IDEAS home Printed from https://ideas.repec.org/a/aif/journl/v4y2020i7p76-90.html
   My bibliography  Save this article

The Impact of Tax Administration on Tax Compliance Levels in Fako Division of the Southwest Region of Cameroon

Author

Listed:
  • Alain Vilard Ndi Isoh

    (Department of Business Management and Finance, ICT University; Director of Studies, Cardiff Metropolitan University Wales UK.)

  • Forbe Hodu Ngangnchi

    (Department of Management and Entrepreneurship, The University of Bamenda, Bamenda-Cameroon)

  • Ndifongong Ferdinand Nsanyui

    (Department of Finance and Accounting, HIMS Buea Cameroon.)

  • Sheku Ahmed Fofanah

    (Deputy Director and Research Programs Leader; London School of Commerce, UK.)

Abstract

Tax noncompliance is one of the biggest challenges faced by tax administrators when collecting tax revenues. Despite a series of punitive and coercive measures put in place by most governments including Cameroon, the phenomenon persists with billions of dollars lost every fiscal year. It is on this premise that this study examines the impact of tax education, tax policies and tax audit on the level of tax compliance in Fako Division of the Southwest Region of Cameroon. The research adopted a conclusive case study design supported by the philosophical underpinnings of positivism epistemology and objectivism ontology. Multistage sampling technique was used to source data from a sample of 307 participants using semi-structured questionnaires measured using the five-point Likert scales. Exploratory and confirmatory factor analyses were conducted to reduce the dimension of the data. Structural Equation Modeling (SEM) was used to test hypotheses. Results from the study revealed that there is significant statistical evidence to suggest that the existing tax policies in Fako Division has positive impact on the level of tax compliance with [µ = 0.00

Suggested Citation

  • Alain Vilard Ndi Isoh & Forbe Hodu Ngangnchi & Ndifongong Ferdinand Nsanyui & Sheku Ahmed Fofanah, 2020. "The Impact of Tax Administration on Tax Compliance Levels in Fako Division of the Southwest Region of Cameroon," International Journal of Science and Business, IJSAB International, vol. 4(7), pages 76-90.
    • Handle: RePEc:aif:journl:v:4:y:2020:i:7:p:76-90
    as

    Download full text from publisher

    File URL: https://ijsab.com/wp-content/uploads/570.pdf
    Download Restriction: no
    File URL: https://ijsab.com/volume-4-issue-7/3088
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bruno S. Frey & Lars P. Feld, 2002. "Deterrence and Morale in Taxation: An Empirical Analysis," CESifo Working Paper Series 760, CESifo.
    2. Baldry, Jonathan C, 1987. "Income Tax Evasion and the Tax Schedule: Some Experimental Results," Public Finance = Finances publiques, , vol. 42(3), pages 357-383.
    3. James Andreoni & Brian Erard & Jonathan Feinstein, 1998. "Tax Compliance," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 818-860, June.
    4. Ortega, Daniel & Sanguinetti, Pablo, 2013. "Deterrence and reciprocity effects on tax compliance: experimental evidence from Venezuela," Research Department working papers 253, CAF Development Bank Of Latinamerica.
    5. Hasseldine, D. John & Bebbington, K. Jan, 1991. "Blending economic deterrence and fiscal psychology models in the design of responses to tax evasion: The New Zealand experience," Journal of Economic Psychology, Elsevier, vol. 12(2), pages 299-324, June.
    6. Gitaru, Kelvin, 2017. "The Effect of Taxpayer Education on Tax Compliance in Kenya.( a case study of SME's in Nairobi Central Business District)," MPRA Paper 80344, University Library of Munich, Germany.
    7. Wang, Leonard F.S. & Conant, John L., 1988. "Corporate Tax Evasion and Output Decisions of the Uncertain Monopolist," National Tax Journal, National Tax Association;National Tax Journal, vol. 41(4), pages 579-581, December.
    8. Virmani, Arvind, 1989. "Indirect tax evasion and production efficiency," Journal of Public Economics, Elsevier, vol. 39(2), pages 223-237, July.
    9. James Alm, 2014. "Expanding the theory of tax compliance from individual to group motivations," Chapters, in: Francesco Forte & Ram Mudambi & Pietro Maria Navarra (ed.), A Handbook of Alternative Theories of Public Economics, chapter 12, pages 260-277, Edward Elgar Publishing.
    10. Wang, Leonard F.S. & Conant, John L., 1988. "Corporate Tax Evasion and Output Decisions of the Uncertain Monopolist," National Tax Journal, National Tax Association, vol. 41(4), pages 579-81, December.
    11. Kirchler,Erich, 2007. "The Economic Psychology of Tax Behaviour," Cambridge Books, Cambridge University Press, number 9780521876742, September.
    12. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leopoldo Fergusson & Carlos Molina & Juan Felipe Riaño, 2019. "Consumers as VAT “Evaders”: Incidence, Social Bias, and Correlates in Colombia," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Spring 20), pages 21-67, April.
    2. Lovemore George Mwanandi, 2020. "Impact of Auditing on VAT Compliance: A case study of small VAT operators in Blantyre City of Malawi," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 4(11), pages 326-343, November.
    3. Frank A Cowell, 2003. "Sticks and Carrots," STICERD - Distributional Analysis Research Programme Papers 68, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    4. Laszlo Goerke, 2007. "Corporate and personal income tax declarations," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(3), pages 281-292, June.
    5. Blaine Robbins & Edgar Kiser, 2018. "Legitimate authorities and rational taxpayers: An investigation of voluntary compliance and method effects in a survey experiment of income tax evasion," Rationality and Society, , vol. 30(2), pages 247-301, May.
    6. Benno Torgler & Friedrich Schneider, 2005. "What Shapes the Attitudes Towards Paying Taxes? Evidence from Switzerland, Belgium and Spain," CREMA Working Paper Series 2005-06, Center for Research in Economics, Management and the Arts (CREMA).
    7. Benno Torgler & Friedrich Schneider, 2007. "What Shapes Attitudes Toward Paying Taxes? Evidence from Multicultural European Countries," Social Science Quarterly, Southwestern Social Science Association, vol. 88(2), pages 443-470, June.
    8. Sagit Leviner, 2008. "An overview: A new era of tax enforcement – from “big stick” to responsive regulation," Regulation & Governance, John Wiley & Sons, vol. 2(3), pages 360-380, September.
    9. Casal, Sandro & Mittone, Luigi, 2016. "Social esteem versus social stigma: The role of anonymity in an income reporting game," Journal of Economic Behavior & Organization, Elsevier, vol. 124(C), pages 55-66.
    10. Torgler, Benno & Schneider, Friedrich, 2009. "The impact of tax morale and institutional quality on the shadow economy," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 228-245, April.
    11. Alm, James & Martinez-Vazquez, Jorge & McClellan, Chandler, 2016. "Corruption and firm tax evasion," Journal of Economic Behavior & Organization, Elsevier, vol. 124(C), pages 146-163.
    12. Semjén, András, 2017. "Az adózói magatartás különféle magyarázatai [Various explanations for tax compliance]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(2), pages 140-184.
    13. James Alm & Yongzheng Liu & Kewei Zhang, 2019. "Financial constraints and firm tax evasion," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(1), pages 71-102, February.
    14. Banele Dlamini, 2017. "Determinants of Tax Non-Compliance among Small and Medium Enterprises in Zimbabwe," Journal of Economics and Behavioral Studies, AMH International, vol. 9(4), pages 242-250.
    15. David Joulfaian, 2009. "Bribes and Business Tax Evasion," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 227-244, December.
    16. Frey, Bruno S. & Torgler, Benno, 2007. "Tax morale and conditional cooperation," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 136-159, March.
    17. Oana-Ramona Lobont & Nicoleta Claudia Moldovan & Ioana Vladusel, 2013. "Education regarding taxation from the attitude and intuition to experiment," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 6(2), pages 172-179, December.
    18. T. C. Michael Wu & C. C. Yang, 2011. "Monopolists' Profit Tax Evasion Revisited," Public Finance Review, , vol. 39(6), pages 831-840, November.
    19. James Alm & Antoine Malézieux, 2021. "40 years of tax evasion games: a meta-analysis," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 699-750, September.
    20. Jorge Martinez-Vazquez & Benno Torgler, 2009. "The Evolution of Tax Morale in Modern Spain," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(1), pages 1-28.

    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:aif:journl:v:4:y:2020:i:7:p:76-90. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Farjana Rahman (email available below). General contact details of provider: .

    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.