Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small Businesses
Many developing countries have implemented tax regulations for small enterprises and the simplification of tax systems in recent times. Tax compliance attitudes within this sector vary significantly due to the high cost to comply and the technical nature of tax law. Many different factors influence...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Studia Universitatis Babes-Bolyai
2024-12-01
|
| Series: | Studia Universitatis Babeş-Bolyai Negotia |
| Subjects: | |
| Online Access: | https://studia.reviste.ubbcluj.ro/index.php/subbnegotia/article/view/8641 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1846107493306990592 |
|---|---|
| author | Munyaradzi DUVE Danie SCHUTTE Manjit KOUR |
| author_facet | Munyaradzi DUVE Danie SCHUTTE Manjit KOUR |
| author_sort | Munyaradzi DUVE |
| collection | DOAJ |
| description |
Many developing countries have implemented tax regulations for small enterprises and the simplification of tax systems in recent times. Tax compliance attitudes within this sector vary significantly due to the high cost to comply and the technical nature of tax law. Many different factors influence presumptive tax compliance and previous research did not necessarily identify the determinants of this phenomenon. Two hundred and nineteen small business owners/managers participated in the study. The validation of the measurement model and the structural model was performed using the Partial-Least Squares Structural Equation Model. The study evaluated the impact of tax morale, corruption and taxpayer/tax office relationships on presumptive tax compliance in the Zimbabwean context. It was found that corruption significantly influences small business operators’ compliance levels under a presumptive tax system. Significant differences were found in small business owners and managers who differed in their perceptions of their relationships with the tax office. The results of this study would assist tax authorities in understanding small businesses’ perceptions when reviewing the current presumptive tax systems.
JEL classification: H20, H29
Article History: Received: June 28, 2024; Reviewed: September 5, 2024;
Accepted: November 11, 2024; Available online: December 17, 2024.
|
| format | Article |
| id | doaj-art-7772aa81d21842c6bfd5ebc99ce547a8 |
| institution | Kabale University |
| issn | 2065-9636 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Studia Universitatis Babes-Bolyai |
| record_format | Article |
| series | Studia Universitatis Babeş-Bolyai Negotia |
| spelling | doaj-art-7772aa81d21842c6bfd5ebc99ce547a82024-12-26T10:57:13ZengStudia Universitatis Babes-BolyaiStudia Universitatis Babeş-Bolyai Negotia2065-96362024-12-0169410.24193/subbnegotia.2024.4.02Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small BusinessesMunyaradzi DUVE0https://orcid.org/0000-0003-3070-4028Danie SCHUTTE1https://orcid.org/0009-0007-3514-5911Manjit KOUR2https://orcid.org/0000-0003-1043-3187Great Zimbabwe University, Zimbabwe. Email: mduve@gzu.ac.zwNorth-West University, South Africa. Corresponding author: danie.schutte@nwu.ac.zaChandigarh University, India. Email: manjuz_99@yahoo.com Many developing countries have implemented tax regulations for small enterprises and the simplification of tax systems in recent times. Tax compliance attitudes within this sector vary significantly due to the high cost to comply and the technical nature of tax law. Many different factors influence presumptive tax compliance and previous research did not necessarily identify the determinants of this phenomenon. Two hundred and nineteen small business owners/managers participated in the study. The validation of the measurement model and the structural model was performed using the Partial-Least Squares Structural Equation Model. The study evaluated the impact of tax morale, corruption and taxpayer/tax office relationships on presumptive tax compliance in the Zimbabwean context. It was found that corruption significantly influences small business operators’ compliance levels under a presumptive tax system. Significant differences were found in small business owners and managers who differed in their perceptions of their relationships with the tax office. The results of this study would assist tax authorities in understanding small businesses’ perceptions when reviewing the current presumptive tax systems. JEL classification: H20, H29 Article History: Received: June 28, 2024; Reviewed: September 5, 2024; Accepted: November 11, 2024; Available online: December 17, 2024. https://studia.reviste.ubbcluj.ro/index.php/subbnegotia/article/view/8641tax moraletax compliancecorruptiontax office relationshipspresumptive taxation |
| spellingShingle | Munyaradzi DUVE Danie SCHUTTE Manjit KOUR Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small Businesses Studia Universitatis Babeş-Bolyai Negotia tax morale tax compliance corruption tax office relationships presumptive taxation |
| title | Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small Businesses |
| title_full | Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small Businesses |
| title_fullStr | Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small Businesses |
| title_full_unstemmed | Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small Businesses |
| title_short | Determinants of Small Business Tax Compliance Behaviour: Evidence From Zimbabwean Small Businesses |
| title_sort | determinants of small business tax compliance behaviour evidence from zimbabwean small businesses |
| topic | tax morale tax compliance corruption tax office relationships presumptive taxation |
| url | https://studia.reviste.ubbcluj.ro/index.php/subbnegotia/article/view/8641 |
| work_keys_str_mv | AT munyaradziduve determinantsofsmallbusinesstaxcompliancebehaviourevidencefromzimbabweansmallbusinesses AT danieschutte determinantsofsmallbusinesstaxcompliancebehaviourevidencefromzimbabweansmallbusinesses AT manjitkour determinantsofsmallbusinesstaxcompliancebehaviourevidencefromzimbabweansmallbusinesses |