The role of sanctions and incentives in improving tax enforcement: A comparative study of developing countries
DOI:
https://doi.org/10.54957/educoretax.v4i9.1127Keywords:
Incentives, Sanctions, Tax EnforcementAbstract
Tax enforcement is an important aspect of governance, and the use of sanctions and incentives plays an important role in shaping taxpayer compliance behavior. This research investigates the role of sanctions and incentives in enhancing tax enforcement in developing countries through a comprehensive literature study. By comparing strategies from advanced economies, analyzing factors influencing the effectiveness of sanctions and incentives, and exploring policy implications, the study provides valuable insights to optimize tax enforcement mechanisms. Findings highlight the importance of balancing sanctions and incentives, key factors influencing compliance behavior, and policy implications for enhancing tax enforcement in developing countries.
References
Aji, P. P. W., Astuti, D. S. P., & Widarno, B. (2016). Pengaruh Perputaran Piutang Dagang, Persediaan, dan Modal Kerja terhadap Likuiditas Perusahaan CV Surya Mandiri Solo. Jurnal Akuntansi Dan Sistem Teknologi Informasi, 12(1), 27–35.
Albert, A., & Fadjarenie, R. A. (2022). Early Tax Education: Could it change the future compliance behavior? International Journal of Evaluation and Research in Education (IJERE), 11(4), 1912–1922. https://doi.org/10.11591/ijere.v11i4.22241
Altawansy, A. K. (2024). Appropriate Incentives Towards Urban Sustainability in Developing Countries “Comparative Study.” Journal of Engineering Sciences (JES), 52(4), 464–481. https://doi.org/10.21608/JESAUN.2024.281330.1326
Andriani, E., & Tarmidi, D. (2024). Assessing the Role of Services, Incentives and Tax Knowledge Moderation on Tax Compliance. Asian Journal of Economics, Business, and Accounting, 24(4), 343–353. https://doi.org/10.9734/AJEBA/2024/v24i41285
Antinyan, A., & Asatryan, Z. (n.d.). lama Nudging for Tax Compliance: A Meta-Analysis.
Budiman, N. A., Nurkamid, M., Sriyana, J., & Akhsyim. (2022). MSME Tax Compliance During the Covid-19 Pandemic. KnE Social Sciences, 297–312. https://doi.org/10.18502/kss.v7i14.11980
De Simone, L., Stomberg, B., & Williams, B. (2023). Does tax enforcement disparately affect domestic versus multinational corporations around the world? Contemporary Accounting Research, 40(4), 2816–2845. https://doi.org/10.1111/1911-3846.12900
Fatas, E., Nosenzo, D., Sefton, M., & Zizzo, D. J. (2021). A Self-Funding Reward Mechanism for Tax Compliance. Journal of Economic Psychology, 86. https://doi.org/10.1016/j.joep.2021.102421
Favourate Y., S.-M. (2020). Governance Quality and Tax Morale and Compliance in Zimbabwe’s Informal Sector. Cogent Business & Management, 7(1), 1–21. https://doi.org/10.1080/23311975.2020.1794662
Hindriks, J., & Nishimura, Y. (2022). The Enforcement Dilemma of The Global Minimum Tax. 1–27.
Inasius, F., Darijanto, G., Gani, E., & Soepriyanto, G. (2020). Tax Compliance After the Implementation of Tax Amnesty in Indonesia. SAGE Journals, 10(4). https://doi.org/10.1177/2158244020968793
Judijanto, L. (2024). Taxation Policy and Compliance Burden on MSMEs: An In-depth Legal Study in Indonesia. International Journal of Business, Law, and Education, 5(2), 1597–1504. https://doi.org/10.56442/ijble.v5i2.618
Lasmono, E., & Urumsah, D. (2022). Investigating the Factors Influencing Tax Compliance in Online Transaction: An Empirical Study on MSMEs. The Indonesian Journal of Accounting Research, 25(1), 83–106.
Mangoting, Y., Leoni, M., & Natalia, C. (2024). How Tax Knowledge Mediates Business Performance? Jurnal Dinamika Manajemen (JDM), 15(1), 10–26.
Mason, P., & Williams, B. (2022). Does IRS Monitoring Deter Managers From Committing Accounting Fraud? Journal of Accounting, Auditing & Finance, 37(3), 700–722. https://doi.org/10.1177/0148558X20939720
Nessa, M., Schwab, C. M., Stomberg, B., & Towery, E. M. (2020). How do IRS Resources Affect the Corporate Audit Process? The Accounting Review, 95(2), 311–338. https://doi.org/10.2308/accr-52520
Nguyen, T. T. D., Pham, T. M. L., Le, T. T., Truong, T. H. L., & Tran, M. D. (2020). Determinants Influencing Tax Compliance: The Case of Vietnam. The Journal of Asian Finance, Economics and Business, 7(2), 65–73. https://doi.org/10.13106/jafeb.2020.vol7.no2.65
Orazalin, N., & Mahmood, M. (2019). Determinants of GRI-based sustainability reporting: evidence from an emerging economy. Journal of Accounting in Emerging Economies, 10(1), 140–164. https://doi.org/10.1108/JAEE-12-2018-0137
Orkaido, K., Beyene, T., Mitiku, S., & Tesiso, Y. (2024). Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone). Journal of World Economic Research, 13(1), 11–23. https://doi.org/10.11648/j.jwer.20241301.12
Primasari, N. H. (2022). Peran Norma dan Sanksi Terhadap Peningkatan Kepatuhan Pajak Sukarela dan Paksaan. Jurnal Akuntansi Indonesia (JAI), 11(1).
Radityo, D., Kalangi, L., & Gamaliel, H. (2019). Pengujian Model Kepatuhan Pajak Sukarela Pada Wajib Pajak Orang Pribadi di Kantor Pelayanan Pajak Pratama Manado. Jurnal Riset Akuntansi Dan Auditing “GOODWILL,” 10(2), 195–207. https://doi.org/10.35800/jjs.v10i2.26623
Sentanu, I. N. W., & Budiartha, K. (2019). Effect of Taxation Modernization on Tax Compliance. International Research Journal of Management, IT, and Social Sciences, 6(4), 207–213. https://doi.org/10.21744/irjmis.v6n4.683
Septiani, N. K. E. S., Hardika, N. S., & Suardani, A. A. P. (2022). The Effect of Tax Incentives, Modernization of Tax Administration and Tax Sanctions on MSME Tax Payer Compliance (Case Study at KPP Pratama Badung Utara). Journal of Applied Sciences in Accounting, Finance, and Tax, 5(2), 133–139. https://doi.org/10.31940/jasafint.v5i2.133-139
Sulistiyanti, U., & Pratidina Evi Damayanti. (2023). Individual Taxpayer’s Compliance during Covid-19 Pandemic. Jurnal Akuntansi & Auditing Indonesia, 27(1), 48–55. https://doi.org/10.20885/jaai.vol27.iss1.art5
Sun, Y. (2022). Tax Incentives, Tax Enforcement, and Enterprise R&D Investment: Evidence From Chinese A-Share Listed. Frontiers in Psychology, 13, 1–10. https://doi.org/10.3389/fpsyg.2022.953313
Supriyati, & Hapsari, I. (2021). Tax Avoidance, Tax Incentives and Tax Compliance During the Covid-19 Pandemic: Individual Knowledge Perspectives. Journal of Accounting and Strategic Finance, 4(2), 222–241. https://doi.org/10.33005/jasf.v4i2.174
Taing, H. B., & Chang, Y. (2021). Determinants of Tax Compliance Intention: Focus on the Theory of Planned Behavior. International Journal of Public Administration, 44(1), 62–73. https://doi.org/10.1080/01900692.2020.1728313
Zheng, Q., Li, J., & Duan, X. (2023). The Impact of Environmental Tax and R&D Tax Incentives on Green Innovation. Sustainability, 15(9), 1–18. https://doi.org/10.3390/su15097303
Zulma, G. W. M. (2020). Pengaruh Pengetahuan Wajib Pajak, Administrasi Pajak, Tarif Pajak dan Sanksi Perpajakan terhadap Kepatuhan Pajak Pada Pelaku Usaha UMKM di Indonesia. Ekonomis: Journal of Economics and Business, 4(2), 288–294. https://doi.org/10.33087/ekonomis.v4i2.170
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Devira Kusuma Putri, Lingga Sekar Arum, Nickyta Arcindy Duha, Harfakhriz Raisyah, Fransiskus Junior, Suparna Wijaya
This work is licensed under a Creative Commons Attribution 4.0 International License.
