Tax Collection Performance Research Articles

Effect of Electronic Tax System on Tax Collection Performance in Rwanda: A Case of Musanze District (2018-2021)

Effect of Electronic Tax System on Tax Collection Performance in Rwanda: A Case of Musanze District (2018-2021)

Analysis of Tax Collection Performance at the Bengkulu Pratama II Tax Service Office

The title of this research is Analysis of Tax Service Performance at the Bengkulu Pratama II Tax Service Office. Improving the quality of public services can be improved through improving service quality management, namely efforts to minimize the gap between service levels and consumer expectations. This research aims to determine the quantity, quality and timeliness of work in tax services at the Bengkulu Pratama II Tax Service Office. The object in this research at the Bengkulu Pratama II Tax Service Office. Meanwhile, the research subjects in this study were employees in the Service Section of the Bengkulu Pratama II Tax Service Office and taxpayers. Data collection techniques include interviews and literature study. Data analysis in this research is in the form of qualitative analysis, the results of this research can be concluded that the quantity of Tax service work at the Bengkulu Pratama II Tax Service Office is in accordance with the respective fields. For the quality of tax service work at the Bengkulu Pratama II Tax Service Office, the standard of employee work quality at the Pratama Tax Service Office is determined by statutory regulations. Meanwhile, punctuality of tax services at the Bengkulu Pratama II Tax Service Office was conducted by employees of the Pratama Tax Service Office to increase punctuality in paying taxes, achieving timely reporting on time and paying on time

The Influence of Taxpayer Education in Tax Collection Performance: A Case of Tanzania Revenue Authority, Dar Es Salaam Tax Regions

The Influence of Taxpayer Education in Tax Collection Performance: A Case of Tanzania Revenue Authority, Dar Es Salaam Tax Regions

Ethiopian Direct Tax System: The Reform of 2016 and Perception of Business and Employment Income Taxpayers

The objective of the study was to analyze the Ethiopian direct tax system focusing on the reform of the 2016 and perception of the taxpayers towards the fairness of the direct tax system. To achieve the objective of the study descriptive and inferential research design and mixed research approach was adopted. As data sources, both primary and secondary data sources were collected. Primary data was gathered from 768 employment and business income taxpayers found in Addis Ababa via a standard questionnaire. Besides, secondary data were gathered from the Ministry of Finance and economic cooperation for the period 2007/08 to 2020/2. The collected data were analyzed by using descriptive data analysis tools. In order to compare the perception and the tax collection performance Mann Whitney U test and paired samples t-test test was conducted respectively. The major findings of the study show that there is a significant variation in the perception of employment and business income taxpayers on the fairness of the Ethiopian direct tax system. The employment income taxpayers didn’t believe that the current income tax system of Ethiopia is fair from the different dimensions of fairness while the business income taxpayers agreed to most of the dimensions. The paired samples t-test confirmed that the direct tax revenue shows a significant mean increment after the reform of 2016 than before at a 5% level of significance. The Ethiopian direct tax system needs a major revision or reform to enhance the contribution of business income tax revenue, rental income tax revenue, and other taxes. In addition, the tax authority is recommended to employ sound administration and control systems for the collection of domestic indirect tax.

Fiscal performance and elections in the context of a transition economy

It is widely accepted that, in democratic societies, incumbent governments may use various means, such as discretionary spending, to increase their chances of re-election. In the context of potential budget constraints (e.g., large debt), the incumbent might consider alternative means. Tax collection performance could be one such means that is prone to incumbents’ electoral manipulation, particularly in transition countries with a weak institutional framework. Investigating Albania, we show that fiscal performance, measured by monthly tax revenues, is poor before elections, especially in elections that result in political change. Before all elections, we observe a reduction in tax collection ranging from 3.2 percentage points in the twelve months before elections to 4.0 percentage points in the six months before elections. This implies a drop of more than half in fiscal performance compared with its long-term “natural” or average rate. Moreover, the deterioration in performance is considerably larger, by two- to threefold, before “change elections” (i.e. elections that result in a change of the governing party). After these elections, fiscal performance improves. The key to reducing deterioration in fiscal performance associated with elections is to establish rules and institutional oversight (independent or bipartisan) that reduce the discretion of tax authorities.

Actors Affecting Turnover Tax Collection Performance: A Case of West Shoa Zone Selected Districts

Factors affecting turnover tax collection performance. A case of West Shoa Zone selected districts. In 2017/18 the targeted revenue was 9041224 birr with the actual revenue being 7888536 birr (equivalent to 87.25% or a difference of 1152688) was existence of turnover tax collection gap. This study used mixed research approach and sampling (Systematic random, purposive sampling). Sample sizes 373 respondents selected and distributed questionnaires and interview. Data analyze by SPSS version 20 and factor analysis. Findings revealed that; employee qualification and manpower, taxpayer registrations, technology and information system, management commitment level and tax knowledge affects turnover tax performance positively. It was revealed that perpetuation tax fairness affects negatively where as compliance cost has a negative statistically insignificant. They concluded that the problems facing revenue administration office while collecting turnover tax. Based on the study recommended that revenue authority need to develop strategic management commitment, recruit sufficient number of employees and continues training qualification, maintaining tax fairness and equity, improve taxpayer identification and registration, increase number of users of Electronic Tax Register, extensive tax knowledge (awareness) creation programs update and maximize frequency tax audit effective on field compromising a priority task.

Factors Affecting Turnover Tax Collection Performance: A Case of West Shoa Zone Selected Districts

Factors affecting turnover tax collection performance. A case of West Shoa Zone selected districts. In 2017/18 the targeted revenue was 9041224 birr with the actual revenue being 7888536 birr (equivalent to 87.25% or a difference of 1152688) was existence of turnover tax collection gap. This study was using mixed research approach. Sampling technique used by Systematic random and purposive sampling. Sample sizes of 373 respondents were selected and distributed questionnaires and interview. Data analyze by SPSS software 20 and factor analysis. Findings revealed that; employee qualification and manpower, taxpayer registrations, technology and information system, management commitment level and tax knowledge affects revenue performance of turnover tax positively. It was also revealed that the perpetuation of tax fairness affects negatively whereas compliance cost has a negative statistically insignificant. They concluded that there are problems facing the revenue administration office while collecting turnover tax revenue. Based on the study it is recommended that revenue authority need to develop their strategic management commitment, recruit sufficient number of employees and continues training on qualification, maintaining tax fairness and equity, improve taxpayer identification and registration, should increase the number of users of Electronic Tax Register, conducting extensive tax knowledge (awareness) creation programs to update and maximize frequency tax audit effective on field compromising should be a priority task.

Worldwide Tax Revenue Collection: Lessons from Pre-Pandemic Era

Despite the fact that majority of countries in the world rely heavily on tax revenue, there is a vast difference in terms of tax collection performance. This study reassessed several structural, economic, demographic and institutional factors that potentially explain the variation. We employ pooled OLS, fixed effect and system GMM estimations to analyze a panel data of 161 countries for 15 years spanning from 2002 to 2017. Our findings confirmed that level of development and investment are among key factors that leads to revenue improvement. It is very likely that such a relationship has two-way directions. Other factors such as trade openness, inflation, share of agriculture and national resources in the economy, population, and governance, cannot be downplayed despite its mixed inferences.

Comparative Analysis of Government Revenue and Expenditures In The Case of the Federal Government of Ethiopia

In civilized societies taxation is one of the oldest activities, which has been playing a key role for thousands of years. Public expenditure in developing countries like Ethiopia plays an important role in the process of economic development. The general objective of the study was to make a Comparative analysis of government tax revenue and expenditure budget of the federal government of Ethiopia. To conduct the study both primary and secondary data were used. Primary data were collected from the ministry of finance and economic cooperation and the tax authority using questionnaire and interviews. The collected data were analyzed using SPSS 21 version. The findings show that the tax authority has limitations in using technologies to modernize the tax administration, poor the tax collection capacity. The Tax to GDP ratio of the country is low as compared to the sub-Saharan countries. There are different factors for the poor tax collection performance; weak enforcement and low tax audit coverage, and lack of strong cooperation with stakeholders. The government has weaknesses in the management public resources. The tax authority should use different Medias to create taxpayers awareness about tax, should strengthen its tax enforcement department to bring non taxpayers to the tax net.

FACTORS AFFECTING TURNOVER TAX COLLECTION PERFORMANCE: A CASE OF WEST SHOA SELECTED WOREDAS

The purpose of this study was to determine the factors affecting turnover tax collection performance in West Shoa Zone selected Woredas. In 2017/18 the targeted revenue was 9041224 birr with the actual revenue being 7888536 birr (equivalent to 87.25% or a difference of 1152688) was existence of turnover tax collection gap. This study was using mixed research approach. Systematic random sampling used to selected taxpayers and purposive sampling to selected Woreda tax officers. Sample sizes of 373 respondents were selected from Nono, Chaliya and Ejere Woreda. Questionnaires and interview were used to collect data. The multiple linear regression method using the SPSS software 20 and factor analysis was used to analyze the data. Findings of this study revealed that; employee qualification and manpower, taxpayer registrations, technology and information system, management commitment level, tax audit, turnover tax rate and tax knowledge affects the revenue performance of turnover tax positively. It was also revealed that the perpetuation of tax evasion and tax fairness affects the revenue performance of turnover tax negatively whereas compliance cost and tax avoidance has a negative relationship with turnover tax performance but found statistically insignificant. The study concluded that there are problems facing the revenue administration office while collecting turnover tax revenue. Based on the study it is recommended that revenue authority need to develop their strategic management commitment , recruit sufficient number of employees and continues training on qualification, maintaining tax fairness and equity, improve taxpayer identification and registration, should increase the number of users of Electronic Tax Register, they should be control tax evasion, fixed turnover tax rate with legal actions should be taken to people found guilty, conducting extensive tax knowledge (awareness) creation programs to update and maximize frequency tax audit effective on field compromising should be a priority task.

ANALISIS KINERJA PEMUNGUTAN DAN RETRIBUSI PAJAK REKLAME TERHADAP PENDAPATAN ASLI DAERAH KOTA BATAM

This study aims to find answers to the level of advertisement tax collection performance in the city of Batam, and its contribution to local tax revenue. This research applies a descriptive analysis method, The object of this study is Batam City. The sampling technique used is non-probability sampling, that is the technique of determining the sample using certain considerations or by using financial statements from 2015 to 2019. The results of hypothesis testing using multiple regression analysis methods show that the performance of the collection and retribution of advertisement tax levies on Batam City Dispenda has a significant effect on the local revenue. While partially the performance of collection on the Batam City Dispenda has a significant relationship to the original revenue of the region, however, advertisement tax levies have a significant effect on the region's original revenue on the Batam City.

Menjawab Tantangan Pelaksanaan Penagihan Pajak Menuju Reformasi Perpajakan Indonesia

Tax collection realization at Kanwil DJP Jateng II in 2018 increased sharply, but tax arrears were still large. This study analyzed the challenges faced in implementing tax collection, finding the efforts that have been made to overcome them, and formulating what is needed to optimize tax collection. The study was descriptive qualitative. Primary data, secondary data, and literature studies were used. Primary data were obtained from questionnaires filled by Bailiff and Head of Tax Collection Section, and interviews with the tax officials. Secondary data were obtained from reports and other data. Results showed that the three biggest challenges were: HR, both in quantity and quality; administration, in the form of incomplete or invalid data; and difficulty in finding the taxpayer and the risk of a lawsuit. The efforts that have been made were: increasing the competencies of both hardskill and soft skills; internal coordination, especially with account representatives and tax auditors; management of tax arrears, and conduct coordination with related stakeholders. Things that need to be done to improve tax collection performance are: data accessibility, Bailiff protection, infrastructure, regulations and applications, position and remuneration certainty, and competence.

Investigation of Tax Assessment Challenges of Category “C” Business Income Tax Payers in Debre Markos Town

This study Investigates Tax Assessment Challenges of Category “C” Business Income Tax Payers In Debre Markos Town . The study adopts a mixed methods research approach by combining data gathering instruments of research questions, in-depth interviews and document analysis. The questionnaire data were analyzed using descriptive statistics, correlations, and logistic regression analysis and data from interview and document reviews were interpreted qualitatively. The findings of the study show that, the five variables which are Tax law enforcement, Taxpayers attitude, Educational level of taxpayers, Level of taxpayers actual income, and Tax system fairness significantly influence the tax collection performance of Debre Markos town tax Authority. The study suggests that the tax authority should create awareness towards the taxpayers why tax are levied from them and change the negative attitude of taxpayers towards tax. The tax authority should be clear of the way of tax estimation, what and how presumptive taxation applicable to tax payers through discussion agendas with taxpayers. Keywords: Tax assessment, business income tax payers, category ‘C’ taxpayers, presumptive taxation DOI: 10.7176/RJFA/11-7-02 Publication date: April 30 th 2020

Determinants of Value Added Tax Collection Performance in West Shoa Zone, Oromia Regional State, Ethiopia

The study was conducted to investigate the determinant factors of Value Added Tax collection performance in West Shoa Zone by giving emphasis on three selected districts i.e. Ambo city Revenues Authority, Dandi and Bako woredas Revenues Authority’s. The researchers used cross-sectional data covering a period in 2017. Since the data was survey in nature the researcher used both qualitative and quantitative (Mixed) research approaches to achieve objective of the study. The researchers used purposive and stratified sampling method to take a sample of Tax payers, Consumers and Revenues Authority Employees. Descriptive statistics and multiple regressions were used to analyze primary and secondary data to reach the result of the study using Statistical Package for Social Science (SPSS) version 20. The result of the study showed that Tax payers awareness on Value added Tax, Tax payers’ maintenance of account and Value added Tax Rate have positively influenced Value added Tax collection performance whereas Tax Evasion, Tax avoidance and Tax non-compliance variables have negatively affected Value added Tax collection performance for tax payers. The study results also showed that Value added Tax Assessment, Value added Tax Audit, Competence training, Adequate manpower, Tax payers identification and Penalization variables have positively influenced Value added Tax collection performance whereas External Legal Environment variable negatively affected Value added Tax collection performance for institutional variables. Thus, it’s recommended that Revenues Authority should fulfill necessary manpower and create continuous follow up in order to improve Value added Tax collection performance. Keywords: Value added Tax, Tax avoidance, Tax Evasion, performance, Tax payers DOI : 10.7176/RJFA/10-21-06 Publication date: November 30 th 2019

The Analysis of Factors Influencing Effectivenes of Property Taxes in Karanganyar Regency

The purpose of this study was to test empirically Effect of Compensation, Motivation and External Factors To Performance Officer With Property Taxes Voting in the District Effectiveness Matesih Karanganyar. The analysis technique used is using validity and reliability test, linearity test, regression analysis, path analysis, t test, F test, test the coefficient of determination and correlation analysis. Compensation Hypothesis Test Results significantly influence the effectiveness of tax collection. Motivation significantly influences the effectiveness of tax collection. External factors do not significant effect on effectiveness of tax collection. Compensation significant effect on the performance of Officers. Motivation significant effect on the performance of the Property Taxes polling clerk. External factors do not significant effect on the performance of Officers. Effectiveness of tax collection clerk significant effects on performance. F test results can be concluded jointly variable compensation, motivation, and external factors affecting the effectiveness of tax collection performance. The R2 total of 0,974 means that the performance of the Property Taxes in the district polling officer Matesih Karanganyar explained by the variable compensation, motivation, external factors and the effectiveness of tax collection amounted to 97.4%. The results of path analysis showed that the effective compensation and motivation through a direct path, while external factors are not effective for direct and indirect pathways.

Tax Administration in Russia

Material changes in the Russian tax administration have boosted tax revenues on the back of improved tax collection performance, without raising the tax burden. Tax service informatization allows for automatic detection of fly-by-night companies, thereby contributing to the formation of a fair and equitable competitive environment. However, substantial resources are available and yet to be employed to improve tax administration.

La recaudación del impuesto predial en México: un análisis de sus determinantes económicos en el período 1969-2010

This article analyzes the factors that account for the differences among states in collecting property tax in Mexico during the 1969-2010 period. It focuses on some variables that the literature has identified as determinants of tax collection performance, emphasizing the substitution effect hypothesis which asserts that local governments reduce their taxation when they have access to alternate funding sources with fewer political costs. We also analyze the effect of two constitutional reforms to article 115 aimed at improving property tax collection. Based on an econometric model with panel data, our results show that only conditional transfers (from the Ramo 33) have a negative effect on local taxation, but revenue-share transfers from the federal government dot no. The main obstacle that the property tax faces to improve its performance comes from rural areas for three reasons: the property value is lower, local governments have weaker administrative capacities to collect taxes, and the Mexican ejido has historically been exempted from paying property taxes. Finally, we show that the constitutional reforms were ineffective in improving tax-collection performance of municipalities.

Mayoral Public Sector Work Experience and Tax Collection Performance in Colombian Local Governments

Local governments in Latin America tend to have limited capacity to collect taxes. Existing theory explains tax collection performance as a function of political, socio-economic, and cultural factors. Yet across Latin America, tax collection performance varies greatly between localities that are similar along these dimensions. We suggest that organizational capacity, represented by managers’ human capital, explains variation in local tax collection performance. We test this theoretical idea against panel data on most Colombian local governments, where elected mayors are the top managers determining the local tax collection strategy. We examine two indicators of tax collection performance: (i) the per-capita amount of property tax collected; and (ii) property tax collected as a percentage of total property valuation. Controlling for important confounders, the length of the mayor’s prior public sector work experience is positively associated with the per-capita amount of property tax collected but not the percentage of total property valuation collected in property tax. Our results suggest that Colombian mayors gain relevant skills over their career. Our study has implications for other developing countries with a similar property tax collection system.

Mayoral Public Sector Work Experience and Tax Collection Performance in Colombian Local Governments

ABSTRACT Local governments in Latin America tend to have limited capacity to collect taxes. Existing theory explains tax collection performance as a function of political, socio-economic, and cultural factors. Yet across Latin America, tax collection performance varies greatly between localities that are similar along these dimensions. We suggest that organizational capacity, represented by managers' human capital, explains variation in local tax collection performance. We test this theoretical idea against panel data on most Colombian local governments, where elected mayors are the top managers determining the local tax collection strategy. We examine two indicators of tax collection performance: (1) the per-capita amount of property tax collected and (2) property tax collected as a percentage of total property valuation. Controlling for important confounders, the length of the mayor's prior public sector work experience is positively associated with the per-capita amount of property tax collected but not the percentage of total property valuation collected in property tax. Our results suggest that Colombian mayors gain relevant skills over their career. Our study has implications for other developing countries with a similar property tax collection system.

VAT Evasion and Its Consequence for Macroeconomic Clearing in the EU

Full movement from the destination principle to the origin principle would lead to changes in VAT revenues in EU countries. Hence a clearing mechanism is necessary to rectify such imbalances. To estimate the relevance of VAT evasion this study quantifies the annual amounts of hypothetical VAT revenues based on national-accounts data. The relation between hypothetical and collected revenues indicates the tax collection performance rate, and this determines the extent of VAT evasion. Macroeconomic clearing is supposed to occur in the EU, based on the national share of hypothetical revenues of the member countries. Yet this system suffers from adverse incentives for individual nations, since those with a higher evasion ratio will gain: For those countries with an above-EU-average evasion rate the sum of apportioned VAT revenues will be larger than the anticipated collected revenues in the case of prevailing current tax practice.