Tax Compliance Research Articles

Adverse Possession Laws: A Comparison Between Taxation Law and Property Law

This paper explores the intricate relationship between taxation and adverse possession, focusing on the implications for government revenue. Adverse possession allows individuals to claim legal title to property after continuous, open, and hostile occupation for a statutory period, while taxation ensures that property owners contribute to government finances through property taxes. The interaction of these legal frameworks presents challenges, particularly regarding unpaid taxes during the possession period and the responsibility of tax compliance. The potential for tax arrears, tax liens, and property sales to recover lost revenue are critical issues for governments seeking to maintain revenue stability. Additionally, the ambiguity surrounding taxpayer responsibility during adverse possession can lead to gaps in tax collection. This paper analyzes these challenges and highlights potential solutions, including legislative reforms requiring tax payments by adverse possessors and improved tax collection mechanisms to safeguard public revenue. By examining the overlap between adverse possession and taxation law, this paper aims to provide insights into preserving government revenue while addressing the complexities of land ownership transitions.

The Effect Of Understanding Tax Digitalization, Digital Literacy On Tax Awereness

Taxpayer awareness involves understanding, accepting, and complying with tax regulations while demonstrating a willingness to fulfill tax obligations. This research aims to examine the impact of digital literacy on tax education among residents of West Bandung. Using the Slovin formula, 100 respondents were selected through probability sampling with a random technique. Data analysis was carried out using partial least squares and descriptive statistical methods. The findings of the study reveal that digital literacy and the digitalization of tax processes significantly and positively influence taxpayer awareness in the West Bandung area. These results highlight the importance of integrating digital tools into tax education programs, as they enhance taxpayers' knowledge and compliance with tax regulations. This research underscores how improved digital literacy can lead to a better tax compliance, providing valuable insights for policymakers. It suggests that by embracing digitalization, local communities can foster greater awareness and understanding of their tax responsibilities.

A Crucible of IoT Applications and Services and the Gambia Revenue Generation

The study investigated the relationship between Internet of Things (IoT) applications and services and The Gambia revenue generation, tax evasion and tax compliance respectively. It identified the challenges impeding the adoption and implementation of IoT applications and services in the revenue generation processes by the Gambia Revenue Authority (GRA). Both primary and secondary data were used in the study. Questionnaire and interview were used to generate the primary data. The study population (2188) comprised senior and mid-tier management personnel from the Ministry of Finance and Economic Affairs (MoFEA), staff members of The Gambia Revenue Authority, and the corporate taxpayers. The sampling approach used in this study was multistage. Personnel from the MoFEA and GRA were purposively selected, while corporate taxpayers were randomly selected. Their populations were then divided into various strata to ensure fair representation. Respondents were randomly picked from each stratum. To ensure an appropriate sample size, 327 individuals were selected. Data obtained were analysed using multiple regression, correlation coefficient, and simple regression analysis. Qualitative analyses were done on the interview responses. The study revealed that connectivity, networking, and data collection improve revenue generation, while increased IoT adoption and higher data utilisation and infrastructure investment reduce tax evasion and boost tax compliance. However, implementation of the IoT has encountered challenges in the form of technological barriers, financial constraints, and skill gaps. In view of these, investment must be made in enhancing connectivity and networking infrastructure, training staff in data analytics and cyber-security to optimise IoT data usage and boost IoT adoption through inducements and awareness programs. The study concluded that IOT applications and services are in the right direction to revolutionise The Gambia revenue generation.

The Influence of Tax Understanding and Income Tax Incentives on MSME Tax Compliance, Moderated by Tax Digitalization

The Influence of Tax Understanding and Income Tax Incentives on MSME Tax Compliance, Moderated by Tax Digitalization

Socio- Psychological Determinants, Compliance Cost and Value Added Tax Compliance

Socio- Psychological Determinants, Compliance Cost and Value Added Tax Compliance

Nudging for Tax Compliance: a Meta-Analysis

Nudging for Tax Compliance: a Meta-Analysis

Analysis of Tax Compliance Intentions amongst Small Business Owners in Kathmandu Valley: An application of the Theory of Planned Behavior

Governments heavily rely on tax revenue, imposing taxes on incomes, assets, and products of individuals and entities. However, tax compliance remains a global challenge due to complexities, systemic flaws, and taxpayer ignorance. In Nepal, particularly among small business owners, there is a lack of research on tax compliance intentions. This study aims to understand taxpayers' intentions regarding tax compliance, focusing on small business owners in Kathmandu Valley. The Theory of Planned Behavior (TPB) was employed to measure intentions using structured questionnaires and structural equation modeling (SEM) with SPSS and AMOS software. The study surveyed 200 small business owners, revealing that only 48.38% were aware of their tax compliance intentions. Additionally, 61.5% reported difficulties in paying taxes and criticized the government for insufficient tax awareness initiatives. Despite this, 74.74% believed that staying updated with changing government regulations could help manage tax challenges. The SEM results showed significant correlations between tax compliance intentions and factors like tax morale, tax complexity, and trust in the government. Most small businesses were registered and filed taxes annually, yet their compliance intentions were largely influenced by fear of fines. Furthermore, variables such as attitudes toward paying and avoiding taxes, belief in government, and the complexity of tax procedures also impacted compliance. The study concludes that improving tax services, enforcing more effective penalties, enhancing tax morale, and ensuring information transparency are crucial to facilitating tax compliance among small business owners in Nepal.

A global assemblage of tax haven clusters: profit shifting, tax dodging and money laundering

In this paper we explore a selection of tax haven clusters in the US and Europe as diverse but recognisable species of some fifty of the phenomena worldwide that have been seldom studied from an economic geography or spatial planning viewpoint. We treat the objects of study as being almost perfect expressions of the classical, canonical cluster configuration. They are: spatial agglomeration, untraded as well as market dependencies, small and medium-sized enterprise status, associative or agentic relationships, interaction with large firms inside or outside the cluster and knowledge acquisition, advisory, consultancy and knowledge translation services from research and innovation intermediaries - public and/or private. However, we think their characteristics demand further recognition of the interactive and often innovative communication networks by means of which these cluster incumbents interact globally. This is because they are set within a worldwide system that can be conceptualised as an exemplar of the well-known construct known as an ‘assemblage’ (Deleuze and Guattari, 2004a). Unlike more recent treatments from De Landa (2019) and others, we try to concentrate on the motive power of the ‘agentic’ impulses of ‘desire’ that motivate human action (e.g. regarding ‘God, Gold or Glory’ as commonly-rehearsed motivators for colonialism of various kinds). It has been more common to use ‘assemblage theory’ to analyse the interlocking ‘machinic’ elements of complex systems like power networks or laboratory interactions. To unlock the mysteries of system interlocking in our selected tax havens, which comprise Wilmington, Delaware (US), Ireland (EU) and Gibraltar (former EU, now British Overseas Territory) – post-Brexit - occupying a ‘quantum’ space ‘in which both the colonial and post-colonial find expression’ (Perera, 2021). Methodologically, we seek ‘pattern recognition’ to identify the lineaments that explain these clusters and the ‘agentic’ actors that motivate them.

Exploring The Impact of Internet of Things (Iot) Technologies on Tax Compliance: Opportunities, Challenges and Policy Implications

The proliferation of Internet of Things (IoT) technologies has revolutionized various aspects of modern life, including business operations and government services. This research paper delves into the intersection of IoT technologies and tax compliance, aiming to elucidate the opportunities, challenges, and policy implications arising from their integration. Through a comprehensive review and analysis of existing literature, this paper seeks to provide insights into the transformative potential of IoT in tax compliance, while also highlighting potential hurdles and offering policy recommendations. IoT technologies offer a myriad of opportunities to enhance tax compliance processes for both taxpayers and tax authorities. The ability of IoT devices to collect real-time data and automate various tasks can streamline recordkeeping, improve accuracy in reporting, and enable proactive compliance measures. For taxpayers, IoT-enabled systems can simplify tax documentation, minimize errors, and provide timely reminders for compliance deadlines. Likewise, tax authorities can leverage IoT data for better monitoring, enforcement, and risk assessment, thus enhancing overall tax administration efficiency. However, the integration of IoT in tax compliance also presents notable challenges. Privacy and data security concerns emerge as paramount considerations, given the sensitive nature of financial information involved in taxation. The vast amount of data generated by IoT devices also raises questions regarding data governance, ownership, and liability. Moreover, the digital divide may exacerbate existing disparities in access to IoT technologies, potentially marginalizing certain segments of the population and hindering equitable tax compliance. In light of these opportunities and challenges, policymakers must carefully design regulations and guidelines to harness the benefits of IoT while mitigating associated risks. Clear standards for data protection, encryption, and user consent are essential to safeguard taxpayer privacy and instill trust in IoT-enabled tax compliance systems. Additionally, implementation of measures to bridge the digital divide and ensure equitable access to IoT technologies, thereby promoting inclusivity in tax compliance efforts. Furthermore, tax authorities need to develop robust frameworks for data governance, encompassing data collection, storage, sharing, and usage. Collaboration between public and private sectors is crucial to foster innovation in IoT-based tax compliance solutions while adhering to regulatory requirements and ethical principles. In conclusion, the integration of IoT technologies in tax compliance holds immense potential to revolutionize the way in which taxes administered and enforced. However, realizing this potential necessitates a holistic approach that addresses technical, legal, and socio-economic considerations. By embracing innovation while safeguarding privacy and inclusivity, governments can harness the transformative power of IoT to foster more efficient, transparent, and equitable tax systems.

Determinants of Tax Compliance Behavior: A Case Study in Ethiopia

Policymakers and tax authorities in developing countries face challenges in comprehending the determinants of tax-compliance behavior. This study employs empirical investigation to explore the factors that influence taxpayers’ voluntary and enforced tax compliance behaviors. Data were collected through a survey questionnaire distributed to 400 taxpayers using simple random sampling and analyzed using an ordered logit model. The results validate the assumptions of the slippery slope framework, showing that trust significantly impacts voluntary tax compliance and that a strong tax authority’s power contributes to more enforced tax compliance in Ethiopia. Additionally, the interaction between trust and power has a more significant effect on enforced tax compliance. This study also emphasizes the importance of improving trust in increasing tax compliance. Moreover, factors such as equity, fairness, tax knowledge, effective tax usage, and taxpayer morale contribute to tax compliance. By identifying factors that contribute to tax compliance, the findings of this research provide valuable insights for tax authorities in Ethiopia and other developing countries in devising strategies to combat tax evasion. This includes implementing a fair tax regime, enhancing the perceived value of public services financed by tax payments, increasing tax knowledge activities to help people understand the importance of paying taxes, and fortifying frameworks to minimize extravagant spending for maintaining public trust and ensuring effective and efficient use of taxpayers’ money.

Tax Morale, Governance Quality And Tax Compliance

This study aims to investigate the relationship between tax morale, governance quality, and tax compliance in Nigeria. The study used the library research approach, which involved examining books, academic journals, and conference papers. According to the evaluation, tax compliance in Nigeria remains below standard, resulting in low tax morale, which is influenced by people's perceptions of government services, a lack of justice, and trust. The study also discovers that tax morale has a significant impact on tax noncompliance, such as a decrease in foreign portfolio equity investment inflows for tax avoidance, self-employed tax payers, and perceptions of higher tax fines and difficulty evading taxes. The study also discovers a favourable link between government quality (excellent governance, views of government accountability and provisions) and tax compliance. Studies have shown a considerable association between tax morale, governance quality, and tax compliance. The study recommends that government put in place efficient and effective tax collection policies, through providing people with accessible ways of paying their taxes, simplifying the process and reduction of taxes imposed on lower income individuals.

Tax control and corporate VAT compliance: An empirical assessment of the moderating role of tax strategy

Tax control frameworks (TCF) of higher quality are seen by tax authorities and the OECD as a prerequisite for corporate tax compliance. However, a higher quality TCF can also enable organizations to reduce their tax burden by providing information that allows them to make the best use of opportunities within the boundaries of the tax law. We investigate the effect of TCF quality on tax compliance by looking at the tax strategy of the organization and whether the organization unintentionally or intentionally fails to comply. We focus on Value Added Tax (VAT) and test our hypotheses using a sample of large organizations, using a combination of survey data and tax audit results from the Netherlands. Our results show that a TCF of higher quality is positively associated with VAT compliance, resulting in both less unintentional and less intentional errors requiring tax adjustment. For organizations with a more conservative tax strategy, we find that the quality of the TCF does not affect the level of intentional non-compliance. For organizations with a more aggressive tax strategy, however, the level of intentional non-compliance is conditional upon the quality of the TCF, with a lower (higher) quality TCF leading to more (less) intentional non-compliance.

Integrating tax amnesty, CSR, and emerging technologies: Exploring ethical challenges and strategic choices

This paper explores the relationship between tax amnesty programs and Corporate Social Responsibility (CSR), focusing on the ethical challenges businesses face as they navigate financial decisions and societal obligations. While tax amnesty offers financial relief, it raises significant concerns about ethical behavior and transparency. The evolution of CSR into a strategic priority necessitates a careful balance between financial goals and broader societal contributions. Emerging technologies, such as artficial intelligence (AI), blockchain, and data analytics, are transforming tax compliance and CSR practices by enhancing transparency and accountability, but they also introduce new ethical dilemmas. This study integrates theoretical frameworks with practical insights, highlighting the need for businesses to align tax amnesty participation with CSR objectives. Key themes include the role of emerging technologies, ethical decision-making, and the alignment of financial incentives with societal values. By examining these dynamics, the research contributes valuable insights into how businesses can effectively manage the intersection of tax amnesty and CSR, promoting ethical practices and societal well-being.

What you do (not) get when expanding the net-evidence from forced taxpayer registrations in South Africa

A significant share of firms in developing countries is not registered for income taxation. Expanding the tax net is a priority for many governments, but most formalization policies proved relatively ineffective in bringing firms into the tax net. Drawing on rich tax administrative data, we document that snapshot-synchronizations of the business tax and the commercial registry in South Africa led to a large-scale expansion of the South African business taxpayer net. While the targeted firms are a valuable segment within the non-formal sector, we show that their post-registration tax compliance is weak and few of them pay taxes. Owing to the large scope of the tax net expansion, the aggregate revenue gains are, nevertheless, non-negligible and the interventions are fiscally cost-effective. In additional analyses, we provide evidence for enforcement spillovers: In areas where many firms were drawn into the tax net, tax registration timing compliance significantly improved after the snapshot synchronizations. We find no indication of a drop in registration numbers at the commercial registry.

Five Years of Digital Services Taxes in Europe: What Have We Learned?

This article aims to assess whether digital services taxes (DSTs) have been effective in achieving their policy goals as well as identify key unresolved questions and highlight how the evidence from five years of DSTs’ existence in Europe can help in resolving them. The article analyses DSTs’ key policy goals with a particular focus on the equalization of the tax gap and creating fair taxation in the context of a tax incidence. It is based on publicly available data related to introducing five selected DSTs based on the similarity of both their design and the economic situation of the countries in which they were introduced. The collected revenue, fiscal efficiency of these taxes, and taxpayers’ reactions strongly indicate that DSTs have been passed on to small and medium-sized enterprises (SMEs) and consumers to a great extent while yielding negligible revenues that contradicts their policy goals. Due to limitations in data availability and the occurrence of two significant disruptions in the economy during the analysed period, some questions remain unanswered. Therefore, in the context of theoretical economic literature applicable to the case of DSTs, this author indicates where additional in-depth research and governmental analysis of DSTs is necessary and what the possible approaches are to obtain sufficient grounds for political decisions regarding introducing similar measures.

Analysis of the Subjective Elements of Tax Violations from Distribution of the Burden of Proof

Analysis of the Subjective Elements of Tax Violations from Distribution of the Burden of Proof

Exploring the impact of AI-driven and blockchain-enabled tax filing systems on smes in the era of technological innovation: A review of benefits, challenges, and adoption barriers

The emergence of blockchain technology and artificial intelligence (AI) presents transformative opportunities for tax compliance, especially for small and medium-sized enterprises (SMEs). These technologies promise to enhance tax system accuracy, efficiency, and transparency. However, their adoption is accompanied by significant challenges and barriers. This review analyzes the benefits, challenges, and future prospects of integrating AI and blockchain technologies into tax systems, with a focus on their impact on SMEs. It seeks to provide insights into how these technologies can reshape tax compliance and identify areas requiring further research. The review revealed that AI enhances accuracy and compliance through advanced predictive models and explainable AI, while blockchain ensures transparency and trust with its immutable ledger and smart contracts. Despite these benefits, SMEs face technical and financial constraints, such as high implementation costs and integration complexities. Regulatory and legal challenges, including evolving tax laws and data privacy requirements, further complicate adoption. Additionally, resistance to new technologies and skill gaps within SMEs hinder widespread implementation. Scalability and customization issues also pose significant barriers. In conclusion, AI and blockchain technologies substantially improve tax compliance but come with notable challenges. These technologies promise enhanced accuracy and efficiency for SMEs, yet overcoming barriers related to cost, integration, and regulation is essential for successful adoption. It was recommended that future research should focus on developing SME-specific solutions, addressing regulatory adaptations, and conducting comparative analyses of traditional versus AI-driven tax systems. By tackling these areas, stakeholders can better support SMEs in leveraging AI and blockchain technologies for more effective and transparent tax compliance.

Back Duty Audit and Companies Income Tax Compliance in the Federal Capital Territory, Nigeria: The Moderating Role of Tax Officers’ Expertise

Low tax compliance is a serious problem that has continued to ravage the Nigerian tax system which has forced the government to source for an alternative means of financing its budget. To tackle this issue, the government has introduced tax audit to enhance tax compliance. This study examines back duty audit and companies income tax compliance in Nigeria, the moderating role of tax officers’ expertise. The population of the study comprises 304 FIRS staff in the audit department in the Federal Capital Territory, Abuja. Taro Yamane formula was used to determine a sample size of 173. Multiple regression was used to analyze the data and to test the hypotheses of the study with the help of STATA version 13. The result revealed that back duty audit has a positive and significant effect on companies income tax compliance. The moderator, tax officers’ expertise has a positive and significant effect on companies income tax compliance. When the moderator interacted with back duty audit, the result was positive and statistically significant. The study recommended that the FIRS should emphasize more on routine audit because it helps to increase compliance by companies now and in the future. Secondly, the tax officers should constantly reach out to companies’ representatives to help them resolve complexity in the tax laws.

The Effect of Online Tax Payments on Tax Compliance among Large Taxpayers in the North-Rift Region, Kenya

The Effect of Online Tax Payments on Tax Compliance among Large Taxpayers in the North-Rift Region, Kenya

Tax awareness by Sunat and its effects on tax compliance. period 2021 - 2024

Tax awareness by Sunat and its effects on tax compliance. period 2021 - 2024