Corruption and Tax Noncompliance Variables: An Empirical Investigation From Yemen

Obaid, Mohammed Mahdi; Udin, Noraza Mat

doi:10.5430/ijfr.v11n4p52

Cited by 3 publications

(1 citation statement)

References 43 publications

(59 reference statements)

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“…These businesses already face numerous challenges, such as limited resources and access to capital. Tax corruption adds a burden by requiring UMKM to engage in corrupt practices or pay bribes to navigate the tax system and avoid penalties (Obaid & Udin, 2020).…”

Section: Tax Corruption and Tax Compliancementioning

confidence: 99%

Tax Compliance in Indonesian MSMEs: Key Factors Explored

Michael,

Widjaja

2024

JPK

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This study investigates the factors that impact tax compliance in Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, focusing on tax knowledge, tax sanctions, tax corruption, and information technology utilization. A survey of 200 MSMEs in Jakarta and SEM-PLS analysis found that tax knowledge does not significantly affect tax compliance. Tax sanctions proved to be a significant motivator for tax compliance, while tax corruption negatively eroded trust in the tax system. In addition, it was found that information technology moderates the effect of tax knowledge on compliance, suggesting the potential to improve tax understanding and simplify processes. The practical implication is the importance of implementing stricter tax penalties, the use of technology in tax education, and increased transparency in tax administration to mitigate corruption and encourage tax compliance among MSMEs. The findings provide theoretical contributions and practical implications in designing effective strategies to increase tax compliance and government revenue.

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Section: Tax Corruption and Tax Compliancementioning

confidence: 99%

Tax Compliance in Indonesian MSMEs: Key Factors Explored

Michael,

Widjaja

2024

JPK

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Effects of some macroeconomics variables on estimated tax evasion: evidence from Sub-Saharan Africa

Ya'u,

Umar,

Yunusa

et al. 2024

AJEMS

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PurposeMost research on tax evasion focused on microeconomic variables revolving around perceptions and decisions of individual taxpayers. However, a new wave of research is now investigating the role of macroeconomic variables in inducing tax evasion. This study adds to the limited studies in this new direction of research. Previous studies found that inflation, low gross domestic product (GDP) growth and gross fixed capital formation causes recession, increases unemployment, raise interest rates, hurts both domestic and foreign direct investments. This study examined the relationship between these variables and estimated tax evasion in Sub-Saharan Africa.Design/methodology/approachThe study adopts a correlation research design with 2,300 data points collected from 23 countries in Sub-Saharan Africa. Specifically, tax to GDP ratio, gross fixed capital formation per GDP and the GDP annual growth report from each country for the period 2011–2020 was retrieved. Generalised least square regression technique was employed to analyse the data due to the presence of heteroskedasticity in the model and random effect was utilized based on the Hausman test. To avoid misspecification and biased result; therefore, all relevant test was conducted including the multicollinearity test.FindingsThe results indicate that GDP annual growth and gross fixed capital formation have a significant negative impact on estimated tax evasion in Sub-Saharan Africa. The findings further indicate a negative but insignificant relationship between inflation and estimated tax evasion in Sub-Saharan Africa. The study concludes that both GDP annual growth rate and gross fixed capital formation negatively influence estimated tax evasion and the policy implications in the African continent were discussed.Originality/valueThe new findings on the effects of GDP annual growth, growth fixed capital formation and inflation on estimated tax evasion provide novel knowledge that is currently lacking in the current literature, specifically Sub-Saharan African continent.

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Structural Equation Modeling: Taxpayer Compliance of Msmes in Kediri City

Tohari,

Ramadhani,

Muslih

et al. 2024

RGSA

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Purpose: The importance of SMEs in bolstering tax revenue streams, emphasizing their significance in the fiscal landscape of developing economies. The Objective to explore the relationships between tax incentives, tax services, tax sanctions, and tax morale on the tax compliance of Micro, Small, and Medium Enterprises (MSMEs) taxpayers in Kediri City Method: This study is designed to address the formulated issues and employs a causal research design. The analysis used for testing the model and hypotheses is Structural Equation Modeling (SEM) using the SmartPLS program. Parameter estimation within SEM-PLS is obtained through the following three stages of the iteration process: First Stage; determining weight estimate used to assign scores to latent variables, Second Stage; determining path estimate connecting latent variables and estimating loading between latent variables and their indicators, Third Stage; determining average estimates and parameter locations (regression constant values, intercept) for indicators and latent variables. Results and conclusions: The tax incentives, tax services, and tax sanctions had a significant and positive impact on tax compliance, but tax morale has a positive but not significant impact on tax compliance of MSMEs taxpayers in Kediri City. Research implications: The government-regulated tax incentives should be maintained. The measurable tax policy, specific socio-economic and cultural, strategies like educational campaigns, awareness initiatives, and the provision of quality public services should be considered to enhance the impact of tax morale on tax compliance. Business sustainability should be considered as well. Originality/value: Tax morale, as a critical aspect in achieving tax compliance, exhibits a less favorable response from MSMEs business actors in Kediri, Indonesia. Consequently, this necessitates further research design regarding tax morale to obtain better insights into the behaviors and beliefs of MSMEs business actors towards taxation.

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Corruption and Tax Noncompliance Variables: An Empirical Investigation From Yemen

Cited by 3 publications

References 43 publications

Tax Compliance in Indonesian MSMEs: Key Factors Explored

Tax Compliance in Indonesian MSMEs: Key Factors Explored

Effects of some macroeconomics variables on estimated tax evasion: evidence from Sub-Saharan Africa

Structural Equation Modeling: Taxpayer Compliance of Msmes in Kediri City

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