Taxpayers Compliance Behaviour: Economic Factors Approach

apriyaliwahab — Tue, 11 Oct 2022 06:21:41 +0000

Many developing countries have been integrating multiple tax brackets within the reforms of their respective tax regimes. Since tax systems were introduced in Asian countries several centuries ago, the determinants of tax compliance have been found to differ between countries. No universal findings are highlighted by researchers pertaining to genuine tax compliance determinants among countries sharing similar tax systems, cultures and ethnicities. The present paper attempts to reveal the determinants of tax compliance in Malaysia in a self-assessment system (SAS) with special emphasis on individual taxpayers. Four tax compliance determinants are examined: the probability of being audited; the perception of government spending; tax rates; and the role of the tax authority. From a survey of 1,073 respondents, the results show that all four determinants have a significant impact on tax compliance. The results of the present study may be useful for policymakers in relation to improving tax compliance in light of the four factors. By identifying the a fore mentioned determining factors, the present study further contributes by providing evidence of other key tax compliance determinants in a developing country, particularly in Asia, that is generally under researched. These determinants are expected to affect tax compliance behaviour in other countries that have similar taxpayer backgrounds, cultures, economic environments and policies. The present study may also be utilised to provide further information to assist tax authorities in other Asian countries to improve their respective SAS plans in the future.

Readability Assessment of Nigerian Company Income Tax Act

syafiqahazieati — Sat, 08 Oct 2022 08:38:51 +0000

This study was undertaken to examine the readability of the Nigerian Company Income Tax Act 2007 (CITA 2007), which is the main reference for taxpayers who have intention to comply. For that purpose, the researchers employed readability formulae namely Flesch Reading Ease Score (FRES), Flesch-Kincaid Grade Level (F-KGL), Average Sentence Length (ASL) and Percentage of Passive Voice (PPV). FRES measures the readability of technical writing and rates texts on a 0-100-point scale, while F-KGL translates the 0-100 raw FRES into the number of years of education generally required to understand the materials. On the other hand, ASL and PPV deal with average length and percentage of passive voice, respectively. All these measures were calculated using Microsoft Word 2000. The study found that CITA 2007 has low level of readability which made the Act very difficult to understand. Further, the results indicate that CITA 2007 can only be understood by those with tertiary education. The study recommends that tax simplification policy in Nigeria should include language simplification to enable taxpayers to understand the Act correctly which subsequently motivate them to comply voluntarily; and consequently result in more tax revenue to boost the economy of the nation.

self-assessment system – Jurnal Pengurusan

Taxpayers Compliance Behaviour: Economic Factors Approach

Readability Assessment of Nigerian Company Income Tax Act