Effective Tax Administration Research Articles

Forensic accounting skills and tax evasion detection in Lagos State, Nigeria

The study investigated the application of Forensic Accounting Skills on Tax Evasion Detection in Lagos State, Nigeria. Data were sourced with the aid of structured questionnaire administered on respondents. The sample size was 301 comprising forensic accountants and Lagos State Internal Revenue officials. Multiple regression analysis results show a positive nexus between Forensic Accounting skills and tax evasion detection as the t-calculated (4.579) is greater than the t-tabulated (0.000) at 5% significance level. The forensic accounting skills proxied by Detection, Prevention, Deterrence Skills (DPDS); Forensic Audit, Investigation, Interviewing Skills (FAIIS); Arbitration, Mediation, Litigation Skills (AMLS); Honesty, High Integrity, Communication Skills (HHICS) indicated by the individual level of significance of 0.000, 0.054, 0.054 and 0.122 respectively which are less than 5% acceptable level of significance also shows that there is a significant positive relationship in the effect of forensic accounting on tax evasion detection. The finding indicates the existence of tax evasion and that the application of forensic accounting will drastically lead to the reduction. This will enhance government’s accessibility to more revenue in meeting up with its constitutional responsibilities. The study recommends among others of the need for the government to institutionalize forensic accounting in the country for effective tax administration.

Tax Administration, Tax Incentive and SMEs’ Growth: The Moderating Effect of Firms Size

The study examined the effect of tax administration and tax incentives on the growth of small and medium enterprises in the Kumasi Metropolis of Ghana. Explanatory research design supported by the quantitative research approach was employed. Structured questionnaires were administered for the collection of the primary data from 115 SMEs operating in the metropolis. The multiple regression results revealed that tax administration accounts for a statistically significant positive weak variance in SMEs’ growth, whilst tax incentives account for a statistically significant positive moderate variance in SMEs’ growth. Firm size moderates the predictive relationship between tax administration and SMEs’ growth. Medium enterprises have higher propensity in terms of tax compliance compared to small enterprises. Medium enterprises also have higher growth potential than small enterprises. Ghana Revenue Authority should implement preferential tax policies that support SMEs growth in Ghana with much emphasis on tax incentive packages to small enterprises.

Analysis of the Determinants of Tax Policy Compliance in Nigeria

This paper examines the factors that determines tax policy compliance and the impediments to effective tax administration in Nigeria. The objectives are to: (a) determine if there is a relationship between knowledge of tax laws and compliance in Nigeria; and (b) if there is a positive relationship between corruption and tax compliance. The paper argues that taxpayers’ knowledge of Nigerian tax laws could positively influence citizens attitude and behavior towards compliance. The primary data were derived from interviews, and questionnaires. The conceptual frameworks are based on strategic and benchmark approaches, and principal agent model. The data analysis shows that there is a strong positive relationship between lack of tax knowledge, low level of education and tax compliance in Nigeria. The findings of this study also reveal that there is a strong positive correlation between corruption and tax evasion. The inadequate use of information technology in tax administration, and lack of government incentives as well as poor working condition have negative correlation with tax collection management. There is however significant relationship between inappropriate assessment system, poor economic situation in the country, and lower tax compliance rate in the country. Some benchmark strategic policy recommendations are provided on how to better implement tax compliance laws in Nigeria in the future.

Transparency Regarding the Tax Avoidance in Indonesia: A Philosophical Review

Tax avoidance has become a significant problem that adversely impacts the state's financial system, and its impact can obstruct the state, resulting in distrust of the government. The distrust towards the government, generally due to the reason for tax avoidance. Tax avoidance is fundamentally people's awareness of economic democracy. In Indonesia, the current discussion refers to the Tax Procedure Act, specifically regulates the obligation of the taxpayer, but limiting the rights of taxpayers. It becomes a crucial problem of transparency as part of social rights. Although the activities indicate, democracy practice but other critical challenges affect its implementation. The state, as a people's forum, has an unrealized purpose and has the potential national disintegration. The potential of disintegration forms transparency in the taxation system. Transparency in the tax management can provide accountability between the government and citizens to maintain the effectiveness of tax administration. Using transparency in the taxation system is an excellent solution for a democratic economy. By using doctrinal research, tax transparency has aspects of being balanced to realize the welfare of the country. Balancing the features of the taxation system requires the right transmission to achieve the country's purpose for people's welfare.
 Keywords: Transparency, Tax Avoidance, Tax Law.

Organization Tax Administration in the Function Reduction Tax Evasion

Lately, due to importance and actuality of both practice and theory organization tax administration in the function reduction tax evasion. Modern tax administrations are primarily revenue-raising agencies, exist and work on the principles of mutual compliance, keeping up with the latest taxation trends to maximize value for the overall economy. Tax evasion is a serious problem in the modern world that is present in various forms and proportions everywhere, even in economically strong and organized countries. Tax administration is an important determinant within every economic system and it cannot be operational if it is isolated from other institutions. No tax administration is immune to tax evasion, just different methods of tax evasion. A professional, accountable, accessible, effective, serviceable and efficient tax administration serving the best interests of taxpayers and impact-oriented organizations should be an absolute priority in the work of a single tax authority. The aim of this paper is to analyze the satisfaction of the respondents' attitudes with the phenomena related to tax evasion.

Assessment on Effectiveness of Tax Administration in Ethiopia: The Case Kolfe Keranio Sub City Administration Revenue Office

Tax administration is the identification of tax liability, the assessment of this liability, and the collection, prosecution and penalties imposed on reluctant tax payers. If the tax administration is not effective, it is difficult for the government to collect the required amount of domestic revenue for its activities. Therefore, improving tax administration is quite necessary for developing countries like Ethiopia to improve the domestic tax revenue through voluntary compliance. This study aimed to assesses the effectiveness of tax administration in Kolfe Keranio sub city administration revenue office. The target population of the study included tax payers and employees of the office with 150 tax payers and 75 employees. In order to address the research questions, qualitative and quantitative research approaches were employed. The researcher used both primary and secondary sources of data. In order to get primary information, questionnaire and interview were employed. As important as the primary data, the researcher also collected essential data from secondary sources. Non-probability technique which is convenience sampling was utilized to select sample tax payers and purposive sampling method was used to select sample employees. Data also analyzed on quantitative basis using Pearson’s correlation, multiple linear regression analysis and descriptive statistics Based on the analysis and discussion of the research, it can be concluded that the tax laws, procedures, quality of human, capital and time resources, technological infrastructure, public awareness of tax, and quality of tax report has a significant effect on effectiveness tax administration. It is advisable to provide E filing and E payment system to tax payers that could facilitate filing and paying of taxes by using internet service online. Efforts also have to be made to increase tax revenue by applying continuous follow-up to collect the tax arrears Keywords: Effectiveness, Tax administration, Kolfe Keranio Sub-City DOI: 10.7176/RJFA/11-5-05 Publication date: March 31 st 2020

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Taxation provides the country's national economy with financial resources, but there is a problem of the effectiveness of approaches and optimization of taxation of individuals. The article is devoted to the study of the mechanism for optimizing the taxation of individuals in the national economy of Ukraine with the aim of developing economic measures to enhance the efficiency and optimization of taxation of individuals. Research methods: analysis and synthesis methods were applied in determining the nature of taxation of individuals. In the analysis of the historical development of the taxation process, the historical method is used. To build models for the formation of tax rates, as well as budget revenues, we will offer a two-step PUF data processing algorithm. The scheme of the mechanism for optimizing the taxation of individuals in the national economy of Ukraine is developed. The scheme of the mechanism included the following blocks: environmental assessments, studies of the impact of the tax system on the market distribution of income, the formation of an effective tax system and increasing the progressiveness of taxes, the block facilitating the taxation of personal income and social transfers for economic growth by increasing the efficiency and fairness of labor income tax and capital, the impact of tax policy on the dynamism and productivity of the business, including supporting investment and innovation, and improving the development of the economy and the block increasing tax potential and enhancing the effectiveness of tax administration through international cooperation. Based on the phasing of the dynamics of tax revenues of developed countries of the world, economic measures have been developed to enhance the efficiency and optimization of taxation of individuals in the tax system of the national economy. They consist of strengthening the prognostic part of assessing the effectiveness of taxation of individuals, strengthening the assessment of the effectiveness of administering the tax system and the formation of an effective tax rate.

Effect of Tax Administration on Tax Revenue of States in African Countries: Evidence from Nigeria

Effect of Tax Administration on Tax Revenue of States in African Countries: Evidence from Nigeria

Assessing the Effect of Tax Administration on Smes Tax Compliance Level in Kogi State

Effective tax administration is important for tax revenue generation. It has been observed that the loss of revenue caused by widespread of tax evasion and tax avoidance in Nigeria is due to inefficient and inept tax administration. The most common problem faced by taxpayers is to understand the instructions in the tax pack. This study assesses the burden of tax administration on taxpayers’ compliance level in Kogi State. The population of this study comprises of registered small scale businesses taxpayers in Kogi State, with a sample size of three hundred and seventy eight (378). Questionnaire was used to generate the data while One Sample chi-square test was used to test the null hypotheses. The result shows that administrative tax compliance costs have a significant effect on tax compliance level in Kogi State. The study recommends that the tax authority should make tax administration less complex in the area of tax procedures, tax rules and tax computation to enhance the level of tax payment in the State.

Assessing the Effect of Tax Administration on Smes Tax Compliance Level in Kogi State

Effective tax administration is important for tax revenue generation. It has been observed that the loss of revenue caused by widespread of tax evasion and tax avoidance in Nigeria is due to inefficient and inept tax administration. The most common problem faced by taxpayers is to understand the instructions in the tax pack. This study assesses the burden of tax administration on taxpayers’ compliance level in Kogi State. The population of this study comprises of registered small scale businesses taxpayers in Kogi State, with a sample size of three hundred and seventy eight (378). Questionnaire was used to generate the data while One Sample chi-square test was used to test the null hypotheses. The result shows that administrative tax compliance costs have a significant effect on tax compliance level in Kogi State. The study recommends that the tax authority should make tax administration less complex in the area of tax procedures, tax rules and tax computation to enhance the level of tax payment in the State.

Compliance with income tax administration among micro, small and medium enterprises in Ghana

In a developing country like Ghana, Micro, Small, and Medium Scale Enterprises (MSMEs) play an important role in the socio-economic development of the economy. Payment of income tax by MSMEs remains one of the key sources of government revenue for development activities in Ghana. However, not much is known regarding the compliance of MSMEs with income tax administration in Ghana. Understanding income tax administration compliance and associated challenges among MSMEs could assist relevant policy actors in designing strategies to improve income tax administration in Ghana. Against this background, a mixed-method study involving 210 (200 MSMEs and 10 key informants) sample was conducted to examine the compliance of MSMEs with income tax administration in the Nkwanta South District of Ghana. The study revealed a lack of tax education, high tax rate, low level of income, and high household consumption levels as the dominant and influential factors to tax compliance among the MSMEs. The study further showed that challenges associated with tax administration include low institutional capacity, inadequate resources, negative public attitude towards tax payment, lack of collaboration between the tax agencies, and political interference. Based on these findings, it is important for policymakers and tax collection institutions to strengthen and streamline existing measures to ensure effective income tax administration in Ghana.

The actual aspects of the prevention of the illegal beneficial interest to become and the administrative-legal regulation of the tax system of the Russian Federation

The author creates a model (pyramid) of the causality which occurs under the tax legal regulatory mechanism. There is an analysis of the details of implementation of a risk-based approach by the Russian tax authorities with use of innovative hardware and software system. Having based on the research data the author suggests the way to improve an administrative legal regulatory mechanism which will increase the effectiveness of tax administration and reduce the risk of harm to the public interests. And it is important to comply with a principle of the personification of the responsibility of the individuals. These individuals are real or nominal officials of a company or an individual entrepreneur, and their actions lead to the fact that a taxpayer (the company or individual entrepreneur) had got the unreasonable tax benefit. Invocation of the administrative responsibility to the individuals, as we can suppose, will make it possible to improve the legal regulatory mechanism working within the group of relations which are studied in the research. In addition to this, the study reveals the appropriateness of the change the size of sanctions applying to the officials found responsible for such violations. A sanction should be ranked according to the form of guilty. It appears that a tax legal regulatory mechanism with a risk-based approach should take place given the characteristics it takes on in any independent methodological plane (juridical, psychological, sociological, historical, and political one). As a result, psychological, sociological, and historical factors start working in the process of the juridical construction impact on the object of the legal regulation. And in the long term these factors would enable the mechanism to prevent the illegal beneficial interest of the real beneficiaries to become bot not merely to remove the negative legal, and economic consequences of their misconduct.

Harmonization of the Development of a Resource Region (Based on the Kuzbass)

The article considers the problems related to harmonizing the development of a resource area (a region). Modern scientific literature generally presents resource areas as regions producing oil and natural gas. In the context of the article, Kemerovo Region – Kuzbass is selected as the object of this study, where neither oil nor natural gas are produced, and where the fundamental industry is coal mining. We point out that, in the absence of consensus between authorities and business concerning the prospective development of the region, its economy may decay even despite obvious success in coal extraction and processing. It is strategically important for the Kuzbass to create an efficient infrastructure for transforming the development of the coal industry into the economy-wide development of the region. Taking into account the best international harmonization practices, we propose a conceptual system of mechanisms aimed at coordinating the interests of commoditydriven business and resource area. It is built on defining, assessing and launching the mechanisms for harmonizing ‘common grounds’ shared by coal industry and Kemerovo Region. These mechanisms are as follows: first, moving the decision-making center concerned with mineral resources development into the region imminently close to coal-mining areas; second, effective tax administration; third, increasing localization; fourth, regional infrastructure development; fifth, a new environmental standard for the region; and sixth, a fair social standard in the region. The concept in question relies on the need to introduce business models to the industry management that would harmonize with the interests of the territory. At the same time, the territory should start to build a new economy by creating new standards that would establish requirements for doing business.

Inequality, good governance, and endemic corruption

Can a society suffering contests between rich and poor achieve good governance in the face of endemic corruption? We examine a stylized poor state with weak institutions in which a “culture of evasion” damages state authority. Many evade tax payments, limiting the state’s economic development capability. In the face of extensive corruption, it is challenging for the state to establish and implement policies reflecting good governance: for example, a government that is accountable and transparent, efficient and effective, and follows the rule of law. The rich and poor possess different views on what is the appropriate level of enforcing proper payments of taxes due. The government needs to design an effective tax administration policy that minimizes corruption and is sensitive to the present and future needs of society. To do this, it must understand what drives such widespread corruption.

THE ROLE OF KOGI STATE POLITICAL OFFICE HOLDERS IN TAX ADMINISTRATION

The role of political office holders in tax administration has been an issue of debates in the political spheres of Nigeria. This is because of the important needs to drive internally generated revenue of the state given the fall in federal allocation attributed to the plunged in international oil price. In view of this, the thrust of this study explicate the role of political office holders in tax administration with emphasis to Kogi State. The study identified political office holders as elected individuals, representative or political appointees who managed the affairs of a Country, State and Local Government Area. The study identified tax administration as the act of making tax policy and execution. The role of Kogi State political office holders in tax administration include regulatory role which is concerned with making laws for effective tax administration; stabilization role, this is concerned with stimulating macroeconomics by promoting employment, price stability and economic growth; distributive role, this is concern with the provision of social or public goods and equitable distribution of income. The IGR status of Kogi was presented. The statistical evidence shows that the advent of political office holders in tax administration is positively felt. This evidenced from the increasing trend of IGR of the State. The study identifies some basic problems affecting tax administration in Kogi State which include: tax evasion and tax avoidance. For effective tax administration, the study finally recommends that stake holders in the State should be involved in review tax laws, Tax laws and policies should be made available to taxpayers and explain clearly to their understanding for effective compliance, there is need for periodic lectures, sensitization and seminars to control tax evasion and tax avoidance. Article visualizations:

Subjects and effectiveness of tax control

The article deals with the composition of the participants in the monitoring of tax flows and the effectiveness of tax control (control work) in the part of the tax payments. The purpose of the work is to study the effectiveness of tax administration, fees, payments, monitoring of tax and non-tax (financial) flows in the regions of Ukraine by the results of tax control (control and verification measures). The expediency of using the concepts of «tax and non-tax flows» for deepening and possible in the further studies of mathematical description of the trends of changes in the corresponding budget revenues is substantiated. The interaction of control bodies (tax authorities) and taxpayers as subjects of the tax process is generalized. The functions of the controlling bodies (State Fiscal and Customs Service of Ukraine) to ensure the filling of the revenue part of the state and local budgets are considered. The components of monitoring the administration of taxes, fees, payments are investigated. The analysis of tax and non-tax receipts of income (payments) to ensure the formation of state and local budgets is conducted. The data of the main indicators of control work in the oblasts of the western region of Ukraine for 2014-2018 are presented. Important are additional payments to the Consolidated Budget of Ukraine, which are the result of elimination of violations of the tax legislation of Ukraine (underpayment of taxes and other payments, penalties). The study shows the uneven income of this financial (cash) flow. The share of cash accruals in tax revenues of the Consolidated Budget of Ukraine also shows some fluctuations of the tax flows. The article proves that in the Western regions of Ukraine, the number of documentary checks in 2018 decreased by almost 50% compared to 2014, and the amount of additional accrued monetary liabilities in 2018 increased by one third (33.8%). A similar situation is peculiar to Ukrainian economy. This can be seen as an indication of the improvement in the quality of tax activity in these regions.

Adoption of e-filing: the US journey

To promote effective tax administration, the United States Congress set a goal of 80% of all tax returns filed electronically by 2007. The deadline was extended to 2012, which saw 69% accomplished. Using time series analysis from 2005 to 2016, this study analyses the advancements of electronic tax filings in the USA. Several interesting observations are reported. First, individual e-filing has reached the goal in 2012. Second, overall trends indicate continuous and steady progress both by volume and by share. Third, the total e-filing ratio shows monotonical increase over the years but is still shy of the target in 2016. Fourth, individual e-filing constitutes the majority while business and tax-exempt e-file comprises 15% of the total. Fifth, employment tax e-file, while constituting over half of business e-file, ranks the lowest due to few mandates. Finally, several strategies and recommendations are proposed to reach the composite target.

Adoption of e-filing: the US journey

To promote effective tax administration, the United States Congress set a goal of 80% of all tax returns filed electronically by 2007. The deadline was extended to 2012, which saw 69% accomplished. Using time series analysis from 2005 to 2016, this study analyses the advancements of electronic tax filings in the USA. Several interesting observations are reported. First, individual e-filing has reached the goal in 2012. Second, overall trends indicate continuous and steady progress both by volume and by share. Third, the total e-filing ratio shows monotonical increase over the years but is still shy of the target in 2016. Fourth, individual e-filing constitutes the majority while business and tax-exempt e-file comprises 15% of the total. Fifth, employment tax e-file, while constituting over half of business e-file, ranks the lowest due to few mandates. Finally, several strategies and recommendations are proposed to reach the composite target.

Fiscal Mechanism of Unshadowing of the Economy of Ukraine

Under current circumstances, the imperfect conditions of economic activity, which are formed in the country, have a significant influence on the macroeconomic situation. As a result, the economically unreasonable tax legislation, aimed at instantaneous replenishment of the budget, leads to an excessive tax burden on the real sector of the economy and the formation of its shadow segment. The use of shadow transactions to conceal the tax revenue is a manifestation of deeper processes of redistribution of the gross domestic product in favour of the shadow economy and requires active measures aimed at improving the tax system.The main objective of the article is to consider a way to improve the existing fiscal mechanism by identifying the main reasons for the implementation of shadow operations and the transmission features, as well as to determine the directions of increasing the influence of the fiscal mechanism on reducing the shadow sector of the economy.The article reveals the influence of the fiscal mechanism on the unshadowing of the economy through the formation of a fiscal transmission in the Ukrainian economy as a process of successive transfer of impulses of the fiscal policy of the state, reflecting the relationship between tax instruments and business activity in the real sector.The main channels of fiscal transmission are five types of taxes that are defined by the Tax Code of Ukraine: corporate profit tax, income tax, value added tax, excise tax and duty. Each tax becomes a transmission channel of the fiscal impulse in the process of determining its main components and due to their transmission; a positive effect of unshadowing in the short run is achieved. However, to do this, support for the fiscal impulse should be ensured through changes in related areas of activity and the efficient management of taxation, which includes monitoring of the indicators of the taxpayers activities, performance by the fiscal authorities explanatory work of the tax legislation and introducing an effective tax administration system.Article received 01.05.2018

The Impact of Tax Administration on Revenue Generation in Gombe State, Nigeria

Taxes<em> have been the bedrock of revenue generation to any government. The administration of tax is very important to any government as it is the body responsible for implementing and governing the tax laws and other tax related to assessment, collection and remittance of tax. This study is aimed at ascertaining the effect of tax administration on revenue generation in Gombe state. The study uses survey research design. The primary source of data collection was adopted, which analysed using descriptive statistics was made up of frequencies and simple percentages. Cronbach's Alpha diagnose was carried out to seek for reliability of the questions contained in the questionnaire Three Hypotheses were presented in this research and were tested using Spearman’s Rank correlation, Pearson correlation and linear regression. Research findings indicated that Tax Administration in the state is not efficient and effective. The study revealed further that revenue generated in the state is low to meet its objectives due to low level of enlightenment of tax payers and incidents of tax evasion and tax avoidance. To this end, the study recommends, among others, that authorities should embark on more enlightenment campaign of citizens on the significance of paying Personal Income Tax, the quality and efficiency of tax workers should be improved so that more effective administration will be achieved and automation of the system.</em>