The Effects of Deterrence Factors on Income Tax Evasion among Palestinian SMEs
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2018, Vol 8, Issue 4
Abstract
Tax evasion remains an issue confronting most policy makers worldwide. Palestine, as an evolving developing country highly depends on tax revenue and funds from international aids to finance the country’s growth plan. The current study aims at examining relationships between probability of detection, tax penalty, tax rate and income tax evasion by applying the Deterrence Theory. A proportionate sampling technique was employed to collect data for the study through the use of questionnaires. The total number of useable questionnaires collected for analysis was 184. The collected data were analysed using the Partial Least Square (PLS). The result of analysed data shows that probability of detection and tax penalty were found to be negatively significant, while tax rate was positively significant in relation to income tax evasion. The implication of the findings of the current study is that income tax administration effectiveness can maximize tax collections and discourage tax evasion.
Authors and Affiliations
Amjad Abdallah Alkhatib, Hijattulah Abdul-Jabbar, Munusamy Marimuthu
Strategic Management Accounting and the Dimensions of Competitive Advantage: Testing the Associations in Saudi Industrial Sector
In the last decade, many dramatic changes in the organizations’ environment have led to fundamental transformations in the framework of management accounting practices; specifically the shift toward practicing its functi...
The Level at which Accounting Professors Use Information Technology at Universities
Functions and Reliability of International Financial Reporting Systems of Rural Smes in Kwazulu Natal: Knowledge and Understanding of Financial Management
A review of the understanding of the functions and reliability of International Financial Reporting Systems applied by rural SMEs in KwaZulu Natal (KZN) will determine the level of knowledge and understanding in the use...
The Socio-Economic Impact of Urbanization
The process of urbanization represents the increase in the proportion of people living in towns and cities as a result of people movement from rural areas to urban areas. Urbanization is widely accepted as a process with...
Share Repurchasing and the Policies of Stock-Options
The objective of this paper is to examine the relation between share repurchases and stock options. In fact, certain studies demonstrate that the development of stock option plans since the beginning of the 1990s is also...