Original Research
Determinants of internal ta compliance costs: Evidence from South Africa
Journal of Economic and Financial Sciences | Vol 9, No 3 | a67 |
DOI: https://doi.org/10.4102/jef.v9i3.67
| © 2016 Sharon Smulders, Madeleine Stiglingh, Riel Franzsen, Lizelle Fletcher
| This work is licensed under CC Attribution 4.0
Submitted: 18 December 2017 | Published: 03 December 2016
Submitted: 18 December 2017 | Published: 03 December 2016
About the author(s)
Sharon Smulders, Department of Taxation, University of Pretoria, South AfricaMadeleine Stiglingh, Department of Taxation, University of Pretoria, South Africa
Riel Franzsen, African Tax Institute, University of Pretoria, South Africa
Lizelle Fletcher, Department of Statistics, University of Pretoria, South Africa
Full Text:
PDF (274KB)Abstract
Being tax compliant generates costs and these costs affect small business tax compliance behaviour and contribution. This study uses multiple regression analyses to investigate the key drivers of small business’s internal tax compliance costs (hours spent internally on tax compliance activities). This will assist Revenue Services in understanding what factors (determinants) could increase a small business’s internal tax compliance costs and might assist in managing tax compliance behaviour and contribution. The results expose the significant determinants per tax type, enabling a comparison to be made across the different tax types. Overall, turnover is the variable that had the most significant influence on internal tax compliance costs (time) (as opposed to the number of employees, which had a significant effect only on the internal time spent on employees’ tax). The analysis confirmed that there is a higher proportional burden for smaller businesses in respect of internal income tax and employees’ compliance activities.
Keywords
Internal tax compliance costs; regression analysis; small business; tax compliance burden; tax compliance costs
Metrics
Total abstract views: 2146Total article views: 1450
Crossref Citations
1. The effect of attitude and religiosity on tax compliant intention moderated by the utilization of e-Filing
Kadarisman Hidayat, Mekar Satria Utama, Umar Nimran, Arik Prasetya
Journal of Financial Services Marketing vol: 28 issue: 4 first page: 712 year: 2023
doi: 10.1057/s41264-022-00171-y