Tax evasion is one of the biggest challenges the current government in Somalia is facing in terms of increasing its revenue, it also hinders the ability of the government to provide basic services to its citizens. This study evaluates the determinants of tax evasion in Banadir Region of Somalia. A questionnaire was used to collect information on how drivers in the region pay their taxes, 240 randomly selected drivers have successfully responded to this study.
The outcome of the study demonstrates that tax system has a significant negative relationship with tax evasion. On the other hand, tax rate, corruption, income level, and also education level have a positive significant relationship with tax evasion. This study suggests that essential measures ought to be taken by the tax authorities to enhance income collection and decrease tax evasion. It is additionally recommended that crusade against corruption, public enlightenment on tax issues and correction of tax procedures should be embraced.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Literature review
- Tax System (TS)
- Tax Rate
- Corruption
- Education level
- Income level
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This study aims to investigate the factors that influence tax evasion in the Banadir Region of Somalia. The study specifically examines the relationship between tax system, tax rate, corruption, education level, and income level, with tax evasion.
- Determinants of Tax Evasion in Somalia
- Impact of Tax System on Taxpayer Behavior
- Relationship between Tax Rate and Tax Evasion
- Role of Corruption in Tax Evasion
- Influence of Education and Income Level on Tax Evasion
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter provides a general overview of the research problem, the context of tax evasion in Somalia, and the significance of the study. The chapter discusses the challenges posed by tax evasion to revenue generation and service delivery in Somalia.
- Literature Review: This chapter delves into the existing literature on tax evasion, examining various theoretical perspectives and empirical studies. It explores the key factors influencing tax evasion, such as tax system, tax rate, corruption, education level, and income level. The chapter also examines the contradictory findings on these factors from previous research.
Schlüsselwörter (Keywords)
The key terms and concepts explored in this study include tax evasion, tax system, income level, education level, tax rate, corruption, Banadir State, and Somalia. The study focuses on the determinants of tax evasion in a specific region of Somalia, exploring the interplay of economic, social, and institutional factors that contribute to tax evasion behavior.
Frequently Asked Questions
What are the main causes of tax evasion in Somalia?
The study identifies high tax rates, corruption, low income levels, and lack of education as significant positive determinants of tax evasion in the Banadir region.
How does the tax system affect taxpayer behavior in Somalia?
The research shows a significant negative relationship between the tax system's quality and tax evasion, suggesting that a more efficient system could reduce evasion.
What role does corruption play in tax evasion?
Corruption has a positive significant relationship with tax evasion, as it undermines trust in authorities and provides opportunities for individuals to bypass legal tax obligations.
How can the Somali government decrease tax evasion?
Recommendations include launching anti-corruption crusades, improving public enlightenment on tax issues, and simplifying tax procedures to enhance compliance.
Does education level influence tax compliance?
Yes, the study found that education level is a significant factor, indicating that better-informed citizens may have different tax compliance behaviors compared to those with less knowledge of the tax system.
- Arbeit zitieren
- Zakarie Ahmednour Ali (Autor:in), 2018, Tax evasion determinants in Somalia, München, GRIN Verlag, https://www.hausarbeiten.de/document/416799
