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Determining the Level of Tax Awareness and Factors Affecting Tax Compliance of Ready-to-Wear Businesses in Solano, Nueva Vizcaya 3709

Author

Listed:
  • Cureg, Angie G.

    (Saint Mary’s University, Bayombong, Nueva Vizcaya, Philippines)

  • Larida, Altriyelle Aubrey P.

    (Saint Mary’s University, Bayombong, Nueva Vizcaya, Philippines)

  • Mangili, Harlyn May N.

    (Saint Mary’s University, Bayombong, Nueva Vizcaya, Philippines)

  • Madroñal, Christopher D.

    (Saint Mary’s University, Bayombong, Nueva Vizcaya, Philippines)

  • Santos, Brod Lee B.

    (Saint Mary’s University, Bayombong, Nueva Vizcaya, Philippines)

  • Mania, Jeanette R.

    (Saint Mary’s University, Bayombong, Nueva Vizcaya, Philippines)

Abstract

The paper explored the intricacies of tax awareness and compliance among Ready-to-Wear (RTW) businesses that fall under the category of micro enterprises in Solano, Nueva Vizcaya, Philippines. The study employed theories of compliance and awareness as its conceptual framework, aiming to identify the factors that influence tax compliance and awareness among these businesses. It considered various demographic variables such as age, educational attainment, gender, and years in business operation as potential influencers. The study utilized a descriptive-comparative research design and collected data through a survey questionnaire. The findings indicate that the respondents have a high level of awareness of their tax rights and responsibilities, particularly regarding issuing receipts and invoices. However, they may need more understanding of tax return filing dates and timely tax payments. The factors influencing tax compliance include fines and penalties, the probability of being audited, financial constraints, tax knowledge, and peer influence. Non-compliance reasons include unawareness of laws, financial burden, and high tax rates. Recommendations include simplifying procedures, reducing tax rates, and improving tax education through socialization efforts. The study also highlights the importance of fines and penalties in promoting tax compliance. The paper is significant not just for tax authorities but also for the businesses themselves, offering them a clearer understanding of the importance of tax compliance and the implications of non-compliance. Overall, the paper serves as a multi-faceted exploration into the realm of taxation among micro enterprises, with a specific focus on the RTW businesses in Solano, Nueva Vizcaya.

Suggested Citation

  • Cureg, Angie G. & Larida, Altriyelle Aubrey P. & Mangili, Harlyn May N. & Madroñal, Christopher D. & Santos, Brod Lee B. & Mania, Jeanette R., 2024. "Determining the Level of Tax Awareness and Factors Affecting Tax Compliance of Ready-to-Wear Businesses in Solano, Nueva Vizcaya 3709," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(4), pages 797-823, April.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:4:p:797-823
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    References listed on IDEAS

    as
    1. Vince Ratnawati & Ria Nelly Sari & Zuraidah Mohd Sanusi, 2019. "Education, Service Quality, Accountability, Awareness, and Taxpayer Compliance: Individual Taxpayer Perception," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(5), pages 420-429, August.
    2. James Alm & Benno Torgler, 2011. "Do Ethics Matter? Tax Compliance and Morality," Journal of Business Ethics, Springer, vol. 101(4), pages 635-651, July.
    3. Nadiah Abd Hamid & Nur Ain Ibrahim & Nur Aini Ibrahim & Noratikah Ariffin & Raudah Taharin & Fatin Amira Jelani, 2019. "Factors Affecting Tax Compliance among Malaysian SMEs in E-Commerce Business," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 74-85, January.
    4. Kastlunger, Barbara & Dressler, Stefan G. & Kirchler, Erich & Mittone, Luigi & Voracek, Martin, 2010. "Sex differences in tax compliance: Differentiating between demographic sex, gender-role orientation, and prenatal masculinization (2D:4D)," Journal of Economic Psychology, Elsevier, vol. 31(4), pages 542-552, August.
    5. Nadiah Abd Hamid & Nur Ain Ibrahim & Nur Aini Ibrahim & Noratikah Ariffin & Raudah Taharin & Fatin Amira Jelani, 2019. "Factors Affecting Tax Compliance among Malaysian SMEs in E-Commerce Business," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(1), pages 74-85.
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