businesses. Methodology: The sampling method is based on the formula of Roscoe's theory. Using the SmartPLS 4.0 program for PLS-SEM data analysis, the researcher tested the hypothesis at a significance level of 5%. Results: the results of the study, taxpayer compliance in e-commerce is significantly influenced by the modernization of the tax system for MSMEs; taxpayer compliance in is not significantly influenced by religiosity for the same business; and e-commerce is significantly influenced by love of money. In terms of MSME e-commerce tax compliance, tax sanctions do not have a significant effect. Limitations: This study may only cover a small portion of e-commerce MSMEs in DKI Jakarta, so the results may not fully represent the entire population of e-commerce MSMEs in the area if the sample used is not taken randomly or there is a tendency to select certain respondents, then the results of the study can be influenced by sample selection bias. Contribution: This study adds to the existing literature on tax compliance, particularly in the context of MSMEs in the e-commerce sector. It provides new insights into how factors such as tax system modernization, religiosity, love of money, and tax sanctions interact to influence tax compliance. By testing a theoretical model involving various factors influencing tax compliance, this study strengthens or challenges existing theories related to tax compliance behavior, particularly in the context of the digital economy

Moderating Role of Social Value Orientation on the Relationship between Tax Service Quality and Tax Compliance among Small and Medium Enterprises (SMEs) in the North Rift Economic Bloc, Kenya

Tax revenues are crucial for government operations, providing essential economic, social, and political benefits. However, tax noncompliance by individuals and businesses can undermine these benefits by reducing government revenue and compromising the tax system’s fairness and effectiveness. As such, improving taxpayer compliance is a key government priority. This study examines the conditional effect of social value orientation on the relationship between tax service quality and tax compliance among small and medium enterprises (SMEs) in Kenya. Guided by a positivist philosophy and explanatory design, the study sampled 393 SMEs owners/managers from a population of 21,232 through stratified sampling. The data were collected using self-administered questionnaires, with reliability and validity confirmed using Cronbach’s alpha and factor analysis. The analysis employed descriptive and inferential statistics and multiple regression analyses using the Andrew Hayes Process macro. Findings indicated that both tax service quality (β =.541, p<0.01) and social value orientation (β = 0.333, p < 0.01) significantly and positively affect tax compliance. Additionally, social value orientation significantly moderates the relationship between tax service quality and tax compliance (β = 0.5059, p < 0.01, R2 = 0.0774). The study concludes that high-quality tax service and consideration for social values of the taxpayer are crucial for improving the compliance level of SMEs. Governments encourage greater compliance by providing efficient, user-friendly, and transparent services, as well as through the inclusion of social values in policy and program design. Future research should explore other factors influencing compliance through a mixed-method approach.

Facing or Retreating? Evaluating The Impact of Corruption, Financial Access, and Gender on Corporate Tax Compliance

This study investigates how corruption, financial access, and gender affect tax compliance. 52 nations' worth of World Bank Survey data from 2019 to 2023 are used in this analysis. This investigation's results demonstrate that corruption positively impacts tax compliance. The second conclusion is that money availability improves tax compliance. The conclusion is that tax compliance has no benefit from having female senior managers. The keys to increasing tax compliance are avoiding dishonest behavior, paying taxes cooperatively, and allowing businesses to obtain financing. Our study incorporates the gender of firm managers, access to financing, and corruption into a model to forecast how enterprises will comply.

Factors Affecting Tax Compliance Based on the Theory of Planned Behavior: An Investigation of Taxpayers in the City of Tabriz

Factors Affecting Tax Compliance Based on the Theory of Planned Behavior: An Investigation of Taxpayers in the City of Tabriz

The effect of algoritmics government, artificial intelligence, and tax service on tax compliance

Taxes are an essential pillar of country's economic growth and sustainable development. Therefore, this study investigates the effect of algorithmic government, artificial intelligence, and tax services on tax compliance. This research uses a quantitative approach with a survey method. The sample was 393 taxpayers. The research instrument used was a questionnaire designed on a Likert scale with five response options. The questionnaire was distributed via the WhatsApp application and email in Google Form format. Data were analyzed using regression. The results found that algorithmic government, AI, and tax services, partially and simultaneously, affect tax compliance among taxpayers. These findings provide insight into how tax compliance can be improved through algorithmic government, AI, and tax services. Therefore, researchers and practitioners can discuss the findings of this research critically and in depth before adapting and adopting them in their future work without ignoring the limitations of this research.

DAMPAK PENERAPAN SISTEM E-PAJAK DAN KEKUATAN ISOMORFIK TERHADAP KEPATUHAN PAJAK

Tax revenue can be optimized when taxpayers comply with tax regulations. The government is taking various initiatives to make it easier for taxpayers to fulfill their tax obligations, including the use of electronic tax payment systems. The purpose of this study is to analyze the effects of attitude toward electronic taxation, adoption of electronic taxation, and isomorphism intensity on tax compliance. The research sample consists of SME taxpayers in Magelang. Data were collected by questionnaire and analyzed using SEM-PLS. The results indicate that attitude toward electronic taxation has a positive but not significant impact on tax compliance. On the other hand, the introduction of electronic tax payment system and isomorphic intensity affect tax compliance. This study contributes to the literature on electronic tax systems and tax compliance.

The Influence Of Audit Probability, Sanction Severity, And Social Norms On Enforced Tax Compliance With Patriotism As Moderation

This study aims to determine the effect of audit probability, sanction severity, social norms on enforced tax compliance with patriotism as a moderator variable. The object of this research is an individual who carries out independent work in Jakarta and its surrounding areaThis study uses primary data consisting of 200 respondents' answers that have been collected. This subject have choosed because their income is not always deducted from tax by withholding system, making it prone to tax fraud. Data analysis was performed using the Partial Least Square (PLS) model with the Structural Equation Modeling (SEM) method. The test results show that audit probability, sanction severity, social norms, patriotism partially have a significant positive effect on enforced tax compliance, while patriotism manages to moderate the effect of social norms on enforced tax compliance with a negative relationship. This indicates that a sense of patriotism is not the main element that moderates tax compliance. Although patriotism directly affects tax compliance. The Government should have law enforcement policy to taxpayers dan build social norms which encourage taxpayers to obey their tax obligation.

An Empirical Assessment of the Nexus between Agency Cost and Tax Compliance in Listed Firms in Nigeria

Tax compliance in listed firms poses challenges due to the inherent agency problems within the corporate structure that require additional administrative costs, which the company must incur to put the agent in check to achieve organisation targets. This study examined the effect of agency costs on tax compliance in listed firms in Nigeria. A cross-sectional time-series research design was used. The study population was 155 firms listed on the Nigerian Exchange Group (NGX) as of 31st December 2022. The study used 20 firms as a sample size using a purposive sampling technique. Data were obtained from the audited annual financial reports of the firms from 2013 to 2022. Panel data regression (PDR) was used to analyse the collected data. The findings revealed that monitoring costs measured by audit fees, audit specialisation, and ICT investment have an insignificant effect on tax compliance. In addition, the bonding costs measured by board remuneration and employee incentives showed an insignificant effect on tax compliance, while residual loss measured by Employee shareholding does not significantly affect tax compliance. The implication is that the agency cost incurred by the shareholders to reduce agency problems does not significantly affect their tax compliance. However, monitoring costs, bonding costs, and residual loss have negative and insignificant effects on tax compliance. The study concluded that the costs of the agency have no significant effect on tax compliance in listed firms in Nigeria. Firms should explore ways to enhance the effectiveness of monitoring, bonding and residual activities to ensure better alignment with tax compliance objectives.

Rule of Law and Tax Compliance Behaviour in Nigeria: Does Tax Morale Matter?

The purpose of this study was to analyse the moderating influence of tax morale on rule of law and tax compliance behaviour of self employed taxpayers in Bayelsa State, Nigeria. The study anchored on social exchange theory and survey research design was adopted with a population of 30, 450 self employed taxpayers. Stratified sampling technique was used to establish the number of trade and artisans self employed individuals grouped into fifteen (15) groups on the basis of line of business. The study was based on nine hundred (900) respondents on an average of sixty (60) participants from the fifteen (15) respondents groups out of which eight hundred and forty-two (842) were used as new respondents due to the number of questionnaires returned. Questionnaire were used as the primary source of data collection after reliability test using Cronbach Alpha and the responses obtained from the respondents were analysed using univariate, bivariate and multivariate analysis. The multiple regression analysis suggested that rule of law positively and significantly affects tax compliance behaviour of self employed taxpayers in Bayelsa State, Nigeria, and tax morale does positively and significantly affects the association between rule of law and tax compliance behaviour of self employed taxpayers in Bayelsa State, Nigeria. On the basis of the research findings, the study concluded that there is moderating function of tax morale on rule of law on tax compliance behaviour of self employed taxpayers in Bayelsa State, Nigeria. The study recommended amongst others that, the relevant tax authority (Bayelsa State Internal Revenue Service) should play a more vigorous responsibility in socializing tax laws and regulations to increase the awareness of taxpayers about the significance of fulfilling tax obligations, which will later be used for provision of social goods and services for the wellbeing of the citizens. Furthermore, understanding the social psychological (demographic) of a taxpayer as its relate to tax morale would help in addressing the issue of the rule of law and tax compliance behaviour in Nigeria, and this would also assist the government to formulate the better tax policies for effective and efficient revenue generation.

PENGARUH KEADILAN, MORAL, E-FILLING, E-BILLING TERHADAP KEPATUHAN PAJAK MELALUI KEPUASAN WAJIB PAJAK

This research aims to find out how the influence of tax justice, morals, the application of e-filling and e-billing to tax compliance through taxpayer satisfaction in Jakarta. The samples were selected by purposive sampling method and used primary data by distributing questionnaires to 120 taxpayers. This data processing is assisted by the Smart PLS 3.0 program. The results of this study show that tax justice and morale have a positive influence on tax compliance. e-filling and e-billing variables positively affect tax compliance through satisfaction levels but on the other hand the study found that e-filling and e-billing variables did not have a positive influence on taxpayer compliance. The implication of this research is that it is necessary to improve tax services so that taxpayer compliance can also increase.

Faktor-Faktor Yang Mempengaruhi Ketidakpatuhan Masyarakat Dalam Melaporkan SPT Tahunan Wajib Pajak Orang Pribadi (Literature Riview)

The phenomenon of non-compliance in reporting annual tax notice has become a serious concern in the tax system. The study aims to identify and examine several factors that influence public non-compliance in reporting annual tax notice, compliance strategies and personal Annual reporting arrangements. Through the analysis of related literature, the study investigates the psychological, social, economic, and regulatory factors that potentially affect tax compliance. The findings of previous research, analysis of tax regulation, public perception of tax justice, income, educational level, and other factors are the main focus in exploring the aspects that affect non-compliance behaviour. The results show that public awareness in the personal Annual notice letter report remains low even though the ratio has increased. By understanding these factors, the author hopes to provide deeper knowledge to governments and relevant agencies in designing more effective strategies to improve tax compliance. Implications of this research include better policy development as well as more appropriate persuasive efforts to promote awareness and enforcement of tax systems to be efficient.

The Analysis of Factors Affecting Tax Compliance Among MSMEs In Batam City

The Analysis of Factors Affecting Tax Compliance Among MSMEs In Batam City

THE EFFECT OF TAX KNOWLEDGE, TAXATION SYSTEM MODERNIZATIONON MSME TAXPAYER COMPLIANCE IN BANDUNG CITY

One of the main challenges for the government in managing state finances today is the low state revenue from the tax sector. This study aims to develop a conceptual framework of tax knowledge and modernization of the taxation system that can be used to analyze and discuss it as a factor that affects tax compliance. This study uses a purposive sampling technique based on the population of MSMEs in the food and beverage sector in Bandung, Indonesia. The analytical method used is multiple linear regression with SPSS 24. The results show that knowledge of taxation and modernization of the taxation system has a significant effect either, partially or simultaneously. Keywords : Knowledge of taxation, Modernization of the taxation system, taxpayer compliance.

Theoretical foundations of voluntary tax compliance: evidence from a developing country

Tax non-compliance is a persistent problem that is becoming increasingly common worldwide. The main objective of this study is to examine the factors that influence voluntary tax compliance among large taxpayers in Ethiopia based on the theoretical foundation of tax compliance. This study used an ordinary logit regression model, a closed-ended questionnaire with 1550 taxpayers, and quantitative data analysis. The regression analysis shows that tax compliance behavior is positively and significantly influenced by government trust, taxpayers’ tax knowledge, tax system fairness, and rewards. However, compliance costs negatively and significantly affect tax compliance. To improve voluntary tax compliance, the government and tax authorities need to be more open and responsible. They must also increase tax awareness among taxpayers through websites, seminars, and the media. Ultimately, they must reduce compliance costs and deliver tangible and intangible benefits to honest taxpayers.

Religiosity and Tax Compliance in Akwa Ibom State

This study examined the relationship between religiosity and tax compliance in Akwa Ibom State. This was achieved through the following specific objectives: to evaluate the relationship between Islamic religion and tax compliance in Akwa Ibom State; to ascertain how the Christianity religion relates to tax compliance in Akwa Ibom State and to determine how the Traditional religion affect tax compliance in Akwa Ibom State. The study used descriptive survey research design with 92 sample size. Data were collected through the use of questionnaires and furthermore, Cronbach Alpha were adopted to test for internal consistency of the construct. The findings of this study were; Islamic religion positively influences tax compliance in Akwa Ibom State; Christianity religion significantly affects the tax compliance in Akwa Ibom State and Traditional religion significantly positively influences the tax compliance in Akwa Ibom State. From the research findings, the following conclusions were drawn, Islamic religion, Christianity religion and Traditional religion has a significant positive effect on tax compliance in Akwa Ibom State. Based on the findings of the study, the following recommendations are made; the study is recommending taxpayers’ service that would emphasis tax administrators are service providers and facilitators to taxpayers as customers for public goods and services. This measure would go a long way to enhance the fairness of the tax system and the attitudes of self-employed taxpayers. In order to improve taxpayers’ attitude, tax authorities should also continue the taxpayers’ education and enlightenment programmes regularly. Improvement of institutional welfare is also recommended for tax administrative and retributive fairness

Pengaruh Kepercayaan Kepada Pemerintah, Norma Sosial, dan Sanksi Perpajakan terhadap Perilaku Kepatuhan Pajak

This study intends to investigate trust government, social norms, and tax penalties affect tax compliance behavior. Primary data are utilized in this form of research. primary data collected from respondents' responses to questionnaires. 399 individual taxpayers from the city of Padang—both employers and employees—served as the study's sample. The statistical data analysis technique used in this study is multiple regression analysis. The study's conclusions indicate that while trust in the government and tax penalties have a positive effect on tax compliance behavior, societal norms have no bearing on it. The Tax Service Office must take action to establish a favorable environment, according to the research's implication. There is an increase in trust in the government enforced by the tax authorities, and there are more sanctions, for example, when outreach to taxpayers is done to encourage taxpayers to abide by tax regulations that have been decided by the government. Taxes are imposed on taxpayers in order to force them to fulfill the required tax responsibilities.

Income tax compliance behavior of businesses: The case of Vietnam

The socio-economic development of each country requires the contribution of businesses to social goals and the state budget. Improving tax compliance behavior is consistent with improving the ability of businesses to contribute to the budget. The objective of the study is to evaluate factors affecting tax compliance behavior for businesses. The study is conducted on 202 enterprises in Thai Nguyen, a locality located in the key economic region of Vietnam and with a high level of economic development. Through quantitative analysis of the research results, it found that: the system legislation and socio-economic conditions have the strongest influence on businesses' tax compliance behavior. However, the influence of business characteristics and tax authority characteristics on tax compliance behavior is lower.