A Mixed-Methods Study of the Influence of Demographic Factors on Albanian Individual Taxpayers’ Ethical Beliefs Surrounding Tax Compliance

Abstract

Many governments worldwide are concerned about tax evasion and avoidance, which has been studied extensively over the years. The primary goal of this research is to convey Albanian citizens’ and taxpayers’ perspectives on tax evasion, avoidance, and compliance. Several studies are being conducted worldwide to assess the public’s perception of demographic factors influencing tax evasion and avoidance. The principal indicators used in this paper, such as the attitude toward tax evasion and tax avoidance, are based on individual taxpayer perceptions rather than real evidence. This issue is particularly acute in many developing and developed economies, including Albania. Tax evasion erodes the government’s ability to raise revenue impartially and cost-effectively. Tax evasion creates inequality among citizens/taxpayers and economic difficulties for the country. Because of the lower revenue generated by tax evasion, the state coffers cannot provide public services such as health, transportation, and justice that are tailored to the needs of taxpayers and the contributor’s rights. However, current research into the factors influencing tax evasion and avoidance in Albania is still limited. We analyzed data from a survey sent to 387 individual taxpayers in Albania to achieve our goals. We discovered relationships between socio-demographic factors and their impact on an individual’s ethical perception of tax avoidance and evasion using empirical analysis. For the statistical analyses in this paper, we used Fisher’s Exact Test on count matrices using R studio and JMP statistical software. Based on our empirical findings, we concluded that gender, marital status, level of education, and residential area all impact tax compliance and ethics. While there is a statistically significant relationship between employment status and influence on tax evasion and avoidance, insufficient evidence demonstrates a trend. No statistically substantial dependence was found for the age determinant. The study’s findings may be helpful to researchers, policymakers’ institutions, and practitioners.

Using Mixed Methods to Understand Tax Compliance Behaviour

“…Development of the quantitive method is often the reason for mixing methods (Enachescu et al, 2019;Isa, 2014;Lavermicocca and McKerchar, 2013;Muharremi, Salé & Hoxhaj, 2022;Rosid, Evans and Tran-Nam, 2016;Sobhkhiz et al, 2019). This perhaps also explains the disproportionate presentation of results, with the focus on presenting results from the quantitative method and a superficial presentation of the results from the qualitative method.…”

“…By incorporating the role of structural and content attributes the researcher was able to test the effect of this factor on the relationship between nudge messages and tax compliance behaviour thus increasing the validity of the quantitative results. A few tax compliance studies have acknowledged this value of improving data collection instruments by adopting a mixed methods approach (Enachescu et al, 2019;Isa, 2014;Lavermicocca and McKerchar, 2013;Muharremi, Salé and Hoxhaj, 2022;Rosid, Evans and Tran-Nam, 2016;Sobhkhiz et al, 2019).…”

Gender and the Tax Compliance Puzzle: Does gender influence taxpayers' behaviour towards tax compliance? Evidence from Rwanda

“…D'Attona et al (2019) have highlighted a difference in honesty between men and women. According to Rahmawati and Dwijayanto (2021) and Maharremi et al (2022), women are generally considered to be more honest, obedient, and receptive to justice than men.…”

Analyses Of Demographic Changes, Labor Market Trends, And Challenges In Albania

“…Albania is through a protracted transition period. Muharremi et al, (2022) stated that despite being during a relatively long transition period, Albania has demonstrated a bevy of internationally widespread issues and has a varied influence. According to Matuka and Asafo's (2021) findings, the transportation, communication, and financial services sectors, all have a favorable influence on economic growth, whereas the manufacturing sector has a negative impact.…”