Voluntary Compliance Research Articles

Trust in Religious Leaders and Voluntary Compliance: Lessons from Social Distancing during COVID‐19 in Central Asia

AbstractWhat is the relationship between trust in religious leaders and compliance with policies that are costly to the individual? Religious leaders often have the moral authority to affect individuals’ willingness to adopt prosocial behaviors. Yet, that influence can be either positive or negative because religious leaders face mixed incentives to encourage compliance and their leadership is often decentralized. We argue that greater trust in religious leaders will increase compliance in countries with a dominant religion and centralized religious authority because religious leaders will offer a coherent message that aligns with state directives. We test our hypotheses using data from surveys fielded in Kazakhstan and Kyrgyzstan during the COVID‐19 pandemic. We find a positive and significant relationship between trust and voluntary compliance only in Kazakhstan, where religious leaders reduced the costs of compliance by enabling adherents to practice their faith while social distancing. We thus identify an alternative mechanism whereby trust promotes compliance.

A Study of Trust Base Voluntary Tax Compliance through Tax Administration Digital Transformation in Indonesia

Over the last decade, Indonesian Tax Authority, DGT (Directorate General of Taxes) has introduced digital transformations on tax administration as a part of Tax Reform in Indonesia. These practices were done to improve taxpayer trust and tax compliance. The objective of this study is to look into the relationship between tax administrations’ digital transformation on trust, as well as taxpayers’ tax compliance decisions. We emphasized on Indonesian taxpayers’ perceptions of fairness and voluntary tax compliance following the digital transformation of tax administrations. An online questionnaire was distributed as part of this study’s survey approach. To collect samples from all throughout Indonesia, the online survey used a Google form. Indonesian taxpayers were used as the study’s population. A simple random sample strategy was used in this study. Structural equation modelling (SEM) was utilized to examine the collected data. The result was that tax administration’s digital transformation has a positive impact on voluntary tax compliance.

Determinants of voluntary compliance: COVID-19 mitigation

During the pre-vaccine period, the success of containing the spread of COVID-19 depends upon how communities respond to non-pharmaceutical mitigation policies such as social distancing, wearing of masks, retail and dining constraints, crowd limitation, and shelter-in-place orders. Of these policies, shelter-in-place and social distancing are of central importance. By using county-level mobility data as a measure of a community's voluntary compliance with social distancing policies, this study found that counties who received strong state social distancing policy directives and who had a high pro-social character showed lower mobility on retail and recreation mobility and grocery and pharmacy mobility (better social distancing) after states reopened from shelter-in-place orders. Counties that experienced a longer duration of shelter-in-place orders showed higher mobility (less social distancing), implying that the duration of the shelter-in-place order deteriorated social distancing response after reopening. This may be because reopening sent a “safe” signal to these counties or resulted in a response to the pent-up demand inducing higher mobility. The results indicate that implementing shelter-in-place and social distancing policies to slow down the transmission of COVID-19 were not necessarily effective in motivating a county to reduce mobility voluntarily. A county's pro-social character and the duration of shelter-in-place order should be considered when designing COVID-19 mitigation policies.

Managers and shorebird biologists' perceptions of enforcement and voluntary compliance techniques to increase compliance with dog regulations on beaches

Abstract Disturbance to shorebirds by domestic dogs can cause direct and indirect bird mortality. Dog regulations to minimize disturbance are only effective if people comply with them. Non‐compliance is a universal problem in biodiversity conservation, with an associated body of applicable social science from the field of conservation criminology. We apply the lens of this literature to better understand non‐compliance with dog regulations on beaches along the Atlantic Flyway of the U.S. and the role of law enforcement and voluntary compliance techniques (e.g. persuasive communications, behavioural alternatives) in fostering compliance. Through in‐depth interviews with 27 land managers and shorebird biologists experienced in creating and/or implementing regulations to reduce disturbance to shorebirds, we found that non‐compliance is a challenge that law enforcement alone is inadequate to address. Managers are working to overcome these challenges with law enforcement through training law enforcement officers, as well as voluntary compliance approaches, such as conducting on‐site stewardship programs led largely by volunteers, placing educational signage at sites, and highlighting alternative areas to walk dogs. The early stages of the COVID‐19 pandemic in the U.S. increased dog walking on beaches and exacerbated the issue of non‐compliance and lack of enforcement, while the capacity for educational and stewardship programs was also limited. We conclude by recommending that managers and biologists tackle non‐compliance with multiple and concurrent strategies along a spectrum from enforcement to voluntary compliance techniques, while also better studying the efficacy of these approaches. We also highlight the importance of continuing to track the ongoing challenges to compliance with biodiversity conservation regulations due to the COVID‐19 pandemic. Read the free Plain Language Summary for this article on the Journal blog.

Understanding the Effect of Government Attitudes on Voluntary Tax Compliance in Nigeria

An effective government’s performance is indicated by; high levels of efficiency, bureaucratic quality, the rule of law and the fight against corruption. This paper aimed to examine the effect of government attitudes on voluntary tax compliance in Nigeria. The study distributed 384 questionnaires to self-employed taxpayers in Nigeria, out of which 296 questionnaires were successfully returned. An analysis was conducted incorporating structural equation modelling using the SmartPLS 3.3 software application 3.3 to derive the measurement and structural model of the analysed result. The results showed that government effectiveness positively and significantly affected voluntary tax compliance. Additionally, the findings revealed a positive and significant effect between tax authority transparency and voluntary tax compliance. Further findings showed that government attitude was positively and significantly related to voluntary tax compliance. Therefore, the present study recommends that the government improve its attitudes toward efficiency and transparency in tax and governance to improve voluntary taxpayer compliance with Nigeria's tax authorities.

Does pro-sociality or trust better predict staying home behavior during the Covid-19?

Voluntary compliance of preventive and mitigation measures due to social concerns can play a crucial role in slowing down the spread of the Covid-19. The existing economic models for disease spread however do not direct a lot of focus on the possible role of pro-social behavior and general trust in predicting preventive behaviors amid the Covid-19. Therefore, this study analyzes whether pro-sociality and general trust measured in the short run (2020 and 2019) and in the long run (2015 and 2010) predict attitudes towards the stay home behavior and the intended stay home behavior in case the government mandates it due to the Covid-19 in the Netherlands. The results suggest that these preferences positively influence attitudes towards staying home behavior. However, trust in comparison to pro-sociality is a stable and robust predictor of stay home attitudes both in the short as well as long run. On the other hand, neither trust nor pro-sociality influences the intended stay home behavior in case the government mandates the lockdown, and it is most likely due to the timing of the survey coinciding with a significant drop in the Covid-19 infections and easing out of the lockdown restrictions by the Dutch government.

PERAN NORMA DAN SANKSI TERHADAP PENINGKATAN KEPATUHAN PAJAK SUKARELA DAN PAKSAAN

The problem that is being faced by the Indonesian government is due to the unfulfilled target of state revenue originating from taxes in recent years, making voluntary tax compliance and compulsory tax compliance interesting for research. The current theory development in the field of tax compliance views social-psychology variables as important as deterrence variables. This study analyzes the influence, personal norms, social norms, national norms, and sanctions on voluntary and coercive compliance. The population used in this study is an individual taxpayer who does independent work in the South Jakarta area. The type of data used in this research is primary data. The data used in the study were obtained by distributing questionnaires directly to respondents. The research data to be analyzed using SEM PLS analysis tools. The results showed that personal norms and social norms had a positive effect on voluntary compliance, social norms and national norms had no effect on compulsion compliance, national norms had a negative effect on compulsion compliance, sanctions had no effect on voluntary compliance and coercive compliance

WHAT KENYA’S TAX POLICY MEANS FOR SMEs BUSINESSES?

This study seeks to review Kenya's first National Tax Policy to examine whether it addresses issues that would galvanize the SME sector into formalization and tax compliance, as well as promote the growth and development of the sector. Research for the paper involved a desktop study of existing taxation legislation, expert reports, as well as SME sector strategic plans and reports published by government agencies. The focus of the study is the impact of taxation on small businesses in Kenya along four thematic areas that are central to the SME development agenda: (1) rebuilding the economy; (2) expansion to hard-to-tax sectors; (3) inclusion of innovative and other emerging sectors; and (4) driving up compliance. Study results show that while the Policy captures key issues inhibiting taxation of SMEs, it is not explicit in proffering actionable information that business owners can use to inform voluntary compliance options. The study also found that small businesses are reeling from economic hardships and require concessions to surmount their challenges. The research findings suggest that there is scanty information on SME businesses, and the government is looking into leveraging County-based licensing activities to collect primary data useful for the development of taxation policies.

STRATEGIES FOR IMPROVING THE TAX ENVIRONMENT THROUGH INSTITUTIONAL MODERNIZATION

The basic task of a modern tax institution is to develop relationships with the business environment by improving the tax environment. Equidistant, fair and equitable treatment will help increase taxpayers’ confidence in this institution. In order to accomplish this task, the state tax administration body must be in a permanent process of modernization and institutional change, implementing strategies at the level of development programs, voluntary compliance, prevention and combating tax evasion, adoption of digital solutions. The study carried out by the author has set out as a task to address the issue of institutional modernization by improving the fiscal environment, thereby contributing to increasing the confidence of the business environment towards this institution. The scientific approach started from the idea of reconciling the interests of the State Tax Service with those of the business environment, in order to maintain a constructive and mutually beneficial dialogue on tax administration.

THE EFFECT OF ETHICAL CLIMATE, ORGANIZATIONAL CULTURE, ON ORGANIZATIONAL PERFORMANCE IN TAX SERVICE OFFICES MEDIATED BY STRATEGIC SERVICE MANAGEMENT

The purpose of this study is to change the duties and functions of the Tax Service Office as part of the strategic plan of the Director General of Taxes 2020-2024 to increase the effectiveness of tax compliance supervision. Changes in the duties and functions of the Tax Service Office are aimed at expanding the tax base which is the main mission of the Director General of Taxes in order to increase tax revenues. in an effort to increase voluntary compliance, regarding the 3C (Click, Call and Counter). that the increase in service automation will reduce the administration cost of taxpayers.The method of analysis is done through explanatory research, with the application of PLS/SEM. Concepts and problems under study look at causality, then explain the variables causing the problem under study. The research sample was 121 at the Center for the Ministry of State Finance as Supervisors, as well as Officials and Heads of the Jakarta Capital Special Regional Tax Service Office.The results of this study Ethical Climate has a positive effect on Strategic Service Management and has a positive effect on Organizational Performance. Organizational Culture has a positive effect on Organizational Performance. illustrates that Ethical Climate, Organizational Culture in the Strategic Service Management of the Special Capital Region of Jakarta Tax Service Office. Theoretical implications of the existence of Strategic Service Management through increasing its dimensions will be able to improve the Organizational Performance of the Jakarta Capital Special Region Tax Service Office so as to increase the trust and loyalty of related parties. Ethical Climate, Organizational Culture The results of this study strengthen the positive and significant influence of Ethical Climate, Organizational on Strategic Service Management. Improvement and development of the quality of human resources must first, pay attention to service and strategy. The development will give a good indication of the Organizational Performance of the Jakarta Capital Special Regional Tax Service Office.

The Impact of Non-Economic Factors on Voluntary Tax Compliance Behavior: A Case Study of Small and Medium Enterprises in Vietnam

One of the main reasons governments of developing countries, including Vietnam, face many difficulties in tax collection is taxpayers’ non-compliance with taxes. Therefore, the question for the governments of these countries is how to encourage taxpayers to comply voluntarily without having to resort to mandatory measures. This study examines non-economic factors affecting the voluntary tax compliance behavior of small and medium enterprises (SMEs) in Vietnam. The data used in the study were collected from the survey results of 339 tax accountants and managers at SMEs in some provinces and cities in Vietnam. The study data were processed with the statistical software SPSS 20 to test for Cronbach’s alpha, exploratory factor analysis, and linear regression analysis. The research results show that the possibility of tax inspection and audit, social norms, tax knowledge, personal norms, perception of the tax system’s fairness, and tax service quality has a significant influence on the voluntary tax compliance behavior of SMEs in Vietnam; of which, the possibility of tax inspection and audit has the strongest impact, and tax services quality has the weakest effect on the voluntary tax compliance behavior of these enterprises.

Harmonization of Tax Regulations through the Omnibus Law in Realizing Bali MSME Business Stability

The government continues to make efforts regarding the national economic recovery after the COVID-19 pandemic, especially for MSME entrepreneurs. One of them is through Omnibus law namely laws that focus on simplifying the number of regulations due to their nature of revising and repealing many laws. Harmonization of the Taxation Law in relation to MSME business includes General Provisions and Tax Procedures, Income Tax and Value Added Tax, with the aim of increasing economic growth and recovery, optimizing state revenues, simplifying rules, justice, certainty laws and improve taxpayer voluntary compliance. The purpose of this study is to provide input to: 1) the Bali Regional Tax Office regarding the recovery of Bali MSME businesses due to the covid pandemic so that taxpayers can recover their businesses. 2) Obtain empirical evidence of the effect of HPP cluster KUP and income tax on the stability of MSMEs in Bali. Novelty research is a touch of tax exemption for MSMEs with a turnover of up to 500 million. The expected finding is that DGT Bali will focus on business recovery and empowering MSMEs. This study uses primary data from interviews with SMEs. The analysis technique was carried out by using triangulation analysis. The results showed that the HPP of the KUP Cluster had an insignificant negative effect on the business stability of MSMEs in Bali, while the HPP of the Income Tax Cluster had a significant negative effect on the business stability of MSMEs.

Understanding visitor awareness and knowledge of marine parks: Insights from the Ningaloo Coast, Australia

Marine Protected Areas (MPAs) are a key policy instrument used for the protection of ocean and coastal environments. However, many MPAs are currently falling short of their intended objectives. Studies show that meaningful public engagement can assist in optimising the outcomes of an MPA by improving stakeholder knowledge, support, and social license, and thus improving voluntary compliance with local MPA regulations. Ensuring more meaningful engagement, however, requires a context specific understanding of how different stakeholder groups understand the MPA, how they acquire that knowledge, and how information delivery can be tailored more effectively to reach the target audience. To that end, this study employed a quantitative survey to explore stakeholder awareness and knowledge of the Ningaloo Marine Park (NMP), a multi-use marine park on the west Australian coastline. Specifically, we surveyed visitors (i.e., tourists) to the Ningaloo region to understand their awareness of the NMP, their knowledge of the marine zoning regulations, and their access to information (N = 169). Results suggest that visitors to the region exhibit low levels of awareness of the primary management bodies, and of the presence of zoning regulations in the NMP. There was also a significant gap in the perceived level of protection afforded by the NMP compared to the actual protection, with visitors believing that the MPA provides more protection of the marine environment than it does in practice. These findings highlight a need for future regional communication strategies to be focused on improving the overall awareness and knowledge of the NMP among visitors through clear, consistent and accessible information. Specifically, visitors indicated that moving forwards, they would like to access this information through visitor centres, on local signage and on websites. The results of this study provide valuable insights for local marine park managers and decision-makers to improve existing communication strategies in order to maximise the ecological, social and economic outcomes of the NMP. These insights also have a wider application for improving ongoing public engagement with MPAs globally, which is particularly important given the rapid designation of MPAs to meet the global target of 30% of global oceans protected by 2030.

The Relationship of Trust in Authority, Procedural Fairness, and Tax Policy Reform on Voluntary Compliance during the Covid-19 Pandemic in Malaysia

The COVID-19 pandemic which occurred in early 2020 is the most concerning topic around the world. Without a doubt, Covid-19 has badly given implications for social, economic, and political aspects of most nations which also impacted global human lives. In Malaysia, it is proven that Covid-19 has mainly caused business activities due to the travel restrictions and border closures such as Movement Control Order (MCO) which is also implemented around the globe. This significant impact on the economy eventually included the tax sector. Tax as the main source of government revenue is crucial to fund crisis response and recovery, in addition to balancing the government’s effort in rebuilding Malaysia’s fiscal resilience while maintaining its social responsibilities. The condition of taxpayers during this pandemic period also affects the fulfillment of their tax obligation and will give an impact on the country's revenue. This article is an early study to examine the effect of trust in authority, procedural fairness, and tax policy reform on the voluntary compliance response to Covid-19 in Malaysia. Understanding the level of trust in authority, procedural fairness, and tax policy reform is essential to improve tax voluntary compliance. Hence, helps to understand that voluntary compliance facilitates enhancing a viable source of funding for the government.

An Analysis of Firm Complexity and Tax Aggressiveness of Listed Deposit Money Banks in Nigeria and South Africa

The study examined the influence of firm complexity on tax aggressiveness of Listed Deposit Money Banks in Nigeria and South Africa. The study employed the longitudinal research design in a cross-country comparative analysis approach. The sample size consists of an equal sample of the 13 listed deposit money banks quoted on the Nigerian Exchange Group (NGX) and 13 listed deposit money banks quoted on the Johannesburg Stock Exchange, South Africa. Secondary data was used for the study as extracted from the annual reports and financial statements of the selected banks for a nine-year period of 2012-2020. The panel data were analyzed using a descriptive statistic, correlation and panel data regression technique which was dually estimated to capture the samples of both countries. The outcome of the Nigerian model showed that firm complexity asserted significant negative impacts on tax aggressiveness in Nigeria, and in model ii, it showed that firm complexity has an insignificant negative impact on tax aggressiveness in South Africa. The study recommends, among others, that the notion that highly diversified banks engaged in less tax aggression was upheld in the Nigerian sample. Since most diversified Nigerian companies had subsidiaries and cross-border affiliations with South Africa, there is a need for both governments to simplify the tax laws and focus more on creating a tax culture in order to foster voluntary compliance among multinationals.

Determinants of Tax Compliance among Small and Medium Enterprises in Tanzania: Insights from Ilala Municipality

This study investigated on Determinant of tax compliance among Small and Medium Enterprises in Tanzania specifically Ilala municipality, Particular objectives included evaluating the influence of economic factors and taxpayer personal demographics on tax compliance. The descriptive cross-sectional survey design and quantitative research approach were used in the current study. The study's population consisted of 5324 Small and Medium Enterprises from Ilala Municipality, from where a random sample of 98 respondents was drawn. Structured questionnaires were used to collect data, which was then analyzed using The Multiple Linear Regression, which provided a comprehensive proof that helped to answer the research questions. The study's findings demonstrated a positive and statistically significant association between the study independent variables and the dependent variable. Taxpayer, economic, and institutional factors all influence taxpayers' willingness to engage in tax evasion, according to the regression analysis. Study findings reveal that all taxpayer predictors, including economic and institutional factors, have a significant impact on tax compliance since all have mean of above 3.0. Furthermore, regression analysis supports the findings, since all three factors were found to have a significant impact on tax compliance, with p-values less than the 0.05 cutoff limit. The study concludes Tax morality can help increase voluntary tax compliance on the country through this taxpayer will have a positive perception toward government spending. Maintaining tax fairness, appropriate and moderate levels of penalty, and keeping tax rates as low as possible can all foster taxpayers' voluntary compliance. Fairness in the execution of tax regulations should be enshrined, and tough measures to combat tax revenue corruption should be implemented.

Food Security and Safety in India

Abstract Let food be your medicine, instead of your medicine being your food. Hippocrates Food is indeed a way of distributing risks, causing sickness and death, and a means of sustaining and enjoying life. Infections caused by contaminated food are the most common transmissible medical problem in the globe. Food contamination has economic consequences at all levels of society. Disease caused by consuming contaminated food results in the need for care, whether it be institutionalized or self-care, on an individual and group level. Income is missed due to illness, which is extremely difficult on breadwinners. Foodborne disease is the most dangerous side effect, and it can even be fatal. It's also severe, with serious socioeconomic and psychological consequences. Despite an increase in the occurrence of foodborne illness, many public health officials fail to acknowledge the worldwide significance of foodborne illness. Changes that directly influence sanitation and the human environment, on the other hand, will pose a greater threat to food safety. Population ageing, urban sprawl and migration, and mass food production due to population growth and changing dietary patterns are all examples. Both traditional and modern food safety techniques should be improved and implemented properly. Legislative measures should be employed where necessary, but voluntary compliance and education of consumers and professional food handlers should be prioritised. This will be a major undertaking for primary care.

Analysis of Voluntary Compliance with Taxes in the Framework of Adam Smith's Taxation Principles

Modern maliye anlayışının bir gereği olarak hükümetlerin iktisadi, mali ve sosyal alanlarda görev ve sorumluluklarını yerine getirebilmesi adına ihtiyaç duyduğu gelirin önemli bir bölümü vergiler ile finanse edilmektedir. Hükümetlerin vergilerden beklenen optimum hasılatı sağlayabilmesi, işlevsel bir vergi sistemlerinin oluşması ile mümkün olabilmektedir. İşlevsel bir vergi sistemini oluşturabilmeleri ise vergileme ilkeleri ile yakın ilişki içerisindedir. Nitekim bir vergi sisteminden beklenen faydanın sağlanabilmesi, vergileme ilkelerinin vergi sistemine nüfuz etme derecesi ile ilişkilidir. Vergi sistemlerinin sağlam temeller üzerine inşa edilebilmesinde vergileme ilkeleri önem arz etmekteyken, bu sistemden sağlanacak olan optimum hasılat için vergiye gönüllü uyum önem arz etmektedir. Vergi uyumunun sağlanması dünyadaki tüm ülkelerin vergi ile ilgili en önemli problemleri arasında gelmektedir. Vergi sosyal bir olgu olmakla birlikte, verginin yüklenicisi olan mükellef için psikolojik bir olgudur. Bu bağlamda hükümetlerin, vergi sistemlerini oluştururken vergileme ilkelerine, sistemden optimum hasıla sağlayabilme durumunda ise vergiye gönüllü uyuma önem vermeleri gerekmektedir. Çalışmada Adam Smith’in vergileme ilkeleri kapsamında Kocaeli ilinde vergiye gönüllü uyum analiz edilmiştir. Araştırma sonucunda bireylerin vergiye gönüllü uyum göstermelerini teşvik eden en önemli ilke “iktisadilik ilkesi” iken vergiye karşı gönülsüz tavır sergilemelerini tetikleyen ilke ise “adalet ilkesi” olarak tespit edilmiştir.

Comparative Overview of Tax Amnesty Policy Implementation in Nigeria

Nigeria between 2016 and 2019 implemented several tax amnesty programmes successively. Tax amnesty is the release from the consequence of non-compliance with a tax obligation. The repetition of tax amnesty schemes within a short period indicates that there are lapses in tax administration in Nigeria. This paper examines the role of Tax amnesty in catalysing domestic resource mobilisation and voluntary compliance to tax obligations in Nigeria; drawing from the lessons presented by the experiences of Ghana, South Africa, Mauritius, Kenya, Ireland, Indonesia and the United Kingdom. The doctrinal research methodology is adopted in this research. The paper will contend that for a tax amnesty to succeed there is need for an effective tax administrative system that has the capacity to enforce tax laws and sanctions. It recommends that a sectorial tax amnesty is preferable for Nigeria.

Pengaruh pengetahuan dan digitalisasi perpajakan terhadap voluntary tax compliance di mediasi kepercayaan pada industri kecil menengah Jawa Timur

The purpose of this research is to provide empirical evidence regarding: (1) the effect of tax knowledge on voluntary tax compliance. (2) the effect of trust in tax authorities mediating tax knowledge and voluntary tax compliance (3) The effect of tax digitalization on voluntary tax compliance (4) the influence of trust mediating tax digitalization on voluntary tax compliance. In this study, data was collected by distributing questionnaires to obtain 264 samples which were then processed using Smart PLS 3.0 software. In this study, the data analysis technique used was SEM-PLS. The results of this study indicate that knowledge of taxation has a positive effect on voluntary tax compliance, knowledge has a positive effect on trust, and trust has a positive effect on mediating knowledge and voluntary tax compliance. This study also shows the positive effect of tax digitization on voluntary tax compliance and the positive effect of Tax Digitalization on trust, and trust also has a positive influence in mediating tax digitalization on voluntary tax compliance.