The Role of Income Tax System Structure in Tax Non-Compliance Behaviour Among SMEs in Yemen
Tax is the main source of government revenue. However, a number of countries worldwide are increasingly besieged by challenges regarding compliance levels with the rules of tax systems. Thus, this paper aims to enhance an understanding of tax non-compliance behaviour by investigating the effect of t...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
UUM Press
2021
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/29216/1/IJBF%2016%2002%202021%2023-49.pdf https://doi.org/10.32890/ijbf2021.16.2.2 https://repo.uum.edu.my/id/eprint/29216/ https://e-journal.uum.edu.my/index.php/ijbf/article/view/11982 https://doi.org/10.32890/ijbf2021.16.2.2 |
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| Institution: | Universiti Utara Malaysia |
| Language: | English |
| Summary: | Tax is the main source of government revenue. However, a number of countries worldwide are increasingly besieged by challenges regarding compliance levels with the rules of tax systems. Thus, this paper aims to enhance an understanding of tax non-compliance behaviour by investigating the effect of the income tax system structure on Yemeni taxpayers’ behaviour. The study focuses on income tax compliance behaviour of owner-managers of small and medium enterprises (SMEs), as the Yemeni economy relies heavily on this sector. The SME sector represents 99.6 percent of business in Yemen. Based on a quantitative approach using a self-administered survey instrument, a total of 330 valid questionnaires were collected and the feedback provided analyzed. The results demonstrate that SME taxpayers exhibited a high level of tax non-compliance. Furthermore, the multiple regression analysis shows that the tax rate had a positive and significant influence on tax non-compliance behaviour, but the tax penalties rate did not. These results can be especially relevant to policymakers and practitioners of tax systems structures, particularly in a developing country such as Yemen. |
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