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| Journal of Asian Business and Economic Studies |
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Vol. 26(S01)
, May 2019, Page 45-73
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| An analysis of taxpayer compliance using a cost-benefit approach |
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| Saw Sor Tin |
DOI: 10.24311/jabes/2019.26.S01.3
Abstract
This study seeks to analyze and enhance understanding of taxpayer compliance with tax obligations in a systematic way by using the cost-benefit approach. Data from a sample of 250 audited service tax payers are used to examine the compliance factors. The hypotheses are tested using Spearman’s rho for ordinal variables and biserial correlation for dichotomous data. A decision matrix is used to make a logical conclusion on the business firm reporting behavior based on the derived expected utility value and compliance level. The results show a positive significant correlation between taxable sales, return submission and taxpayer compliance, but taxpayer compliance has a negative relationship with deficiency amount, penalty, and three other variables. The study suggests that minor penalties are unlikely to deter non-compliant behavior and economic factors seem to exert more influence on compliance. The methodology and matrix diagram can be customized to the requirements of tax audit management for assisting in audit case selection and strategy program to detect under-declaration and minimize shortfall in tax revenue. The taxpayer compliance-Correlation-Expected utility matrix analyzes the taxpayer’s expected utility function and compliance behavior, and provides an insight to what the most likely decision of a taxpayer is under certain assumptions.
Keywords
Expected utility; Compliance decision matrix; Audit selection.
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GST fraud prevention to ensure business sustainability: A Malaysian case study
2020, Journal of Asian Business and Economic Studies
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Abstract
Purpose - This study provides in-depth explanation of Goods and Services Tax (GST) fraud prevention towards sustainability business.
Design/methodology/approach - This study applies a qualitative research method, i.e. case study, to address the specific research objective.
Findings - The finding revealed a GST prevention model towards sustainable business. The finding shows that it is pertinent for the government to set preventive strategies in order to retain sustainable income for the government. Two essential dimensions emerged in the findings to support preventive strategies, namely macro- and micro-level measures.
Practical implications - The findings of this study provide managers, investors and policymakers with evidence to what extent GST fraud could be minimize in order to safeguard government source of revenue and retain sustainable business in a country. As GST is an important source of revenue for the government, it is thus crucial to prevent fraud from occurring.
Originality/value - Past studies have primarily focused on GST implementation from the perspective of service tax effectiveness and efficiency. However, this study examined the impact of GST fraud to determine measures that could ensure service tax sustainability using preventive strategies, in turn, introducing to the existing literature on indirect tax.
The effect of auditor characteristics on tax avoidance of Iranian companies
2020, Journal of Asian Business and Economic Studies
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Abstract
Purpose – The purpose of this paper is to investigate the relationship between auditor characteristics and the level of tax avoidance in an emerging market.
Design/methodology/approach – In this regard, the effect of various factors such as auditor tenure, auditor industry specialization, audit reports and audit fees on tax avoidance was examined. The study sample includes listed companies in the Tehran Stock Exchange. The time period of study is six years from 2011 to 2016. Also in this study, firm size, leverage, firm age and auditor size were controlled.
Findings – The results of this research were determined in four hypotheses. First and second hypotheses that explore the relationship between auditor tenure and auditor industry specialization with tax avoidance were not confirmed. But the results showed a significant relationship between the type of audit opinions and audit fees with tax avoidance.
Originality/value – The current study investigates the auditor characteristics on tax avoidance in a developing nation of Iran and the results may helpful the developing countries.
Supplier selection criteria in Vietnam: A case study in textile and apparel industry
2020, Journal of Asian Business and Economic Studies
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Abstract
Supplier selection is a significant phase of procurement. However, a little systematic research on supplier selection criteria in the textile and apparel industry has been conducted in Vietnam. The purpose of this study is to identify criteria that constitute to the supplier selection decision of purchasers. An integrated approach involving purposeful sampling and theoretical sampling is used. Qualitative data are collected via expert interviews from 20 companies ranging from spinning to textiles to garments as well as ancillary industries in both southern and northern Vietnam. The data are analyzed using NVIVO 8.0 software. We assume that exploring the extant supplier selection criteria used by Vietnamese textile and apparel companies will contribute to the literature concerning procurement in particular and supply chain management in general.
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