IDEAS home Printed from https://ideas.repec.org/a/vrs/ecobus/v33y2019i1p35-49n3.html
   My bibliography  Save this article

Examining Different Factors of Income Tax Non-Compliance in a Small Sample in Bangladesh

Author

Listed:
  • In Tishar Ashir

    (Unnayan Shamannay,Dhaka, Bangladesh)

  • Hasanuzzaman Syed

    (Shahjalal University of Science & Technology,Sylhet, Bangladesh)

Abstract

Income tax non-compliance is worldwide delinquent and with the small volume of income tax collection Bangladesh has been facing its demerits for a long time. There is still a gap to measure income tax non-compliance behaviour in a micro direct approach. This study uses EVSCALE instrument to calculate the individual income tax non-compliance as a latent variable. The instrument consists of 15 items in Likert scale to measure the non-compliance behaviour of a person. The objective of this study is to identify the determinants of income tax non-compliance and key factors of EVSCALE in Bangladesh. The study collected opinions of taxpayers by primary data collection following a convenient sampling method. Logit regression analysis finds out that log monthly income, tax morale, tax education and occupation significantly influence income tax non-compliance. Exploratory factor analysis identifies six key factors that have consistency and shared variance. However, Cronbach’s alpha shows that five key factors have high reliability among six factors. According to rules of thumb, this study suggests that EVSCALE instrument needs modification by adding more items. This study argues that increasing participation in taxation system is a feasible policy for government instead of increasing tax rate.

Suggested Citation

  • In Tishar Ashir & Hasanuzzaman Syed, 2019. "Examining Different Factors of Income Tax Non-Compliance in a Small Sample in Bangladesh," Economics and Business, Sciendo, vol. 33(1), pages 35-49, February.
    • Handle: RePEc:vrs:ecobus:v:33:y:2019:i:1:p:35-49:n:3
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/eb.2019.33.issue-1/eb-2019-0003/eb-2019-0003.xml?format=INT
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:ecobus:v:33:y:2019:i:1:p:35-49:n:3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.