HomeInternational Journal of Multidisciplinary: Applied Business and Education Researchvol. 6 no. 3 (2025)

Tax Knowledge, Tax Enforcement Efforts, and Tax Compliance among Agribusinesses in Tagum City

Honey Mae J. Barbosa | Christine Mae G. Galo | Princess Claire G. Paig | Joe Mari N. Flores

Discipline: Social Sciences

 

Abstract:

The main objective of this study is to identify the relationship between tax knowledge and tax enforcement efforts towards tax compliance of agri-business owners in Tagum City that could benefit the Agri-business owners, BIR, LGUs, Department of Agriculture (DA), and future researchers. The sample size of 259 was determined using the Slovin formula, and respondents were identified through simple random sampling. The results of this study are based on the data gathered from respondents who are managers, owners, or accounting staff of a registered agri-business through the dissemination of an adopted questionnaire authored by Twum et al. (2020) and Oladele et al. (2019) for the independent variables and Abdulazeez et al. (2018) for the dependent variable. Statistical tools used in this study are mean and Pearson r. The results of this study show that the level of tax knowledge, tax enforcement efforts, and tax compliance are all very high. In addition, the results indicate a positive significant relationship between tax knowledge and tax compliance and relationship between tax enforcement efforts and tax compliance. Thus, the null hypothesis of the two relationships in this study is rejected. The study suggests considering tax knowledge and tax enforcement efforts to improve tax compliance.



References:

  1. Devos, K. (2014). Factors influencing individual taxpayer compliance behaviour. Springer. https://doi.org/10.1007/978-981-287-113-3
  2. Hofmann, E., Hoelzl, E., & Kirchler, E. (2008). Preconditions of voluntary tax compliance: Knowledge and evaluation of taxation, norms, fairness, and motivation to cooperate. Journal of Psychology, 216(4), 209–217. https://doi.org/10.1027/0044-3409.216.4.209
  3. Kirchler, E., Hoelzl, E., & Wahl, I. (2008). Enforced versus voluntary tax compliance: The “slippery slope” framework. Journal of Economic Psychology, 29(2), 210–225. https://doi.org/10.1016/j.joep.2007.05.004
  4. McKerchar, M., & Hansford, A. (2015). Managing and regulating tax practitioners: A comparative study of the UK and Australia. Routledge. https://doi.org/10.4324/9781315774883
  5. McKerchar, M., & Evans, C. (2009). Sustaining growth in developing economies through improved taxpayer compliance: Challenges for policy makers and revenue authorities. eJournal of Tax Research, 7(2), 171–201. https://www.business.unsw.edu.au/research-site/publications-site/ejournaloftaxresearch-site/Documents/paper3_v7n2_McKerchar_Evans.pdf
  6. Modugu, K. P., Eragbhe, E., & Izedonmi, F. I. (2012). Government accountability and voluntary tax compliance in Nigeria. Research Journal of Finance and Accounting, 3(5), 69–76. https://www.iiste.org/Journals/index.php/RJFA/article/view/2074
  7. OECD. (2010). Understanding and influencing taxpayers’ compliance behaviour. OECD Publishing. https://www.oecd.org/tax/administration/46274793.pdf
  8. Palil, M. R. (2010). Tax knowledge and tax compliance determinants in self-assessment system in Malaysia [Doctoral dissertation, University of Birmingham]. http://etheses.bham.ac.uk/id/eprint/832/1/Palil10PhD_A1a.pdf
  9. Richardson, G. (2006). Determinants of tax evasion: A cross-country investigation. Journal of International Accounting, Auditing and Taxation, 15(2), 150–169. https://doi.org/10.1016/j.intaccaudtax.2006.08.005
  10. Saad, N. (2014). Tax knowledge, tax complexity and tax compliance: Taxpayers’ view. Procedia - Social and Behavioral Sciences, 109, 1069–1075. https://doi.org/10.1016/j.sbspro.2013.12.590
  11. Torgler, B. (2007). Tax compliance and morale: A theoretical and empirical analysis. Edward Elgar Publishing. https://doi.org/10.4337/9781847207203
  12. Torgler, B., & Schneider, F. (2007). Shadow economy, tax morale, governance and institutional quality: A panel analysis. IZA Discussion Paper No. 2563. https://ftp.iza.org/dp2563.pdf
  13. Torgler, B. (2003). To evade taxes or not to evade: That is the question. Journal of Socio-Economics, 32(3), 283–302. https://doi.org/10.1016/S1053-5357(03)00040-4
  14. Wenzel, M. (2005). Motivation or rationalisation? Causal relations between ethics, norms and tax compliance. Journal of Economic Psychology, 26(4), 491–508. https://doi.org/10.1016/j.joep.2004.03.003
  15. Yusof, N. A. M., Ling, L. M., & Bee, N. G. B. (2014). Tax non-compliance among SMCs in Malaysia: Tax audit evidence. Journal of Applied Accounting Research, 15(2), 215–234. https://doi.org/10.1108/JAAR-02-2013-0011
  16. Alm, J., & Torgler, B. (2006). Culture differences and tax morale in the United States and Europe. Journal of Economic Psychology, 27(2), 224–246. https://doi.org/10.1016/j.joep.2005.09.002
  17. Alm, J., McClelland, G. H., & Schulze, W. D. (1992). Why do people pay taxes? Journal of Public Economics, 48(1), 21–38. https://doi.org/10.1016/0047-2727(92)90040-M
  18. Kirchler, E. (2007). The economic psychology of tax behaviour. Cambridge University Press. https://doi.org/10.1017/CBO9780511628238
  19. Loo, E. C., McKerchar, M., & Hansford, A. (2009). Understanding the compliance behaviour of Malaysian individual taxpayers using a mixed method approach. Journal of the Australasian Tax Teachers Association, 4(1), 181–202. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2766499.
  20. OECD. (2015). Tax administration 2015: Comparative information on OECD and other advanced and emerging economies. OECD Publishing. https://doi.org/10.1787/tax_admin-2015-en