Tax Filing Research Articles

The Influence of Corporate Governance on Tax Avoidance and The Role of Independent Auditors in Vietnamese Firms

This research addresses how corporate governance mechanisms influence tax avoidance in Vietnamese firms and the role of independent auditors in detecting or mitigating tax avoidance. The purpose of the research is to explore the relationship between corporate governance structures (e.g., independent boards, audit committees) and tax behavior, as well as to assess how auditors interact with these governance mechanisms to ensure tax compliance. A qualitative case study approach was used to analyze six companies from different sectors and governance models (2 state-owned enterprises; 2 family-owned private companies; and 2 publicly listed companies) through 18 interviews conducted between May 2024 and October 2024 with 3 key individuals from each company, including: Independent auditor; Company CEO; Manager or administrator, along with documentary analysis of financial statements and tax filings. The research found that firms with stronger governance (e.g., independent boards and active audit committees) are less likely to engage in tax avoidance, while weak governance structures often lead to more aggressive tax strategies. Independent auditors were more effective in well-governed firms, but faced ethical challenges in weaker ones. These findings are significant because they highlight the importance of strengthening governance frameworks and ensuring auditor independence to reduce tax avoidance and improve corporate transparency in Vietnam.

E-invoicing, tax audits and VAT compliance

Difficult to find another policy shift that has promised as much for tax compliance in developing countries as digitalization. Yet the evidence on its impact is scant. Using the universe of tax filings in Rwanda over the period 2012–2019, this paper investigates the extent to which digitalization (in the form of e-invoicing) has impacted on VAT compliance and in particular the effectiveness of tax audits. The evidence suggests that on the aggregate e-invoicing adoption has increased firms’ net VAT payments and has improved the efficiency of VAT audits. It is also shown that e-invoicing has a sizeable impact on VAT liabilities reported by audited firms, with this impact being attributed to tax audits being more efficient rather than to VAT registered firms becoming more compliant following their adoption of e-invoicing.

Leveraging AI-Driven financial literacy and tax compliance solutions to foster economic growth in underserved communities and small businesses

Underserved communities and small businesses face significant challenges in financial literacy and tax compliance, both of which are critical to economic stability and growth. Limited access to financial education and the complexities of tax systems create barriers that hinder these groups from fully participating in the formal economy. This review explores the potential of leveraging artificial intelligence (AI) to address these challenges by providing innovative solutions that enhance financial literacy and simplify tax compliance. AI-driven platforms can offer personalized financial education, using machine learning algorithms to identify knowledge gaps and provide tailored resources to users. Through gamification and interactive tools, AI can make financial education more engaging and accessible, especially for individuals with limited formal education. Furthermore, AI-powered virtual assistants and chatbots can guide users through essential financial decisions, improving budgeting, credit management, and savings habits. In the realm of tax compliance, AI solutions can automate bookkeeping, tax filings, and other administrative tasks, reducing human error and lowering the compliance burden on small businesses. Predictive analytics can assist in tax planning by forecasting liabilities and helping businesses make informed decisions that minimize tax penalties and maximize cash flow. These advancements empower small businesses and entrepreneurs by enabling better financial management, fostering trust in the financial system, and facilitating access to funding opportunities. By integrating AI-driven financial literacy and tax compliance solutions, underserved communities and small businesses can unlock their economic potential, contributing to broader economic growth and financial inclusion. However, challenges such as data privacy, digital access, and regulatory concerns must be addressed to ensure equitable implementation of these technologies. The review concludes that with careful consideration of these factors, AI can be a powerful catalyst for sustainable economic development. Keywords: Leveraging AI-Driven, Financial Literacy Tax Compliance Small Businesses

ALTERNATIVE WAYS TO MANAGE COOPERATION IN TAX RELATIONS: CHALLENGES OF DIGITALIZATION AND TAX COMPLIANCE

The recent advancements in tax administration have witnessed a significant shift from traditional paper-based reporting to comprehensive digitalization of tax filing and analysis processes. The integration of information and communication technologies into tax relations, alongside the enhancement of tax systems through digital tools—such as electronic registration of tax invoices, electronic reporting, and electronic verification—has streamlined processes and improved tax compliance. However, it remains essential to investigate whether merely transitioning to electronic reporting suffices and to explore alternative management methods for interactions between businesses and regulatory authorities. This article aims to substantiate the patterns of change in tax relations due to the evolution of information technologies and to evaluate alternative options for ensuring the accuracy of tax reporting metrics, which could enhance tax compliance levels. Tax management, a subset of overall management, allows for the assessment and analysis of the impact of the tax environment on business operations amidst uncertainty. The challenges posed by the evolving tax landscape, including legislative volatility and subjective interpretations by regulatory bodies, necessitate a reevaluation of tax management practices. Furthermore, the increasing volume of data enables tax administrations to focus limited resources on addressing serious tax violations. This dynamic calls for a shift towards automation and digitization of accounting practices, paving the way for electronic audits. Despite the progress in electronic administration, the core criterion for tax compliance remains the submission of accurate tax reports and the fulfillment of tax obligations. The article discusses the OECD's recommendations for developing alternative cooperation frameworks between tax authorities and businesses, emphasizing the need for transparency and predictability in tax relations. In conclusion, successful transformation of tax relations between businesses and the state requires more than just electronic reporting; it necessitates a unified source of information for assessing tax risks and ensuring compliance. Ukraine is encouraged to adopt advanced practices for identifying tax risks and facilitating electronic tax audits, thereby enhancing the overall efficacy of tax administration

The effect of the US Child Tax Credit advance payments in 2021 on adolescent mental health: Changes in depression symptoms and suicidality

ObjectiveChild poverty is associated with poor adolescent mental health. Changes to the Child Tax Credit (CTC) in 2021 in the U.S. were historic and introduced a new model of distributing the credit in advance of tax filing, providing families with stable, supplemental monthly income. This policy shift offers a unique opportunity to examine the mental health effects for adolescents. MethodsWe use electronic health record data from a large pediatric primary care network in Columbus, Ohio, which collected adolescent depression screening scores in real time as the CTC advance payments were introduced. We utilized differences in age of eligibility for the CTC to examine the changes in the probability of depression screening outcomes (positive depression screen, any depression symptom, any suicidal ideation), for adolescents eligible for the credit (turned 18 first quarter of 2022), relative to those not eligible (turned 18 last quarter of 2021) (n = 1,423). ResultsWe did not observe a significant association between the policy change and study outcomes in the overall sample. However, the percentage of adolescents with a positive depression screen significantly declined for Non-Hispanic Black (13.4 percentage point reduction, p = 0.01) and publicly insured (9.7 percentage point reduction, p = 0.04) adolescents. ConclusionsOur findings suggest reductions in depression symptoms for subgroups of adolescents who were age-eligible for the CTC compared to their counterparts who were not eligible. The CTC advance payments were a brief experiment in universal basic income and may offer a policy solution for addressing both poverty and a growing adolescent mental health crisis.

Between cities and villages: the livestock economy in historical Palestine

This study aims at establishing a historically based model of animal husbandry in urban and rural settlements, in the Southern Levant. This type of model is required in the field of zooarchaeology, to better analyze and study ancient faunal remains. It also applies a non-traditional method to study and differentiate between urban and rural economies. For this aim, we used British Mandate tax files and village statistics. These are the best available historical documents for this period, that recorded herds management statistics in all settlements of Palestine. We selected only settlements inhabited by the indigenous population and divided the data into four environmental regions. We analyzed the livestock abundance and herd demography in each region. Each urban center was considered independently, while the rural villages were classified into three groups, based on the most common livestock (cattle, sheep, or goats). Results show economic variations between urban and rural settlements as well as regional trends, such as in pastoralism and agricultural management. In addition, meat industries were common in most urban centers, being the primary difference from rural economies. We applied this model to two large zooarchaeological case studies, dating from the Early Islamic to the Ottoman period; Mount Zion, located in the urban city of Jerusalem, and Tel Beth Shemesh (East), whose size and nature were not historically recorded. We found that the economic variations reflected in the model were also present in the faunal assemblages.

The Impact of Family Tax Benefits on Children’s Health and Educational Outcomes

We leverage recent income support reforms for families with children in Canada to investigate the impact of child benefits on child health and educational outcomes. Using administrative school data from British Columbia linked to parents' tax files, we find evidence that increased family benefit generosity improved children's mental health, but little evidence of any change in test scores from standardized exams. Our results suggest that most of the mental health effect is concentrated among girls and that relative improvements in mental health were larger among children in higher-income families.

Fill in the Blank? A Discussion of Prefilled Tax Returns in the U.S.

ABSTRACT The U.S. tax system imposes a substantial cost of preparation on individual taxpayers. Prefilled tax returns, in which the government prepares tax returns and provides them to taxpayers for any necessary revisions or approvals, would fundamentally overhaul this practice. Such a program has long been debated in the U.S., including multiple recent legislative proposals of a “Tax Filing Simplification Act.” In this paper, we consider a prefilled tax return system for the U.S., concluding that it offers the opportunity to improve the tax filing experience of many Americans by reducing their involvement in an activity widely perceived as unpleasant. However, effective implementation will require careful design. We draw on the implementation and design of programs in other developed countries, along with relevant academic research, to provide insight into the potential design of a prefilled tax return program in the U.S.

Understanding Transparency Practices in Private Foundations

Despite the increasing attention to transparency among academics and practitioners, researchers face a significant challenge in gaining access to foundation information, which limits their ability to study foundation transparency. This research aims to advance our understanding of foundation transparency by exploring various dimensions of transparency, including public visibility, information disclosure, external relational activities, reporting quality, and the timeliness of information. The study uses IRS Form 990-PF e-file datasets from 2011 to 2016, as well as information collected from foundation websites. Foundations with websites were coded using content analysis, and a transparency index was constructed through principal factor analysis. The findings indicate that only around one percent of foundations maintain a website, and publicly available information is skewed towards administrative information with a lack of financial information and information on external relations-building activities. Additionally, the average time taken to file after the tax deadline was approximately four months, and tax filings were found to have reporting quality issues.

Tax Education and Income Tax Filing Compliance among Small Taxpayers in Mbarara City

Purpose: This study aimed at establishing the relationship between tax education and income tax filing compliance among small taxpayers in Mbarara city. The study was driven by the fact that despite Uganda Revenue Authority’s efforts to improve tax compliance, income tax filing compliance is still low among small taxpayers in Uganda in general and Mbarara city in particular.
 Materials and Methods: A cross-sectional study design was used to collect data from 33,979 small taxpayers in Mbarara city out of which 31,324 were individual taxpayers while 2,655 were non-individual taxpayers. The sample size included 380 respondents out of which 350 were individual taxpayers while 30 were non-individual taxpayers. Systematic random sampling was used to select respondents from each of the six divisions of Mbarara city. Data was analyzed using SPSS version 26.0 where correlation coefficients were generated and presented in a table.
 Findings: The correlation analysis revealed that tax education was positively and significantly related to taxpayers’ income tax filing compliance (r=.631, p<0.05). Based on the findings, the study concludes that tax education plays a crucial role in improving income tax filing compliance among small taxpayers.
 Implications to Theory, Practice and Policy: The study recommends a need for the government and tax authorities, in this case, Uganda Revenue Authority to put in place strategies and programs aimed at improving awareness about income tax filing. Some of these strategies include intensifying tax education and outreach services of the mobile tax office ‘Tujenge Bus Services’ to all locations; introducing basic tax education at earlier stages of formal education such that citizens are informed about their future obligations to file income tax returns; translating all information about income tax filing in different local languages and publishing the same in print format for easy understanding. The study contributed significantly to the Theory of Reasoned Action by highlighting the role of education and sensitization in increasing taxpayer awareness about tax and improving voluntary income tax filing compliance. This will help the government to put in place policies that should be implemented by Uganda Revenue Authority to improve income tax filing compliance.

The Mediating Effect of Taxpayer Perception in the Relationship between Tax Education and Income Tax Filing Compliance among Small Taxpayers in Mbarara City

Purpose: This study is about establishing the mediating role of taxpayer perception in the relationship between tax education and income tax filing compliance among small taxpayers in Mbarara city.
 Materials and Methods: The study used cross-sectional research design on a study population of 33,979 small taxpayers with a sample size of 380 respondents in Mbarara city. Systematic random sampling was used to select respondents while data was collected using a questionnaire tool whose validity (Content Validity Index) and reliability (Cronbach’s Alpha) were ascertained before data collection and found to be above 0.70. The collected data was analyzed with the aid of SPSS version 26.0 to generate regression coefficients which were exported to an Online Medgraph Calculator to determine mediation effect, significance and path analysis. 
 Findings: The regression analysis results revealed that taxpayer perception had a significant partial mediating effect (βmd=.366, p<0.05) on the relationship between tax education and income tax filing compliance among small taxpayers in Mbarara city. Based on the findings, the study concludes that efforts aimed at improving taxpayer perceptions play a significant role in strengthening the relationship between tax and income tax filing compliance.
 Implications to Theory, Practice and Policy: The study recommends a need for the government and tax authorities, in this case, Uganda Revenue Authority to put in place strategies and programs aimed at changing individual perceptions, social understanding and personal motivations regarding income tax filing. Some of these strategies include intensifying tax education and outreach services of the mobile tax office ‘Tujenge Bus Services’ to all locations; introducing basic tax education at earlier stages of formal education such that citizens are informed about their future obligations to file income tax returns; translating all information about income tax filing in different local languages and publishing the same in print format for public access at no cost; and recruiting more tax agents within Mbarara city who can assist small taxpayers in income tax filing at a reasonable fee. The assumptions of the Theory of Reasoned Action, Social Influence Theory and Motivational Posturing Theory could also be relevant in assisting the tax authorities to change the personal and societal perceptions about income tax filing and motivate them to willingly comply with their filing obligations. The study has significant implications for policy making as it identifies a need for government and tax authorities to establish policies and offer incentives and motivational postures that prioritize voluntary compliance rather than introducing sanctions to enforce income tax filing compliance.

Taxpayer Perception and Income Tax Filing Compliance among Small Taxpayers in Mbarara City

Purpose: This study is about establishing the relationship between taxpayer perception and income tax filing compliance among small taxpayers in Mbarara city. The study is driven by the fact that despite Uganda Revenue Authority’s efforts to improve tax compliance, income tax filing compliance is still low among small taxpayers in Uganda in general and Mbarara city in particular.
 Materials and Methods: A cross-sectional study design was used to collect data from 33,979 small taxpayers in Mbarara city out of which 31,324 were individual taxpayers while 2,655 were non-individual taxpayers. The sample size included 380 respondents out of which 350 were individual taxpayers while 30 were non-individual taxpayers. Systematic random sampling was used to select respondents from each of the six divisions of Mbarara city. A questionnaire method was employed in data collection where self-administered 5-point Likert type questionnaire with a Content Validity Index (CVI) of .91 and a Cronbach’s alpha (α) of .86 was used in data collection. Data was analyzed using SPSS version 26.0 where correlation coefficients were generated and presented in a table.
 Findings: Results from the correlation analysis revealed that taxpayer perception was positively and significantly related to income tax filing compliance (r=.715**, p<0.05). The study concludes that efforts aimed at improving taxpayer perceptions play a significant role in improving income tax filing compliance.
 Implications to Theory, Practice and Policy: The study recommends a need for the government and tax authorities, in this case, Uganda Revenue Authority to put in place strategies and programs aimed at changing individual perceptions, social understanding and personal motivations regarding income tax filing. Some of these strategies include intensifying tax education and outreach services of the mobile tax office ‘Tujenge Bus Services’ to all locations; introducing basic tax education at earlier stages of formal education such that citizens are informed about their future obligations to file income tax returns; translating all information about income tax filing in different local languages and publishing the same in print format for public access at no cost; and recruiting more tax agents within Mbarara city who can assist small taxpayers in income tax filing at a reasonable fee. The assumptions of the Motivational Posturing Theory could also be relevant in assisting the tax authorities to change the personal and societal perceptions about income tax filing and motivate them to willingly comply with their filing obligations. The study has significant implications for policy making as it identifies a need for government and tax authorities to establish policies and offer incentives and motivational postures that prioritize voluntary compliance rather than introducing sanctions to enforce income tax filing compliance.

How to improve tax compliance by wealthy individuals? Evidence from Uganda

AbstractMotivationAppropriately taxing the richest is a priority for African governments, which need tax revenues to invest and pay for public services. In Uganda, the revenue authority launched a unit in 2015 to monitor the tax affairs of high‐net‐worth individuals (HNWIs) and very important persons (VIPs), 393 individuals in all. The unit combined persuasion, assistance, and enforcement.PurposeTo establish the extent to which the unit was able to improve tax compliance by the rich.Methods and approachIn collaboration with the Uganda Revenue Authority, this study builds on taxpayer‐level data on tax filing and payment. The analysis employs a standard difference‐in‐difference framework, exploiting the timing of the launch of the unit (September 2015). It also makes use of the existence of the target group of 393 wealthy individuals and a group of another 1,731 potentially wealthy individuals who have been identified but never included in the unit's operations owing to limited resources. We match the groups using a propensity score algorithm.FindingsThe unit has been only partially successful. While the unit increased the probability of filing a return, especially by VIPs, taxpayers declared less on different measures, with no impacts on tax liability. On tax payments, only a small and significant positive impact was found, again due to complex offsetting responses across tax categories. This study also measures the spillover effect on companies controlled by the richest—again documenting complex compensating reactions and no meaningful impacts on tax take. Lastly, while deterrence is more effective for HNWIs, taxpayer assistance and public shaming are more relevant for VIPs.Policy implicationsThis case shows that the rich can be identified and their tax monitored. It also shows the limits of what can be achieved. The Uganda unit lacked staff; it needed twice as many people to monitor the tax of wealthy persons adequately. Moreover, it was hamstrung by the difficulties of sharing data between different departments of the Tax Authority, among government agencies, and between government and key agents such as banks. Ultimately, the unit did not have the staff and data to challenge the tax avoidance schemes deployed by wealthy people and the companies they own.

The Concentration of Personal Wealth in Italy 1995–2016

Abstract We estimate the distribution of wealth in Italy between 1995 and 2016 using a novel source of inheritance tax files, combined with surveys and national accounts. We find that the level of wealth concentration is in line with other European countries; however, its time trend appears more in line with the US, showing a significant increase over the period studied. The country exhibits one of the greatest declines in the wealth share of the bottom 50%. The paper also shows that age plays a marginal role in explaining wealth concentration. Changes in savings, instead, are the predominant force behind the increase in wealth inequality, even at the top. Equity prices also account for a large share of wealth growth above the 99th percentile, whereas changes in house prices play only a minor role. Finally, we document the growing concentration of life-time wealth transfers, and their increasingly favorable tax treatment.

The Impact of Incarceration on Employment, Earnings, and Tax Filing

The Impact of Incarceration on Employment, Earnings, and Tax Filing

Factors Influencing Taxpayers’ Intention to Use Online Tax Filing System (E-Filing): A Study of Indonesian Taxpayers

Factors Influencing Taxpayers’ Intention to Use Online Tax Filing System (E-Filing): A Study of Indonesian Taxpayers

LEGAL AND TECHNICAL PROBLEMS OF DIGITISING THE MOROCCAN TAX SYSTEM

Most of the economic, social and environmental reforms envisaged by countries attach crucial importance to the information revolution, which has become the major challenge of our time. Most nations are embracing it wholeheartedly, including Morocco, which has introduced a new tax reform plan with the enactment of Framework Law 19.69. This plan focuses on digitising and strengthening administrative services by relying on electronic media, which have become a pressing necessity in all Moroccan administrations. Electronic filing and electronic enforcement of all taxes are the main objective of the tax services. The 2020 pandemic has played a fundamental role in accelerating the adoption of digitisation, offering an alternative to physical interactions in various locations such as administrative departments, public institutions, markets, and others. However, this development has raised a number of tax and legal issues, particularly in terms of the technology used for electronic tax filing and payment. These changes have also had an impact on the worlds tax systems, some of which are unable to keep pace with these advances. In addition, the emergence of e-commerce has added further complexity, particularly in terms of taxation and the challenges faced with social influencers generating significant revenues. Thus, the increasing adoption of electronic means in the tax field has raised legal and technical issues related to electronic tax filing and enforcement, just as e-commerce has become a major pillar of the global economic fabric, creating its own legal and technical challenges.

A conceptual model for standardized taxation of SMES in Nigeria: Addressing multiple taxation

Nigeria's small and medium-sized enterprises (SMEs) face significant challenges due to the complex and fragmented taxation system, which often results in multiple taxation and administrative burdens. This paper presents a conceptual model for standardized taxation aimed at addressing these issues and fostering a more efficient tax environment for SMEs. The proposed model seeks to streamline tax policies, reduce the incidence of multiple taxation, and enhance compliance through a unified framework. The model emphasizes the need for harmonizing tax regulations across federal, state, and local levels to eliminate inconsistencies and overlapping tax obligations. By implementing clear and consistent tax guidelines, the model aims to simplify the tax compliance process for SMEs and reduce the risk of double taxation. Additionally, the model proposes the introduction of a centralized digital platform to manage tax filings, payments, and documentation, which will improve efficiency and transparency in the taxation process. A critical component of the model is the establishment of standardized tax incentives and reliefs tailored to the needs of SMEs. These incentives are designed to encourage growth and investment while mitigating the negative impacts of excessive taxation. Furthermore, the model advocates for regular stakeholder engagement, including consultations with SMEs, tax authorities, and policymakers, to ensure that the tax policies are practical and effective. The expected outcomes of implementing this standardized taxation model include improved tax compliance, reduced administrative costs for SMEs, and a more transparent and predictable tax environment. By addressing the issues of multiple taxation and providing targeted support, the model aims to enhance the overall business climate for SMEs in Nigeria, contributing to economic growth and development.

Analisis Dampak Sistem Penilaian Diri Dan Pemeriksaan Pajak Terhadap Penerimaan Pajak Penjualan (PPN) Di Kantor Pajak Pratama Mulyorejo

The state's contribution from taxes amounts to 85%, indicating the dominant role of taxes in significantly contributing to the state's finances. This research aims to examine the influence of the self-assessment system and tax audits on the Value Added Tax (VAT) revenue. The self-assessment system emphasizes the active role of taxpayers in fulfilling their tax obligations; however, the potential for taxpayer non-compliance may negatively impact tax revenue. Therefore, tax audits are essential to balance the implementation of the self-assessment system and ensure that the filing of Tax Returns (SPT) aligns with the conditions of the taxable objects. This study employs a quantitative method with descriptive analysis. Data analysis involves multiple linear regression and testing classical assumptions such as multicollinearity, autocorrelation, normality, and heteroskedasticity. Hypothesis testing is conducted using t-tests and F-tests with the assistance of SPSS 22. A sample of 36 respondents was selected based on specific criteria, and secondary data were obtained from the Mulyorejo Primary Tax Office in the form of documents. The research findings indicate that simultaneously, the self-assessment system and tax audits do not significantly influence VAT revenue in the Mulyorejo Primary Tax Office during the period of 2020-2022. The implication is that while the active role of taxpayers and tax audits has potential impacts, their simultaneous implementation does not significantly contribute to the increased Value Added Tax revenue in the region.

Tracing the effect of the paycheck protection program on nonprofit capacity to sustain payroll and services during COVID‐19

AbstractThis study explores the effect of government fiscal stimulus on nonprofit performance during the COVID‐19 pandemic. More specifically, it investigates whether access to the Paycheck Protection Program (PPP) increased the ability of nonprofit organizations operating in the crisis context conditions to continue supplying funds for payroll and maintain effective delivery of services and programs after the initial revenue shock. The study findings are derived from the analysis of survey data collected from 160 Wisconsin nonprofit organizations in July and August 2020 linked to publicly available Internal Revenue Service tax filings. Regression analysis reveals a strong positive connection between the PPP loans and the nonprofit capacity to continue funding payroll and providing services within the next months of the pandemic. The empirical results suggest that the government stimulus policies offering direct economic assistance can indeed contribute to the continuity of nonprofit services and payroll in times of fiscal uncertainty, albeit the policy may not yield equally significant results across all types of organizations. This study increases the understanding of nonprofit performance during an extended revenue crisis, offering answers to policymakers, researchers, and practitioners interested in learning more about the efficacy of federal stimulus funding in enabling private organizations to mitigate the financial consequences of the COVID‐19 crisis.