Exploring Corporate Tax Compliance in the Era of Digital Tax Collection and Administration:Insights from the“Golden Tax Phase Four”Project

This article primarily examines the current state of tax collection and management,alongside other associated issues.It integrates insights from China’s“14th Five-Year Plan”and anticipates the imminent implementation of the“Golden Tax Phase Four.”With this backdrop,the article offers recommendations for advancing the reform of the tax collection and management system,fostering the development of intelligent taxation,and accelerating the modernization of tax collection and management in China.

A self-employed taxpayer experimental study on trust,power,and tax compliance in eleven countries

The slippery slope framework explains tax compliance along two main dimensions,trust in authorities and power of authorities,which influence taxpayers’compliance attitudes.Through frequentist and Bayesian analyses,we investigated the framework’s assumptions on a sample of 2786 self-employed taxpayers from eleven post-communist and non-post-communist countries doing business in five economic branches.After using scenarios that experimentally manipulated trust and power,our results confirmed the framework’s assumptions regarding the attitudes of the self-employed taxpayers;trust and power fostered intended tax compliance and diminished tax evasion,trust boosted voluntary tax compliance,whereas power increased enforced tax compliance.Additionally,self-employed taxpayers from post-communist countries reported higher intended tax compliance and lower tax evasion than those from non-post-communist countries.Our results offer tax authorities insights into how trust and power may contribute to obtaining and maintaining high tax compliance levels amid global economic challenges,downturns,and increasing tax compliance costs.

Voluntary tax compliance behavior of individual taxpayers in Pakistan

Governments settle their financial obligations and pay for the public expenditures largely through finances generated from taxes.For many developing countries like Pakistan,the state authorities are still having difficulty to achieve tax compliance.Existing literature has yet to traverse individual’s tax compliance behavior on developing countries.The current study,however,explores the relationships among voluntary tax compliance behavior of individual taxpayers with selected economic,social,behavioral and institutional factors.This individual tax compliance behavior is studied through the multi-perspective lenses of the theory of attribution,equity theory,expected utility theory,and social exchange theory.Quantitative design using the survey method was employed to collect data from 435 individual taxpayers through questionnaire.For testing linkage between constructs,through mediation and moderation tests,structural equation modeling technique was used.The results suggest that tax compliance simplicity has a larger impact on tax filing than perception about Government Spending and tax morale.Furthermore,perception of fairness significantly mediates the strengths between morale,simplicity,government spending and compliance behavior.

Impact of Tax Audit on Tax Compliance with Reference to Category“A”Taxpayers:A Case Study in Hawassa City Administration,South Nations,Nationalities and Peoples’Regional State of Ethiopia

The main issue faced by all tax authorities is that it has never been easy to persuade all taxpayers to comply with the regulations of a tax system.Business sector is one of the fastest growing sectors of the economy in Ethiopia.The study specifically sought the effect of tax audit,fines and penalties,and tax education and knowledge on tax compliance in Hawassa City,south nations,nationalities and peoples’regional state.Population under this research comprises Hawassa City audit officers who are 50 audit officers.Since the number of staff is not large,the study used census approach.Data were collected using structured questionnaire,both primary and secondary data were used.Descriptive statistical tools and correlation and multiple regressions analysis were used in analyzing the data collected.The study findings showed that probability of tax audit,and tax knowledge and education have positive effect on level of tax compliance.Similarly,fines/penalties have positive effect on level of tax compliances.The study provides some preliminary evidence that probability of tax audit,imposing fines/penalties and provision of tax knowledge and education will improve tax compliance.There should be stiff enforcement of fines and penalties to deter tax evasion.Additionally,tax authorities should simplify processes involved in filling of returns and payment of taxes.

Influencing Factors of Taxpayers'Tax Compliance in the Perspective of Government Governance

At present,government governance reflects that the new public management plays an irreplaceable role in promoting the social participation of democratic individuals,stimulating the vitality of the society,as well as improving the equal consultation between citizens and governments under the guidance of the governance spirit.Especially in the process of transformation of the industrial society,significant changes have taken place in government governance modes.The government plays important roles in the democratic society to form clear theoretical frameworks in view of then-understanding towards the modernization of government governance.With significant development of information technology,existing modes of social and economic developments had transformed in addition to profound social changes.These developments would affect the research on government governance.In the perspective of government governance,it is of great significance to explore its role in the influence towards tax compliance especially under the current system and mechanism to create an excellent tax compliance spirit.From existing research,the main aspects used in measuring government governance are the openness of government affairs,social justice,and individuals5 understanding of the tax law.With existing research,201 survey questionnaires of the subjects,validity analysis,descriptive statistics analysis,correlation analysis,regression analysis,and other methods,this study made bold assumptions on the relationship between government governance and tax compliance.The conclusion in which government governance,measured in terms of government affairs,degree of social justice,and personal understanding of the tax law would influence taxpayers5 tax compliance in terms of then-consciousness towards tax compliance.At present time,the study of government governance and taxpayers,tax compliance has practical significance and application value.This study would provide an opportunity for citizens to have a preliminary understanding of overall tax compliance and maintain the spirit of tax compliance from an individuaFs subjective consciousness in addition to providing suggestions to improve government governance for promoting tax compliance.

Perceptions of trust and power are associated with tax compliance:A cross-cultural study

The slippery slope framework(SSF)of tax compliance postulates that taxpayers’compliance behaviour depends on the two dimensions:trust in authorities and power of authorities.In an attempt to overcome common-method biases,the present study tests the main assumptions of the SSF with a sample of 44 countries/regions.Country/region-level trust and power indices are calculated based on experimental data involving 14,509 participants and related to shadow economy estimates and–as an alternative indicator of non-compliance–corruption indices.The results indicate that both trust and power are negatively related to the size of the shadow economy and the extent of corruption.These results emphasise the importance of both SSF dimensions in combating tax evasion and counterproductive behaviour within a society in general.

Declaring income versus declaring taxes in tax compliance experiments:Does the design of laboratory experiments affect the results?

Laboratory experiments are frequently criticised,in part because of the sensitivity of the results to specific features of the design.This paper addresses an important question regarding the key aspect of the experimental environment:How should the dependent variable–participants’choices–be operationalised?For the specific context of laboratory research on income tax compliance,we compare the effects of the two most common operationalisation types:the declaration of gross income versus the declaration of tax payment.It is found that compliance is higher when participants indicate their tax payment than when they declare their income.It is also discovered that the effects of the three policy parameters of the economic model(the tax rate,audit probability and fine rate)are stronger when participants declare their taxes than when they declare their income.These results are relevant for interpreting prior and future experimental evidence on tax compliance and can explain some contradictory previous findings.More broadly,this study suggests that the results of laboratory experiments may depend on specific features of the experimental design,which proposes a strong need for more systematic methodological research.

Using behavioural economics to understand tax compliance

‘Behavioural economics’,or the application of methods and evidence from other social sciences to economics,has increased greatly in significance and use in the last two decades.In this paper,we discuss the basic elements of behavioural economics.We then assess the applications of behavioural economics to the analysis of tax compliance.Our central conclusion is that many,perhaps most,of the recent insights on what motivates tax compliance have flowed directly from behavioural economics.We conclude with suggestions on–and predictions of–directions in which future applications should prove useful.

Control of Corruption,Trust in Government,and Voluntary TaxCompliance in South-West,Nigeria

Tax payers’level of compliance behaviour is a major concern to government and tax authorities.Constant losses of tax revenue through bribery,corruption,and abuse of power for personal advantage are perceived to have adversely affected nation’s economic growth and infrastructural development.Many researches have been conducted on taxpayers’compliance,but not many considered the effect of Control of Corruption(COC)in their study.This study looked at the probable influence of COC on individual taxpayers’voluntary tax compliance behaviour in South-West,Nigeria.Survey research design was adopted for the study.Population for the study was 5,216,422 individual taxpayers in three selected states.A validated questionnaire was used to collect data from respondents by means of Stratified and random sampling techniques with a sample size of 1,200 and this gives a response rate of 87.6%.The reliability test using Cronbach’s alpha coefficients ranged from 0.79 to 0.86.The study adopts descriptive and inferential statistics to analyze the data at 0.05 level of significance.The study shows that COC positively influenced voluntary tax compliance among individual taxpayers in the study states(Adj.R2=0.063,F(6,1050)=12.68,p=0.000).There was evidence that trust in government,COC,and employment status have significant relationship with voluntary tax compliance behaviour in the study states(β=0.139,t(1044)=6.125,p=0.000,β=0.154,t(1044)=5.025,p=0.000,β=-0.237,t(1044)=-3.562,p=0.00)while gender,age,and educational level do not have significant relationship with voluntary tax compliance(β=0.036,t(1044)=0.664,p=0.664,β=-0.002,t(1044)=-0.080,p=0.936,β=0.035,t(1044)=1.081,p=0.280),respectively.The study concluded that control of corruption influenced individual voluntary tax compliance.Government should put better stiff strategies in controlling corruption on tax matters,overhaul the internal control mechanism,establish state anti-graft agencies,and put stiff punishment for any fraudulent activity on tax revenue generation while zero tolerance to corruption should be seen and practice.

The Use of Technology to Enhance Taxpayer Service and Improve Tax Compliance——Experience of Hong Kong, China

The Inland Revenue Department(IRD)is the authority which administers the tax law in the Hong Kong Special Administrative Region of the People’s Republic of China.This article shares the IRD’s experience in applying digitalised tax administration to enhance taxpayer services and improve tax compliance.This can be achieved through developing user-friendly digital platforms for filing and communication,the use of prepopulated tax returns,fillable PDF public forms and online systems for paying taxes,and providing accessible and easy-to-understand tax information on the Internet.

Empowering Taxpayers Through Technology-Driven Services and Education

What tasks do technological changes taking place in the world impose on tax administrations,and at the same time,what opportunities do they create in enforcing the principle of public responsibility?How can innovations like European Digital Identity Wallet(EUDIW)be applied in the authentication environment?What assistance can the authorities provide in the integrity of taxpayers'business data?What developments are seen in the work of the Hungarian tax administration to use transaction-based data to contribute to a more modern public administration system and,last but not least,to a fair public burden?How does blockchain as a technology platform support data integrity?How does personalized and easy-to-understand communication revolutionize customer information?These questions are answered in this article.

Is tax evasion macho?Testosterone,personality traits and evasion

This paper examines the potential effects of testosterone and personality traits on the decision to evade taxes.In a series of experiments,subjects completed behavioural tasks and made a one-shot tax evasion decision.We estimate a negative weakly significant treatment effect,which suggests that an exogenous increase in the testosterone level may inhibit the decision to evade taxes.Our results also suggest that higher dominance and independent self-construal,as well as lower self-control,are associated with a greater likelihood of tax evasion.We discuss the mechanisms potentially linking testosterone to tax evasion.These findings support the inclusion of biological factors in the analysis of tax evasion behaviour.

Whistleblowing and tax evasion:Experimental evidence

In a tax compliance experiment we manipulate various dimensions to isolate the effects of whistleblowing:whether incomes are homogeneous or heterogeneous;whether whistleblowing is permitted or not;and whether subjects have complete or incomplete information about others’tax evasion.Under complete information,we find that whistleblowing has a strong impact on compliance,reducing the proportion of concealed income and increasing the precision of the auditing procedure.Moreover,the probability of being whistled increases with evasion and rich subjects react to whistleblowing more than poor subjects do.Introducing incomplete information reduces the deterrent effect of whistleblowing,but not among the richest taxpayers.

The Use of Digital Technology by Belt and Road Tax Administrations

The growing trading links in the modern world have made it more difficult for tax administrations to monitor the activities of multinational enterprises(MNEs)operating on their territory.Advanced technology and communications have been used by MNEs to increase the scope of their operations and create global supply chains,while tax administrations try to use limited resources to apply the tax rules.The development of digital technology within government can help tax administrations to implement the latest international tax rules and monitor taxpayer activities more completely,improving domestic resource mobilisation.A benefit of more digitalisation for tax administrations is the ability to manage data and use analytical tools to make the best use of the data acquired.Wider international tax cooperation has provided tax administrations with access to information from country-by-country(CbC)reporting,the common reporting standard(CRS)and the exchange of tax rulings.These give tax administrations access to large volumes of data in relation to cross-border activities to facilitate risk assessment.Digitalisation can also reduce the compliance burden of taxpayers by making it easier to complete their tax obligations,helping them to integrate taxation processes into their routine business systems.Full use of technology combined with adequate governance can boost the efficiency of tax administration.The Belt and Road Initiative Tax Administration Cooperation Mechanism(BRITACOM)can be a platform for cooperation among tax administrations to gain more efficiency.It is important for BRI tax administrations to learn from each other through sharing their knowledge and experience in the introduction of digital technology.

Sustaining Economic Growth Through Customer-Oriented Taxpayer Services Reform in Indonesia

Maintaining economic growth is a challenging undertaking.A nation requires numerous resources to keep its economy running and growing.In Indonesia,taxes continue to be the major contributor to the budget.Indonesia’s tax authority must collect taxes and duties owed in line with the law and in a manner that maintains confidence in the tax system and its administrations in order to keep the economy afloat.Thus,it is vital to devise a plan to prevent revenue loss.This article aims to evaluate the efforts of Indonesia’s tax authority to improve tax services as an investment and trade promotion strategy,as well as to improve tax compliance among taxpayers.This article will detail the efforts taken by the Directorate General of Taxes(DGT)to reform tax services,and the current work and future outlook of DGT’s tax services reform.

Taxes and Investment Climate:How about a BRITACOM-Report Metric for Its Jurisdictions?

BRITACOM has set up the mission to accelerate the Sustainable Development including the economic growth of the BRI jurisdictions—a mission fully supported by ICC.A key element for growth and investment is creating transparency for business.In that regard,tax factors represent only one but an important element which can influence international trade and cross-border investments.Therefore the question arises if there should be a performance metric analyzing the tax and investment climate.This article discusses on behalf of ICC the relevant factors how transparency can be created and if there is a fit within BRITACOM’s vision.

Do experienced subjects bias experimental results?Evidence from 16 laboratories in six countries

This paper addresses an area of growing concerns for laboratory researchers:is subjects’behaviour affected by prior experiences in laboratory experiments?We address the question with a large and highly diverse international dataset and an operationalisation strategy that allows our findings to cohere with previous work while shedding new light on future research.The findings presented in this article are drawn from original data gathered as part of one of the largest tax compliance experiments ever conducted,involving more than 3,000 participants in six countries,across 16 different laboratories.Our results reveal that subjects’behaviour correlates with their past experimental experiences,in a way that could bias results and compromise a study’s external validity.However,this change in behaviour due to experiences occurs only after subjects have participated in at least two previous laboratory experiments.The findings have implications not just for tax compliance research,but for allocation experiments more generally and for participant recruitment particularly.

Implementation of the Electronic Cash Register in Sierra Leone——How Far has the National Revenue Authority Come?

Sierra Leone National Revenue Authority(NRA)has struggled with a manual system of tax administration for so many years.The Domestic Tax Department that deals with Goods and Services Tax(GST)was also overwhelmed by a manual receipting system,which obviously posed serious threat to revenue growth and the overall tax administration system.Prior to the digitalization of the processes and procedures of the tax system,the NRA’s key focus was directed towards increasing compliance and revenue using other techniques in the absence of automation.The introduction of the Electronic Cash Register is proving to be a game changer in the domestic revenue mobilization.This article gives us an insight into how far the NRA has come in the implementation of the Electronic Cash Register.