Tax Audit Research Articles

Assessment of the effectiveness of tax control in the Nizhny Novgorod region: theory and practice

The issues of increasing the effectiveness of tax control carried out by the territorial tax authorities of the Federal Tax Service of Russia are an integral element of comprehensive measures aimed at improving tax administration. The main tool of tax control are tax audits: desk and field. Based on the analysis of existing official and author's methods for assessing the effectiveness of tax control, a system of indicators is proposed, using which the author assessed the control activities of tax authorities in the Nizhny Novgorod region for the period 2018-2022.. Both quantitative and qualitative indicators characterizing the achievements of tax audits were used as indicators of the effectiveness of tax control.

Factors that Influence SMEs Taxpayer Compliance with Digitalization of Tax Services as a Moderating Variable at KPP Pratama Medan Belawan

This research aims to determine the influence of Taxpayer awareness, tax socialization, tax collections, Account Representative supervision, and tax audits on SME taxpayer compliance at KPP Pratama Medan Belawan. Apart from that, this research also tests whether service digitalization can be used as a moderating variable in this research. The type of research carried out is causal associative research. The sample used in this research were respondents from 100 SME taxpayers who were actively registered at KPP Pratama Medan Belawan. Slovin's calculations determined the number of research samples used. Meanwhile, the analysis technique used in this research uses structural equation analysis (SEM) with the help of the SmartPLS application. The results of the research show that (1) Taxpayer awareness has a positive and significant effect on Taxpayer compliance, (2) tax socialization has no effect on Taxpayer compliance, (3) tax collections have a positive and significant effect on Taxpayer compliance, (4) Account Representative supervision has no effect on Taxpayer compliance, (5) tax audits have a positive and significant effect on Taxpayer compliance (6) digitalization of tax services has a significant effect in moderating the influence of Taxpayer awareness and tax audits on Taxpayer compliance, (7) digitalization of tax services has no significant effect in moderating the influence of tax socialization, tax collections and Account Representative supervision on Taxpayer compliance. Keywords: taxpayer awareness, tax socialization, tax collection, account representative supervision, tax audit, digitalization of tax services, taxpayer compliance

Exploring the involvement of tax audit experts in the early stages of tax audits

Tax compliance and evasion pose significant challenges to tax authorities in South Africa and other countries. In recent times, corporate governance issues have increasingly involved tax compliance. This study focuses on unresolved audit issues with the South African Revenue Service (SARS), expensive litigation, and lengthy arbitration with the tax Ombudsman. These issues are complicated by legal elucidations, legislative components, and regulatory frameworks. The paper aims to clarify the purpose of a tax legal audit expert at SARS in the initial phases of an audit procedure. To answer this research question, a thorough mapping review using methodical, technique-based literature evaluation was conducted. The study found that the lack of skilled tax legal audit experts hampers the effectiveness and efficiency of tax audits. Therefore, tax authorities must invest in the skills of tax legal audit experts to improve audit outcomes.

The tax audit

The tax audit

Tax Audit Selection by Using of Data Mining Algorithms

Tax Audit Selection by Using of Data Mining Algorithms

Peculiarities of tax audits during martial law

Introduction. Tax audits are a crucial part of any country’s financial system, ensuring taxpayers comply with the law and pay their taxes on time. However, conducting tax audits during wartime can be complicated due to various factors. Ukraine, currently experiencing an extremely difficult period in its development due to the constant threat of war and geopolitical conflicts, serves as the context for this study. The purpose of the paper is to explore the unique challenges of conducting tax audits during wartime. It seeks to understand the changes in tax legislation and audit procedures during war, the increase in tax violations and abuses, and the challenges faced by fiscal authorities in ensuring tax compliance and maintaining budget stability. Results. The study reveals several key features of conducting tax audits during wartime, including changes in legislation, increased tax violations, challenges for fiscal authorities, and preparation for audits. Based on these findings, practical recommendations have been developed for businesses and taxpayers on preparing for tax audits during military operations. Conclusion. The paper concludes with the need for legislative adaptation, the use of technology to simplify the audit process, promoting transparency and mutual trust between tax authorities and taxpayers, and strengthening control over compliance with tax legislation. Despite the challenges that may arise during a state of war, compliance with tax legislation remains the obligation of every taxpayer.

Комплексный механизм правового регулирования межотраслевой согласованности при реализации ст. 57 Конституции России

The implementation of the constitutional obligation to pay taxes fully and on time (Article 57 of the Constitution RF) is ensured by the norms of three branches of law: tax, criminal, and criminal procedure legislation. Pursu-ing one goal (to ensure the payment of taxes), the applied sectoral legal means in some cases act contradicto-rily and not coordinated. The task is to identify the main intersectoral legal discrepancies that have a restraining effect on the fulfillment of the constitutional obligation to pay taxes on time and in full. Methodological basis. The comparative legal method of intersectoral analysis was used. The modeling method was used as a meth-odological tool. The category of complex mechanism of legal regulation of constitutional establishment is taken as a legal model (Article 57 of the Constitution RF). The system-structural method of studying the norms of criminal, criminal procedure and tax legislation in the dynamics of their functioning is used. Conclusions are generalizations of the results of the study of problematic issues: the discrepancy between the timing of tax au-dits and the statute of limitations for criminal prosecution; subjects authorized to identify violations of tax legis-lation. Problems are formulated, the solution of which has yet to be resolved.

THE ROLE OF TAX KNOWLEDGE AS A MODERATION IN THE RELATIONSHIP OF TAX SANCTIONS, TAX AUDIT, AND TAX AMNESTY TOWARDS CORPORATE TAX COMPLIANCE

Tax is a source of state revenue that plays an important role in the development and improvement of a country's economy. According to Law Number 16 of 2009 concerning the fourth amendment to Law Number 6 of 1983 concerning General Provisions and Tax Procedures in Article 1 Paragraph 1 it states that tax is a mandatory contribution to the state owed by individuals or entities that are coercive under the law, by not getting compensation directly and used for the needs of the state for the greatest prosperity of the people. Therefore, taxpayer compliance in submitting reports and paying their tax obligations is highly expected to increase state revenues from taxes. This research was conducted to determine the effect of tax sanctions, tax audits and tax amnesty on corporate tax compliance in the South Nias Regency with tax knowledge as a moderating variable. Determination of the sample in the study was carried out using the random sampling method, with the number of samples used in the study as many as 60 business entities in South Nias Regency which were registered through the Gunungsitoli KP2KP. The results of the path coefficient test show that tax sanctions and tax audits do not affect tax compliance. Tax sanctions do not have a significant effect on corporate taxpayer compliance in South Nias Regency because the level of taxpayer compliance in South Nias Regency registered at KP2KP Gunungsitoli is increasing due to public awareness of the importance of taxes to help increase state revenue and will have an impact on the improvement and development of infrastructure that will be enjoyed again by the community. Tax audits that have no effect on tax compliance are due to the better tax awareness of the community in South Nias Regency so that community compliance to fulfill their tax obligations has been carried out voluntarily. Tax amnesty has a significant effect on corporate tax compliance in South Nias Regency. The policy of implementing tax amnesty is very good to provide opportunities for taxpayers who have long hidden their assets and deliberately not reporting their tax obligations due to the fines that will be paid as a result of these violations. Tax knowledge is not able to moderate the relationship between tax sanctions, tax audits, and tax amnesty on tax compliance. The increasing level of corporate tax compliance in South Nias Regency in an action taken by taxpayers voluntarily due to awareness that arises within themselves to fulfill their tax obligations. Tax knowledge of taxpayers does not play a role or weaken the relationship between tax audits on tax compliance in South Nias Regency. Apart from being caused by ineffective tax audits carried out by tax auditors, it also caused by good tax awareness of corporate taxpayers in South Nias Regency so that taxpayers carry out their tax obligations based on the tax provisions enacted. The increased compliance of corporate taxpayers is influenced by the tax amnesty policy implemented by the Directorate General of Taxes.

Justice, power and voluntary tax compliance: a moderation analysis among taxpayers in Addis Ababa, Ethiopia

PurposeThe aim of this study was to examine the moderating roles of the legitimate power and distributive justice of the tax authority on the effect of procedural justice on the voluntary tax compliance of taxpayers in Addis Ababa, the capital of Ethiopia, by using survey data collected from taxpayers in the city.Design/methodology/approachData for the study were collected from 800 sample taxpayers who were drawn by using a systematic sampling technique. The variables of the study were constructed as indices from composing the scale items developed and tested for their validity by prior researchers. Having collected the data by using a 7-point Likert scale questionnaire and forming the latent variables, hierarchical multiple regressions were applied to determine the moderating effects of the two variables (i.e. legitimate power and distributive justice) on the effect of procedural justice on voluntary tax compliance.FindingsThe author found that both the legitimate power of the tax authority and distributive justice of the authority moderate the effect of procedural justice on voluntary tax compliance. The moderating roles of the two variables appear to be opposite in that low (but not high) distributive justice and high (but not low) legitimate power of the tax authority stimulate the effect of procedural justice on voluntary tax compliance.Research limitations/implicationsThe first limitation is that the data used in this study are self-reported data while the subject of the study is sensitive subject about which respondents are not believed to provide genuine responses. This is presumably because taxpayers are less likely to confess their tax evasion as they fear legal actions following their self-report. Hence, other controlled methods such as the experimental design are recommended to replicate the results of this study. The second limitation is that data for the study were gathered through a one-time cross-sectional survey and hence it would not warrant a causal claim between the study variables. Consequently, other research with a longitudinal or experimental design might warrant a causal relationship between the variables.Practical implicationsTherefore, the tax authorities must endeavor to attain high legitimacy by doing “the right things” as perceived by the taxpayers so that their tax-related decisions gain acceptance from the decision recipients. Tax policy makers as well ought to consider the importance of and the relationship between procedural justice, distributive justice and legitimate power of the tax authority in order to attain the maximum possible voluntary compliance of taxpayers that significantly reduces the administrative cost of taxes.Social implicationsThe study benefits society by enhancing tax compliance and hence helping the government secure a better amount of tax revenue and provide better public goods and services.Originality/valueThe findings of this study are of high theoretical and policy significance. Theoretically, the findings contribute to the integrative literature on economic deterrence and social-psychological factors that are responsible for voluntary tax compliance decisions. The parallel moderating roles of the two variables on the relationship between procedural justice and voluntary cooperation in a single model and in the tax compliance context are novel. In terms of applicability to policy formulations, they shed light on the need for a shift from a pure focus on aggressive tax audits and penalties, especially in emerging economies to a combination of the tax audits and the nurturing of the voluntary deference of taxpayers to the tax authority's decisions. Caution must, however, be taken that the results of this study may not be applicable to tax environments in other countries.

Effect of Tax Audit and Investigations Strategies on Tax Deductions at Source/Advance Tax Payment Method in Nigeria (A Study of South East Geographical Zone)

The study examines the effect of tax audit and investigations strategies on tax deductions at source/ advance tax payment in Nigeria, which is the main objective of the study. Descriptive survey research design was adopted in obtaining data based on the opinion ofrespondentsfrom the Federal Inland Revenue service (FIRS) in Nigeria. The population of the study is 350 staff of FIRS selected from five states in south eastern Nigeria (70 per state), who were administered with a questionnaire. The study made use of convenience sampling technique out of which 250 questionnaires filled by the staff was adopted as the study sample size. The study employed descriptive statisticssuch as percentages and frequencies and the use of linearregression method. The study findings reveal that tax audit and investigations elements have a significant effect on tax deductible at source/ advance tax payment except access to information from other countries revenue authorities which has no significant effect on tax deductible at source/ advance tax payment.

Effect of Tax Audit on Compliance of Taxpayers: A case study of Katsina State Board of Inland Revenue

This paper focus on the effect of tax audit on the compliance of taxpayers in the Katsina State Board of Internal Revenue. This paper adopted the survey research design, using primary data. The questionnaire was structured thematically, in line with the research hypotheses, so that the respondents can concentrate on each theme and provide focused answers. The target population of the study comprised of the entire staff of the Katsina State Board of Internal Revenue in Katsina State which aggregated to a sum of Seventy-five (75) staff. The total staffs of the board were considered for the study consisting of Seventy-five staff. Tax Remittances (TAR) is the dependent variable. Independent Variable Audit Yield (ADY) and Field Tax Audit (FDTA) are considered as having potential effect on Tax Audit. Questions were measured on a 5-point “Likert” scale ranging from strongly disagreed (1) to strongly agreed (5) and a mean was obtained to compare against the expected mean. The result on Tax Compliance proxy by Tax Remittances is found to be positively associated with Audit Yield and Field Tax Audit with a coefficient of 0.342 and statistically significant at 5% with a P-value of 0.007. This goes to prove that Audit Yield field and Tax Audit have a statistically influence on Tax Compliance in Katsina State which implies that the null hypotheses of the study are rejected.

The Role of External Auditors in Improving the Tax Audit Process in Yemen

The aim of the research is to investigate the role of external auditors in improving the tax audit process in Sana'a, Yemen. Primary data was collected using a questionnaire survey administered to a sample of 60 participants, including 33 employees from the tax authority and 27 licensed external auditors by the Ministry of Industry and Trade in Yemen. The study revealed that external auditors play a significant role in enhancing the quality of tax audits by raising taxpayer awareness of the importance of compliance with tax laws and regulations, thereby improving the levels of trust and credibility in the financial information provided in tax returns. The study recommended the application of international audit quality standards and emphasized the need to enhance trust and credibility among tax examiners in the tax returns prepared by external auditors according to audit quality standards, ensuring fairness, accuracy, and reliability of tax return data. The research highlights the importance of external auditing in improving the tax audit process in Yemen and underscores the importance of increasing awareness and adherence to external audit quality standards.

ANALISIS PENGARUH KEGIATAN SOSIALISASI PERPAJAKAN DAN PEMERIKSAAN PAJAK TERHADAP PENERIMAAN PPH PASAL 25/29 WAJIB PAJAK BADAN PADA KPP PRATAMA MEDAN PETISAH

This study aims to find out how to analyze the influence of tax socialization activities and tax audits on income tax revenues article 25/29 for corporate taxpayers at KPP Pratama Medan Petisah. The population in this study is the number of taxpayers who are active and registered at KPP Pratama Medan Petisah from 2015-2022. This study uses primary and secondary data obtained by direct surveys to the field by distributing questionnaires to corporate taxpayers. The data analysis technique used in this study is a descriptive data analysis technique, namely describing and interpreting data according to existing facts.Based on the discussion of the research results obtained, it can be concluded that tax socialization activities at KPP Pratama Medan Petisah partially have a significant positive effect on tax revenues. Tax audit at KPP Pratama Medan Petisah has a significant positive effect on tax revenues. There is a positive influence on the receipt of income tax articles 25/29 for corporate taxpayers. simultaneously tax socialization and tax audit have a positive and significant effect on tax revenues. We can see that the three variables have a positive and significant influence. This means that the more often (positive) tax socialization and tax audit activities are carried out, the income tax revenue article 25/29 will also increase.

Sustainable approach on tax audit inspection

The problem with self-reporting data is that taxpayers can be mindful in declaring their tax returns. In some cases, they may intentionally select information on the financial statement for taxation purposes. Tax audits are an essential tool for this problem, but the coverage ratio for corporate enterprises needs to be higher. Increasing the coverage might be one solution to enforce compliance since tax audits require lots of resources. Directorate General of Taxation (DGT) should consider that some variables may influence a taxpayer’s behavior and then use them in the tax audit program. This paper will discuss how the fee of an independent auditor might affect the tendency to perform tax-aggressive strategies. The analysis looks at 22,519 audited financial reports from Indonesian businesses. The paper will employ Instrument Variables to address the endogeneity issue in the dataset. The finding indicates that audit fees harm tax-aggressive strategies. Thus, audit fee data could predict an audited enterprise’s behavior. The result from this IV estimator can be used as an insight by DGT in determining their tax audit strategy.

ANALISIS FAKTOR-FAKTOR YANG MEMPENGARUHI KEPATUHAN WAJIB PAJAK UMKM DALAM MEMBAYAR PAJAK DI KPP PRATAMA SURABAYA MULYOREJO

Taxes play a very important role in state life, so the government makes various efforts to increase state income. One way is by implementing an independent statistical system, but this also makes tax revenues very dependent on taxpayers' awareness and compliance with their tax obligations. Therefore, this research aims to determine the factors that influence taxpayer performance. This research is quantitative research. The sample used in this research is MSME taxpayers who pay taxes to KPP Pratama Mulyorejo in Surabaya. The sampling method is random sampling. The number of small, medium and micro business taxpayers who filled out the questionnaire was 100 people. The results of this research show that variables such as tax awareness, knowledge and understanding of tax regulations, tax rates, and tax audits have an impact on MSME taxpayer compliance, while tax authorities and tax sanctions have an impact on MSME compliance.

Pengaruh Ekstensifikasi Pajak, Pemeriksaan Pajak, Penagihan Pajak, Kepatuhan Wajib Pajak dan Intensifikasi Pajak Terhadap Penerimaan Pajak (Study Empiris pada KPP Pekanbaru Tampan)

This study aims to examine the effect of tax extensification, tax audit, tax collection, taxpayer compliance and tax intensification on tax revenue at KPP Pratama Pekanbaru Tampan. The population of this study included all employees of KPP Pratama Pekanbaru, totaling 75 people. The data used is primary data with questionnaire data sources. Data analysis used in this study uses a multiple linear regression analysis model where tax extensification, tax inspection, tax collection, taxpayer compliance and tax intensification are the independent variables and tax revenue is the dependent variable. The hypothesis test used is the partial test or t test. The results of this study conclude that tax extensification, tax audit, tax collection, taxpayer compliance have an effect on tax revenue, while tax intensification has no effect on tax revenue.The Adjusted R2results of the five independent variables on the dependent variables have an effect of 73.6%,while the remaining 26,4% are influenced by variables outside the research model.

IMPACT OF THE AUDIT ON THE TRANSPARENCY AND DISCLOSURE OF FINANCIAL INFORMATION

This research work focuses on auditing and its impact on companies. The general objective is to exhaustively analyze the “impact of auditing on the transparency and disclosure of financial information in companies” by conducting interviews with an auditor to know her opinion on the importance of the audit and the positive impact that companies have when applying it. To achieve this objective, a qualitative approach was used. The mandatory tax audit is a legal requirement and not an option, its value is established by the SET and must be requested. According to the suppliers, the accounting is rated with a “5”. The audited companies provide additional details, such as purchase forms by items or areas and by type of products, which increases the reliability of financial information.Auditors monitor the implementation of policies and procedures, identify errors and poor practices, and offer recommendations for improvements. Although auditing is not the only source for investment decisions, more than 85% of investors consider it. Interpersonal relationships improve significantly with the auditors’ opinion, increasing the transparency of the company. It is suggested that the audit should be carried out without being mandatory to have a greater impact. The audited companies must know the technical control standards to comply with them rigorously, and the results The final results of the audits must be objective, comply with the technical processes and the law. In conclusion, this research work provides valuable information on the implementation of the audit in companies.

Regulatory role of taxes in activities agricultural producers

The article assesses the regulatory role of taxes in the activities of agricultural producers. Based on the systematization of tax legislation, a conclusion was made about the possibilities of choosing the optimal taxation system in order to reduce the tax burden, which is one of the criteria for selecting a taxpayer as an object of an on-site tax audit.

Tax Avoidance: How Board of Directors Diversity Strategies are Applied in Facing Tax Audits?

This study aims to provide empirical evidence about the determinants of tax avoidance with tax audit as a moderating variable in energy companies in Indonesia. The determinants of tax avoidance referred to are the diversity of the board of directors (gender, education, and experience in office). The population of this research are all energy companies listed on the Indonesia Stock Exchange in 2016-2021. The sampling technique is purposive sampling which resulted in 102 observations. The results of testing show that the tax audit strengthens the effect of the gender diversity of the board of directors on tax avoidance, while the tax audit weakens the effect of educational diversity and experience serving the board of directors on tax avoidance.

Sengketa Pajak atas Koreksi Biaya Royalti dan Secondary Adjustment (Studi Kasus Putusan Banding PT XYZ)

The purpose of this study is to analyze transfer pricing disputes over royalty cost correction and the imposition of Secondary Adjustment and provide recommendations both to the tax authorities in the audit process and to taxpayers in the company's financial reporting in the future. Based on the object of research, there are differences in the results of the decision on the dispute over the correction of royalty costs of PT XYZ for the 2009 to 2015 tax years and there has been no research on the imposition of Secondary Adjustment in previous studies. The research method used is a qualitative method with a case study approach by looking at secondary data in the form of PT XYZ Appeal Decisions for tax years 2009, 2011, 2013, 2014 and 2015 as well as interviews with consultants, tax auditors and objection reviewers. The results of the study concluded that the royalty fees charged were not in accordance with the arm’s length principles. The tax auditors is less than optimal in conducting the examination by not imposing Secondary Adjustment for the examination of Tax Years 2013, 2014 and 2015.