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- Title
SOCIAL BEHAVIOUR TOWARDS TAX PAYMENT: A SURVEYBASED EVIDENCE FROM SADC COUNTRIES.
- Authors
Ul Islam KHAN, Asad; IBRAHIM, Mahat Maalim; KAPLAN, Muhittin
- Abstract
Tax non-compliance and its consequences have become a subject of increasing interest in academic literature and economic forums worldwide. While most studies on this issue focus on developed countries, there is a growing trend to explore understudied developing countries. To fill this gap, we investigated tax evasion drivers in eight Southern African Development Community (SADC) countries, using the round 7 Afrobarometer survey data conducted in 2019-2020. The survey's comprehensive coverage of economic, political, and sociological questions made it one of the most extensive surveys on the continent. We used logistic regression and Empirical Bayesian estimation and found that political legitimacy significantly influences tax evasion behavior in the SADC region. Individuals residing within the SADC are more likely to engage in tax evasion activities when they perceive a lack of access to fundamental services provided by their governments or harbor doubts about the legitimacy of political institutions. Therefore, policymakers in SADC member states should prioritize reviewing and evaluating economic policies, the performance and efficiency of political institutions, and more inclusive governance. We suggest that a strong and legitimate political framework, coupled with effective service delivery, can contribute to reducing tax evasion rates and enhancing public welfare outcomes. Institutional reforms, increased transparency, accountability, and a more inclusive governance system are necessary for fostering a culture of compliance and trust, leading to improved revenue collection.
- Subjects
TAX evasion; PUBLIC welfare; NONCOMPLIANCE; LOGISTIC regression analysis; TAXPAYER compliance; SOUTHERN African Development Community
- Publication
Akademik Hassasiyetler, 2023, Vol 10, Issue 22, p309
- ISSN
2148-5933
- Publication type
Article