...the fringe of the formal economy, with only loose connections to the formal tax and regulatory apparatus of the state. Their activities are often labor intensive, meaning fewer interactions with market traders of tangible goods who may be in the tax net; they rely disproportionately on cash transactions; there are few opportunities for third-party verification; and they have poor bookkeeping practices. Tax policy is often uniquely designed for small enterprises, The smallest firms frequently rely heavily on the labor of the entrepreneur and her family. Revenue mobilization in developing countries is challenging and especially so when it comes to generating taxes from small enterprises. This represents a conundrum for policymakers and tax administrators. On the one hand there is a compelling need for revenues to meet spending and social objectives including some semblance of fairness in taxation. At the same time it is widely recognized that in many countries the cost of revenue mobilization from (at least some) small firms—including both administration and compliance costs—exceeds revenue potential. So even if policymakers decide to seek to tax small enterprises, the tax administration may have little enthusiasm for diverting resources from other seemingly more productive uses to enforce taxation of the small.and compliance costs—exceeds revenue potential. So even if policymakers decide to seek to tax small enterprises, the...
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...2. Literature Review Prior tax compliance research has largely ignored low-income individual taxpayers such as smallholder farmers taxpayers.This study extends and complements existing tax research by examining the compliance intentions of low-income individual taxpayers. Relying on the different theory of tax compliance behaviour, we examine the extent to which agricultural tax affect tax compliance intentions. According to Besley & Persson (2014), one reason why low-income countries have lesser levels of taxation may be a weaker ethic of tax compliance than the one that has evolved in high-income countries. So the absence of a strong compliance norm may result in less revenue than would otherwise be expected. Fjeldstad & Heggstad, (2012)...
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...TAX COMPETENCIES, COMPLIANCE COSTS AND INCOME TAX COMPLIANCE AMONG SMEs IN UGANDA BY ANNET NAKIWALA 2007/HD10/11264U A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT S FOR THE AWARD OF THE DEGREE OF MASTER OF SCIENCE IN ACCOUNTING AND FINANCE OF MAKERERE UNIVERSITY September, 2010 TAXCOMPETENCIES, COMPLIANCE COSTS & INCOME TAX COMPLIANCE DECLARATION I, Annet Nakiwala, declare that this dissertation is my own work and that it has never been presented for a degree award at any other university. Signature: ………………………………………… Date: ……………………………………………… ii TAXCOMPETENCIES, COMPLIANCE COSTS & INCOME TAX COMPLIANCE APPROVAL This is to certify that this dissertation has been submitted in partial fulfillment of the requirement for the award of a Masters of Science degree in Accounting and Finance of Makerere University with my approval as University Supervisor. Joseph Ntayi (PhD) Supervisor Signature: ………………… Date: ……………………… Arthur Sserwanga Supervisor Signature: ………………… Date: …………………….. iii TAXCOMPETENCIES, COMPLIANCE COSTS & INCOME TAX COMPLIANCE DEDICATION I dedicate this entire effort to my late Mother Gorreth Nabagereka. We miss you dearly. iv TAXCOMPETENCIES, COMPLIANCE COSTS & INCOME TAX COMPLIANCE ACKNOWLEDGEMENTS Completion of this research has been a result of both direct and indirect support of many people to whom I owe acknowledgement. I owe profound gratitude to my supervisors Dr. Joseph Ntayi and...
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...developed nations. Tax refers to a “compulsory levy by a public authority for which nothing is received directly in return” (James and Nobes, 1992). According to Nightingale (2001), “a tax is compulsory contribution, imposed by government, and while taxpayers may receive nothing identifiable in return for their contribution, they nevertheless have the benefit of living in a relatively educated, healthy and safe society”. She further explains that taxation is part of the price to be paid for an organized society and identified six reasons for taxation: provision of public goods, redistribution of income and wealth, promotion of social and economic welfare, economic stability and harmonization and regulation. In other words, a tax is an imposed levy by the government against the income, profits, property, wealth and consumption of individuals and corporate organizations to enable government obtain the required revenue to provide basic amenities, security and well-being of the citizens. First detailed information about taxation can be found in Ancient Egypt (Webber and Wildavsky, 1986). The Pharaohs appointed tax collectors (called scribes) and paid them high salaries to reduce the incentives to enrich themselves. Furthermore, scribes working in the field were controlled by a group of special scribes from head office. Today, corruption of the tax agency is still a problem, especially in developing countries According to the traditional model of tax compliance by Allingham and...
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...| Improvement of Corporate Tax Audit: Factor of Increasing Tax Compliance in Malaysia | | Table of Contents Executive Summary 3 Introduction………………………………………………………………………………………..4 Tax Compliance, Tax Evasion and Tax Audit…………………………………………………….4 Tax Audit in Malaysia…………………………………………………………………………….6 Organization Structure…………………………………………………………………………….8 Tax Audit Process…………………………………………………………………………………9 Tax Audit: Constraints and Problems……………………………………………………………11 Recommendations………………………………………………………………………………..16 Conclusion……………………………………………………………………………………….18 References……………………………………………………………………………………….19 Appendix………………………………………………………………………………………...20 Executive Summary The Malaysian tax system follows the concept of self-assessment system (SAS). Under the SAS, the government trusts and gives taxpayers full responsibility to calculate, to pay and to report their tax due on their own. The success of SAS not only depends on the good tax administration but also depends on the taxpayer awareness, which is indicated by the taxpayer compliance in fulfilling his obligation. In order to enhance the level of tax compliance, the Inland Revenue Board of Malaysia (IRBM) considers that it can be achieved by law enforcement besides tax consultation and tax service. Law enforcement comprises of tax audit, tax investigation and tax collection. Tax audit becomes important since it can cause a deterrent effect to increase taxpayer compliance. Tax audit plays an important role in determining the...
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...Published by Canadian Center of Science and Education Elements of Compliance Costs: Lesson from Malaysian Companies towards Goods and Services Tax (GST) Mohd Rizal Palil1, Rosiati Ramli1, Ahmad Fariq Mustapha1 & Norul Syuhada Abu Hassan1 1 School of Accounting, University Kebangsaan Malaysia, Malaysia Correspondence: Mohd Rizal Palil, School of Accounting, Faculty of Economics and Management, University Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia. E-mail: mr_palil@ukm.my Received: May 6, 2013 Accepted: June 20, 2013 Online Published: August 30, 2013 doi:10.5539/ass.v9n11p135 Abstract URL: http://dx.doi.org/10.5539/ass.v9n11p135 Various parties including academics, professionals and the society (the potential GST payers) are arguing about the introduction of GST in Malaysia. Goods and Services Tax (GST) or Value Added Tax (VAT) is a consumption tax imposed on the sale of goods and services. The Malaysian government introduce this potential tax mechanism, in order to increase the existing tax bracket and replacing the long-implemented service and sales taxes. With the introduction of GST, the Malaysian government felt it would provide them with the prospect to reduce the rates of individual and corporate income tax. However, do all companies particularly small and medium enterprises (Companies) ready to adopt the systems efficiently? If they could adopt the system, how much their compliance costs involved such as developing new software, human resource training...
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...A. Compliance Status The following executive summary focuses not only on the identified gaps in the current process, but also the corrective action plan to support compliance in the noted areas of the Communications Standards as provided by The Joint Commission, (National Patient Safety Goals, 2013). The high risk associated with surgical procedures performed on the wrong site has driven a risk mitigating approach to the processes involved for these procedures. The goal is to prevent harm to patients having a surgical procedure. The following summary is the current compliance status if the Priority Focus Area of Communication for Nightingale Community Hospital. After review of the specific areas identified in the Priority Focus Area, the following have been identified as requiring further attention: time-outs are routinely performed prior to every procedure (UP 01.03.01) and procedure site is marked (UP 01.02.01). Based on the evaluation of the Nightingale Community Hospital National Patient Safety Goals for Communications the current compliance rate related to the Universal Protocol Time-Out processes performed hospital wide indicate a 95% to 100% compliance rate for the year. The graph provided in the Nightingale Community Hospital National Patient Safety Goals Communication assessment provides limited information as these are hospital wide percentages. No unit specific evaluations of performance have been provided in the report. Upon review of the Site Identification and...
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...Effectiveness of Compliance Programs Pradeep Parakh, Mumbai, India Why to have a Compliance Plan • Heightened scrutiny by regulators • Avoid problems before they occur • Improved effectiveness of organization The Importance of Compliance • Compliance provides stability in revenue • Compliance uncovers inadvertent errors which can be corrected before they create huge problems for the entity • Compliance allows continued service to consumers because paybacks and penalties can impact the delivery of future services • Compliance leads to a better relationship with regulators and those who have dealings with the entity Compliance Programs Must Have Substance • As evident by recent legislation, the focus of regulators is shifting from a focus on the presence of a compliance program to evidence that demonstrates the effectiveness of the compliance program • Regulators asks question such as – “Can you prove that your compliance program works?” Elements of Effective Compliance Plan • Written policies and procedures • Compliance Officer • Training and education . . . including . . .governing body members • Communication lines to the Compliance Officer • Disciplinary policies • Internal audits and, as appropriate, external audits • Response and investigation Types of Compliance Programs People Measure • • • • • • • • Security compliance Regulatory compliance Listing compliance Environmental compliance Safety compliance Quality control compliance Privacy compliance Tax compliance Counts...
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...Evaluation Of A Business Code Of Ethics YourFirstName YourLastName University title Introduction A chief executive officer cannot simply make the decision that is best for her without considering the interests of other employees, stockholders, customers, suppliers, creditors, and so forth. Integrity is the cornerstone of ethical business practices. Failure to build a business on integrity carries costs. For example, deceptive business practices may harm a company's standing in the community, decrease employee productivity, reduce customer loyalty, build resentment among employees, increase the likelihood of further unethical behavior by employees, and cause scrutiny by government agencies. Although the costs of some of these consequences are difficult to quantify, there is no doubt that they can be substantial. Evaluate chosen strategy King and Spalding is a legal firm that was founded in 1885, Atlanta. It has a total of 800 lawyers across the U.S, Europe, Asia and Middle East. Ethics Programs Companies frequently create ethics programs to establish and help maintain an ethical business environment. Some of the most common elements of ethics pro-grams at King & Spalding include written codes of ethics, employee hotlines and ethics call centers, ethics training, processes to register anonymous complaints about wrongdoing, and ethics offices. Ethics programs may include any combination of these elements. However, according to a recent survey, an ethics program...
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...Ethics and Compliance David Livingston, Raul Lopez, Robert Morrison, Tyler Norwood FIN/370 Finance for Business University of Phoenix May 7, 2011 Joe Brennan Ethics and Compliance Even though there are federal rules and regulations governing work place behavior, what if there were no boundaries for ethics and compliance, would Amazon continue to follow the same procedures set by the federal laws to ensure ethical behavior within the work place. How does Amazon differ from other organizations when it comes to ethical behavior? One way is because Amazon adheres to a strict conflict of interest policy regarding customers, employees, and Amazon follows strict policies on record keeping and financial integrity. Team C will depict Amazon’s policy and procedures for ethical and SEC compliance, explain the function of monetary markets in the United States, and assess Amazon’s monetary performance for the previous two years by means of financial ratios. Team C will explain Amazon’s financial health in reference to the debt, return of equity, and daily receivable ratios. As part of their code of business conduct and ethics policies, Amazon established basic guiding principles to help steer their employees to do what is ethically and morally right to reassure their investors that they are doing what is right for the investors and the public. Of course Amazon must be in compliance with the governing (a) laws, (b) rules and (c) regulations set forth by local and federal governments...
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...CODE OF ETHICS Compliance is the responsibility of all the Company’s directors, officers, managers, and employees.(Capital One,2011). One is responsible for learning the details of the policies, procedures, laws and regulations applicable to one's job and for seeking guidance when needed. It is important to avoid misconduct that violates the law, this Code, or Company policies, but also the appearance of impropriety. The point, which a subject is not explicitly explained in this Code, does not relieve an employee of their responsibility to maintain the highest ethical standards under all circumstances. If one has any concern about whether their actions or inactions could violate a law, it should be discussed with their manager. While no Code of Ethics can or should replace thoughtful behavior or common sense, it can help cultivate a culture that values and rewards honesty, integrity, and accountability. (Avon, n.d.). The principles detailed in the Code will guide in “doing the right thing” and in preserving the Company’s reputation for acting with integrity at all times. TRADE REGULATION Most states have enacted trade regulation laws to ensure fair competition. These laws prohibit price-fixing and other "anti-competitive agreements, deceptive acts, and unfair competitive methods." (Pension Consulting, n.d.). Some forms of joint activities are legally permissible, but others are not. Under no circumstances, should you illegally or improperly...
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...encourages greater ethical accountability for companies to demonstrate they are abiding by the law and have established programs to improve their ethical decision making. The U.S. Sentencing Commission (the “Commission) has amended the Federal Sentencing Guidelines for Organizations (“FSGO”) whereby an effective compliance and ethics program must “exercise due diligence to prevent, detect, and report criminal conduct and otherwise promote an organizational culture that encourages ethical conduct and a commitment to compliance with all applicable law." The Commission noted there are seven minimum requirements of an effective ethics program, standards and procedures to prevent and detect criminal conduct; Responsibility at all levels of the program, together with adequate program resources and authority for its managers; Due diligence in hiring and assigning personnel to positions with substantial authority; Communicating standards and procedures, including a specific requirement for training at all levels; Monitoring, auditing, and non-retaliatory internal guidance/reporting systems, including periodic evaluation of program effectiveness; Promotion and enforcement of compliance and ethical conduct; and taking reasonable steps to respond appropriately and prevent further misconduct upon detecting a violation. Better business bureau torch award audit process The Better...
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...Compliance Interview and Report Assignment BA 3301 Legal Environment of Business Associate Professor Lee Usnick, JD I. ASSIGNMENT OVERVIEW Virtually all business activities conducted in the United States are highly regulated, not only by governmental entities, but by professional entities as well. Compliance with all federal, state, and local laws and regulations is a prerequisite to the long term health and survival of a business. Also important is compliance with standards issued by the professional and accrediting bodies responsible for licensing and certification. Certain industries are more regulated than others. For example, health care, financial services, and public utilities are all highly regulated with extensive licensing and operational standards. When a business fails to comply with all applicable regulations and standards, the business and the individuals who manage it can face a variety of sanctions, from loss of license and program certification, to civil and criminal sanctions including monetary penalties and prison. In this assignment, you will learn how a person working in your selected industry meets the challenges of current compliance requirements. It is not necessary to address all aspects of compliance in this industry or selected company. Rather, you should educate yourself in broad terms about the kinds of governmental and industry standards covering your interviewee's business, then select a few key aspects to explore in depth with your...
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...Psychological motivation of tax payers Tax compliance has been linked heavily with deterrence as the most important compliance-increasing factor but now a days importance of tax morale is being considered as intrinsic motivational toll for the honestly pay taxes. Tax morale , however, depends on the positive interaction of individual taxpayers and the taxing authority through fiscal exchange in a broader arena . Fiscal exchange, for example, may involve adequate provision of public services for the tax payers rather than purely monetary rewards which may be influenced by political decisions or by the way tax authorities treat tax payers in course assessment of the tax liability of an assessee. The relationship between the taxpayers and the taxing authority should be an as an implicit or “psychological tax contract”, under which the taxing authority must balance strategies of deterrence with those of responsive regulation. Tax compliance has many facets. The wealthy tax payers refrain from declaring their income physically earned in foreign countries mostly earned through non declaration or less declaration of commission on foreign trade and the wealth legally in foreign countries in the name of “second home” which is far from providing a comprehensive picture of their income and wealth as well. Tax non-compliance may also be generated through under reporting of income by relatively less wealthy tax payers when they work in shadow economy i.e. when they work in...
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...assists individuals and nonprofits with their tax and compliance relative needs. I. Company background: Sommervile & Associates, P.C was incorporated in 2002 under the name Ratliff & Sommerville, P.C. The firms split in 2009 into Sommerville & Associates, P.C doing tax practice and Ratliff & Associates, P.C doing financial statement practice. The firm’s operating philosophy is that highly trained professionals work directly with clients to bring immediate impact to the issues. The firm endeavors specifically to train staff to be knowledgeable in areas of our practice involving our nonprofit clientele. It is with intentional thought and intent that the firm has specifically chosen to focus our practice in this particular area in order to provide the highest level of service to the clients. The tax team prepares Forms 990 which is one of an organization’s most powerful public relations tools. Therefore, it must be prepared in a manner that has a positive impact on all other readers and users of the Form 990. Additionally, the Form 990 provides the platform necessary to review an organization’s operations for compliance with certain federal and states rules and regulations. All Forms 990 are reviewed by Elaine Sommerville prior to issuance to the client in addition to being prepared and reviewed by other members of our team of seasoned preparers. The firm strongly believes in educating those who work with and for tax exempt...
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