Albanian Individual Taxpayers Perceptions and Determinants on Ethical Behavior Regarding Tax Compliance

Salé, Michael J.; Muharremi, Oltiana; Hoxhaj, Meleq

doi:10.21272/bel.5(1).66-80.2021

Cited by 14 publications

(6 citation statements)

References 34 publications

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“…According to research by Sale et al (2021), the government significantly influences tax evasion. Tax authorities are essential in reducing the tax gap and encouraging compliance.…”

Section: Multiple Regression Analysismentioning

confidence: 99%

Cognizant of The Importance of Tax Compliance Intention among Individual Taxpayers in Malaysia

Ismail Khan,

Zainul Abedin,

Abd Rasit

2024

IJAREMS

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Previous studies on tax compliance intention by individual taxpayers have been largely empirical, with no consensus among researchers regarding the factors that influence tax compliance. The present research aims to identify the determinants that significantly affect the intention of tax compliance among individual taxpayers in Malaysia to provide valuable insights for policymakers and stakeholders. It seeks to determine the impact of five key elements: tax audit, penalty rate, tax fairness, government spending, and financial position on individual tax compliance. The theory of planned behaviour is used in tax compliance literature and has been applied to form the framework and to develop the hypotheses. A quantitative study was conducted using individual Malaysian taxpayers, and a questionnaire design was utilised to collect data via Google Forms. Out of the 384 questionnaires distributed, only 242 samples of individual taxpayers answered and were usable for this study. The researchers developed and tested five hypotheses. The results suggest that tax audits, penalty rates, and government spending positively impact an individual's intention to comply with taxes. However, tax fairness and financial position do not affect tax compliance intention. Therefore, three of the five hypotheses were proven correct and supported. The study results are helpful for the Malaysian government and tax authorities in identifying the root cause of non-compliance. Malaysia is facing significant issues related to tax noncompliance, and the tax authority is struggling to investigate the reasons behind noncompliance due to a lack of resources. Identifying the reasons behind tax non-compliance is crucial for policymakers, and this study can help pinpoint the underlying factors contributing to non-compliance.

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“…According to research by Sale et al (2021), the government significantly influences tax evasion. Tax authorities are essential in reducing the tax gap and encouraging compliance.…”

Section: Multiple Regression Analysismentioning

confidence: 99%

Cognizant of The Importance of Tax Compliance Intention among Individual Taxpayers in Malaysia

Ismail Khan,

Zainul Abedin,

Abd Rasit

2024

IJAREMS

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“…Perception also acts as a lens with many aspects that society can use to evaluate fairness, transparency, and the overall impact of taxes on life and well-being (Salé et al, 2021). Fairness serves as the foundation for taxpayers to measure the equitable distribution of the tax burden across different income levels.…”

Section: Taxpayer Perceptionsmentioning

confidence: 99%

Moderation Of Religiosity On The Determinants Of Individual Non-Employee Taxpayers' Perceptions Of Tax Avoidance Ethics

Marfiana,

Wahyuni

2024

Educoretax

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This research aims to determine whether the religiosity variable can moderate the influence of the taxation system variables, discrimination, tax justice and understanding of taxation on the perception of non-employee individual taxpayers in Denpasar City. The research method used is a quantitative approach with SEM PLS analysis techniques. Data and information were obtained from primary data using questionnaires distributed at Denpasar Timur Tax Office and Denpasar Barat Tax Office. The results of data processing from 100 respondents consisting of non-employee taxpayers show that the tax system, discrimination, tax justice, understanding of taxation and religiosity can explain the variable perception of ethical tax avoidance by 62.5% while the remaining 37.5% is explained by variables outside this research. The results of hypothesis testing show that the variables of the tax system, discrimination, tax fairness and religiosity have a significant positive influence on the perception of the ethics of tax avoidance. Meanwhile, the tax understanding variable does not have a significant influence on tax avoidance ethics. The better the tax system, tax fairness and taxpayer religiosity, the higher the intention to avoid paying taxes. This increase in the intensity of tax evasion can occur due to several factors such as the complexity of regulations, legal permits, effective sanctions for tax violators, and different religious views. On the other hand, high levels of discrimination will make taxpayers think that tax avoidance is one way to fight or overcome the inequality produced by the system. The conclusion of this research is that the religiosity variable cannot moderate the four independent variables because the ethical values that arise related to religiosity cannot always play a role in how individuals deal with taxation.

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“…Ordinal responses were on a 7-point Likert response scale ranging from 1=Strongly Disagree, 2=Disagree, 3=Somewhat disagree, 4=Neither agree nor disagree, 5=Somewhat agree, 6=Agree, 7=Strongly agree. We previously published work analyzing and factoring the 23 tax policy variables and their relationship to the five ethical beliefs variables (Salé et al, 2021). This research concentrates on the relationship between the six demographic and socio-economic variables and the five ethical beliefs variables.…”

Section: Participants and Materialmentioning

confidence: 99%

“…Three criteria have been established to determine if a tax avoidance transaction exists: (A) absence of a valid business purpose; (B) avoidance of obligations or constraints; and (C) tax advantage (Benefit-reduction or refund of taxes). Government policies, according to Salé et al (2021), have a substantial correlation with taxpayers' tax compliance behavior, and higher tax rates are a key factor influencing tax evasion.…”

Section: Introductionmentioning

confidence: 99%

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

Muharremi

Salé

Hoxhaj³

2022

BEL

Self Cite

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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.

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Albanian Individual Taxpayers Perceptions and Determinants on Ethical Behavior Regarding Tax Compliance

Cited by 14 publications

References 34 publications

Cognizant of The Importance of Tax Compliance Intention among Individual Taxpayers in Malaysia

Cognizant of The Importance of Tax Compliance Intention among Individual Taxpayers in Malaysia

Moderation Of Religiosity On The Determinants Of Individual Non-Employee Taxpayers' Perceptions Of Tax Avoidance Ethics

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

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