Determinants of external tax compliance costs: Evidence from South Africa

Smulders, Sharon; Stiglingh, Madeleine; Franzsen, Rcd; Fletcher, Lizelle

doi:10.1080/10291954.2016.1160175

Cited by 12 publications

(32 citation statements)

References 10 publications

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“…This suggest that increase in time required to prepare and pay indirect taxes will lead to high costs which ultimately affects productivity of the firm. These costs reduce business resources without raising income to the government, resulting in a waste of economic assets [38].…”

Section: Overview Of Fuel Excise Tax In Ugandamentioning

confidence: 99%

Impact of Petroleum Excise Tax Costs on Firm Productivity in Uganda

Opiso

Nkundabanyanga

Tumwine

et al. 2022

JENRR

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The aim of this paper is to investigate the effects of petroleum fuel excise tax costs on productivity of generator-reliant firms in Uganda. Most studies investigated the association between corporate tax and firm productivity, value added tax and firm productivity. This study contributes to the neglected area on the influence of petroleum excise tax costs on firm productivity. In this paper, we employ the ordinary least square (OLS) method for estimations. The results show a negative impact of petroleum fuel excise tax costs on the productivity of manufacturing firms, driven by the severe tax burden. In addition there is a negative significant association between tax cost and household welfare. Therefore tax policy actors should formulate policies that not only raise tax revenue but also boost business growth.

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Section: Overview Of Fuel Excise Tax In Ugandamentioning

confidence: 99%

Impact of Petroleum Excise Tax Costs on Firm Productivity in Uganda

Opiso

Nkundabanyanga

Tumwine

et al. 2022

JENRR

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“…Physical capital resources are firms' physically existing capital commonly indicated by firm size. Cabrera-Suárez, Déniz-Déniz, and Martín-Santana (2014), Huybrechts, Voordeckers, Lybaert, and Vandemaele (2016), and Smulders, Stiglingh, Franzsen, and Fletcher (2017) identify that firms' resources -as measured by firm size -negatively affect tax aggressiveness. Meanwhile, human capital resources refer to the characteristics of top management, such as experience, which also negatively affects tax aggressiveness behaviour (Bjuggren & Sud, 2005;Smulders et al, 2017).…”

Section: Introductionmentioning

confidence: 99%

“…Cabrera-Suárez, Déniz-Déniz, and Martín-Santana (2014), Huybrechts, Voordeckers, Lybaert, and Vandemaele (2016), and Smulders, Stiglingh, Franzsen, and Fletcher (2017) identify that firms' resources -as measured by firm size -negatively affect tax aggressiveness. Meanwhile, human capital resources refer to the characteristics of top management, such as experience, which also negatively affects tax aggressiveness behaviour (Bjuggren & Sud, 2005;Smulders et al, 2017). Although the results of previous studies showed a negative effect, there remains a possibility that the size and experience of top management has a positive effect on tax aggressiveness.…”

Section: Introductionmentioning

confidence: 99%

Tax aggressiveness of family firms in emerging countries: How does resource-based view explain it?

Sucahyo¹,

Damayanti²,

Prabowo³

et al. 2020

EBER

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The objective of the article is to empirically examine the effects of three resource categories based on the resource-based view -represented by firm size, top manager's experience, and closeness to governments -on family firms tax aggressiveness in emerging countries. Research Design & Methods:The study used data from the World Bank's Productivity and the Investment Climate Survey that covers several issues, including taxation. The survey was held in 2006-2018. We use data from 19 848 family firms as our sample. Data is analysed with the Ordered Probit Model. Findings: The results of the analysis showed that family firms with resources of firm size, top manager's better experience, and closeness to government have the options to engage in greater tax aggressiveness than other family firms. Implications & Recommendations:The governments of emerging countries need to pay more attention to larger family firms and the firms led by more experienced top managers to enhance tax compliance because these firms potentially engage in greater level of tax aggressiveness. Contribution & Value Added: This study offers a better understanding of the tax aggressiveness of family firm that is relatively poorly understood in the literature with the resource-based view approach. Article type:research article

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“…Several studies have reported a negative relationship between company size and compliance expenses relative to turnover (Slemrod & Venkatesh, 2002;Smulders et al, 2017;Hanefah et al, 2002). In a comprehensive review of administrative and compliance costs of goods and services taxes (GSTs), Cnossen (1994) reported that the relative compliance costs associated with GSTs predominantly encumber SMEs.…”

Section: Business Sizementioning

confidence: 99%

“…The empirical research on TCC is scarce, there have been a number of investigations in certain countries and regions around the world, among which are Australia (Tran-Nam & Glover, 2002), US (Slemrod & Venkatesh, 2002), Canada (Clemens, 2008), the UK (Hansford et al, 2003), Belgium (Schoonjans et al, 2011), Malaysia (Ibrahim & Pope, 2011;Sapiei & Abdullah, 2014), South Africa (Smulders et al, 2017) and Indonesia (Savitri, 2016). A problem with international comparisons, however, is that there is no common definition of compliance cost and no accepted methodology to obtain empirical assessments (Chittenden et al, 2003;Das, 2018).…”

Section: Tax Compliance Costs (Tcc)mentioning

confidence: 99%

The effect of business characteristics on tax compliance costs

Fauziati¹,

Kassim²

2018

10.5267/j.msl

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Compliance fee is the cost incurred by the taxpayers in fulfilling the taxation requirements imposed on the taxpayers by the law and the authority of the country. The company expects to incur the minimum tax costs associated with fulfilling its tax obligations. Research on the influence of business characteristics to tax compliance cost is still scanty. This research examined the effect of business characteristics (age, size, sector and risk management) on tax compliance costs. The research design adopted in this study is survey design. The questionnaires were distributed to the members of Department of Cooperatives and Micro Small-Medium Enterprises in Padang City. The non-probability sampling was used as the sampling method and 92 respondents participated in this research. The data obtained were analyzed using Statistical Package for Social Sciences (SPSS). The research findings indicate that age, size and sector have no effect on tax compliance costs while risk management has an effect on tax compliance costs.

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Determinants of external tax compliance costs: Evidence from South Africa

Cited by 12 publications

References 10 publications

Impact of Petroleum Excise Tax Costs on Firm Productivity in Uganda

Impact of Petroleum Excise Tax Costs on Firm Productivity in Uganda

Tax aggressiveness of family firms in emerging countries: How does resource-based view explain it?

The effect of business characteristics on tax compliance costs

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