The value-added tax refund problems in developing countries – case of Zimbabwe

2021 ◽  
Vol 2021 (1) ◽  
pp. 133-148
Author(s):  
Passionate Siwela
Keyword(s):  
Developing Countries ◽  
Processing System ◽  
Value Added ◽  
Tax Administration ◽  
Value Added Tax ◽  
Domestic Legislation ◽  
Tax Laws ◽  
Tax Design

Refund abuse is especially problematic when implementing value-added tax (VAT). Nevertheless, refunds must be paid promptly to ensure that VAT does not become a cost to business. There is therefore a need to strike a balance between procedures put in place to limit refund fraud opportunities and not causing refund delays. It is against this background that the study sought to investigate the refund processing system in Zimbabwe to highlight potential challenges faced by taxpayers and tax administrators. Evidence was collected by reviewing domestic legislation and other published literature, analysing the administration processes, including administering taxpayers and tax administrators surveys. The study found weaknesses in tax design and administration processes that created opportunities for refund fraud, fraudsters and tax planners taking advantage of the weak structures, taxpayers who fear pursuing their rights (as that will trigger a comprehensive audit), and a general unwillingness of the tax administration to invoke existing tax laws.

scholarly journals PENGARUH PENERAPAN SISTEM MODERNISASI ADMINISTRASI PAJAK, KUALITAS PELAYANAN DAN PENGETAHUAN PPN TERHADAP KEPATUHAN WAJIB PAJAK DI DKI JAKARTA

2019 ◽  
Vol 3 (2) ◽  
pp. 255
Author(s):  
Dessy Natalia Kumala Jaya
Keyword(s):  
Developing Countries ◽  
Data Collection ◽  
Service Quality ◽  
Value Added ◽  
Primary Data ◽  
Tax Administration ◽  
Value Added Tax ◽  
Insignificant Effect ◽  
Data Collection Technique

Rendahnya kesadaran wajib pajak membayar dan melaporkan pajak telah menjadi masalah yang cukup penting bagi negara maju maupun berkembang dalam aspek pajak, Fakta menunjukkan bahwa tingkat kepatuhan wajib pajak di Indonesia masih sangat rendah dibanding dengan negara lain di Asia. Rendahnya kepatuhan wajib pajak dapat dilihat dan dikaji dari sisi kesadarannya melapor dan membayar pajak secara benar. Tujuan penelitian ini untuk menguji dan mengkaji pengaruh penerapan sistem modernisasi administrasi pajak, kualitas pelayanan, dan pengetahuan pajak pertambahan nilai terhadap kepatuhan wajib pajak di DKI Jakarta. Penelitian ini menggunakan metode penelitian kausal, dan data yang digunakan dalam penelitian ini adalah data primer. Teknik pengumpulan data yang dilakukan pada penelitian ini adalah dengan cara mengumpulkan data primer dengan metode survei melalui penyebaran kuesioner kepada setiap individu – individu yang berkerja di perusahaan yang merupakan Pengusaha Kena Pajak (PKP) yang berdomisili di provinsi DKI Jakarta. Hasil pengumpulan data primer tersebut diolah dengan menggunakan SmartPLS versi 3.2. Hasil dari penelitian ini menunjukkan bahwa sistem modernisasi administrasi pajak dan pengetahuan pajak pertambahan nilai berpengaruh signifikan terhadap kepatuhan wajib pajak. Sedangkan hubungan antara kualitas pelayanan pajak terhadap kepatuhan wajib pajak adalah berpengaruh tidak signifikan. The low awareness of taxpayers paying and reporting taxes has become an important issue for both developed and developing countries in the tax aspects. Facts show that taxpayer compliance rates in Indonesia are still very low compared to other countries in Asia. The low compliance of the taxpayer can be seen and reviewed from the side of his consciousness to report and pay taxes correctly.The purpose of this study was to examine and assess the effect of application of modernization system of tax administration, service quality, knowledge of value added tax on taxpayer compliance. The method used in this research is causative research. The data used in this study is the primary data. Data collection technique is done by collecting primary data in the form of questionnaires to individuals who work in taxable companies (PKP), domiciled in Jakarta. The primary data collection results were processed using SmartPLS version 3.2. The results of this study indicate that modernization system of tax administration and knowledge of value added tax have an influence on taxpayer compliance. While service quality have an insignificant effect on taxpayer compliance.

Taxable capacity and effort of value-added tax in Kenya

2021 ◽  
Vol 2021 (1) ◽  
pp. 189-210
Author(s):  
Jane Muguchu ◽  
Nelson H Wawire ◽  
Anthony Wambugu
Keyword(s):  
Developing Countries ◽  
Capital Investment ◽  
Stochastic Frontier ◽  
Value Added ◽  
Ordinary Least Squares ◽  
Tax Administration ◽  
Effort Estimation ◽  
Value Added Tax ◽  
Tax Effort ◽  
Development Objectives

Domestic tax revenue mobilisation has received great focus among developing countries in order to achieve the development objectives with less reliance on foreign aid. The effort to mobilise revenue in developing countries has been undermined by some challenges such as high levels of non-compliance, low taxable capacity and effort averaging 10 to 20 per cent compared to Organisation for Economic Cooperation and Development (OECD) countries, which collect 30 to 40 per cent of their gross domestic product (GDP). To achieve Kenya’s Vision 2030 development objectives, the tax administration is expected to collect over 20.7 per cent of GDP and ensure revenue growth of 10 per cent per annum (Republic of Kenya, 2007). This called for establishing how far the country is from reaching its maximum tax potential and the effect of various factors that determine the taxable capacity of the country. Emphasis was placed on value-added tax (VAT) due to its high revenueraising potential. Using the Ordinary Least Squares (OLS) estimation technique and maximum likelihood for stochastic frontier approach, the study estimated the taxable capacity and effort of value-added tax (VAT). The results indicated that capital investment, manufacturing and private credit as a per cent of GDP impacted positively on taxable capacity while inflation, exports and agriculture negatively affected taxable capacity. The tax effort estimation results indicated that the average tax effort between 2011 and 2015 was 0.5, thus classifying the country under low collection, high effort category. Therefore, broadening the tax base through increased investments, manufacturing and improving on the efficiency of tax administration is fundamental in enhancing revenue mobilisation.

scholarly journals ANALISIS PERHITUNGAN PENCATATAN DAN PELAPORAN PAJAK PERTAMBAHAN NILAI ATAS EKSPEDISI ANTAR PULAU PADA PT. TAJUR JAKARTA

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Priscilia Joanna Rundengan ◽  
Jantje Tinangon ◽  
Inggriani Elim
Keyword(s):  
Case Studies ◽  
Descriptive Analysis ◽  
Value Added ◽  
Value Added Tax ◽  
Rate Of Development ◽  
Tax Laws ◽  
Dominant State ◽  
The Law ◽  
Tax Reporting

Value-added tax represent the source of revenue for very dominant state,to fulfill requirement of people. Company  as a taxpayer have to carry out their tax liability in accordance with the provisions of the tax laws are dynamic and constantly changing according to the rate of development of country’s economics. PT. Tajur Jakarta was established in 1967 which is located in Jl. Jati Baru No. 83 where the main activities of company is a shipping that uses trucking services, and that companies that count, reecord, and report Value Added Tax on the consumers of services on goods subject to Value Added Tax.The method in this research is using descriptive analysis which is describe the case studies and literature. Case studies conducted in PT TAJUR Jakarta while literature conducted by collecting data from the literature relevant to the Value-added tax. Pursuant to result of obtained research from the study,the company calculating, recording and reporting properly and in accordance with the Law No. 42 of 2009,using the rate of 10% for each taxable service / goods taxable, and also the results obtained also that the company has to deposit and tax reporting using e-SPT return and paid through the bank by the 15th of each month after the end of the tax period in accordance with law No. 42 of 2009 on Value Added Tax.

Governmentality of Value Added Tax compliance using Electronic Fiscal Devices in Malawi

2021 ◽  
Vol 12 (4) ◽  
pp. 0-0
Keyword(s):  
Developing Countries ◽  
Tax Compliance ◽  
Value Added ◽  
Government Agencies ◽  
Business Associations ◽  
Value Added Tax ◽  
National Budget ◽  
Ways Of Thinking ◽  
Complex Relationships ◽  
Power And Authority

This paper critically analysed the implementation of Electronic Fiscal Devices (EFD) in supporting value added tax (VAT) compliance. The study draws on the concept of governmentality to highlight ways of exercising power and authority among VAT stakeholders using the case of Malawi. The findings showed that tax regime discourse was important in shaping the ways of thinking and acting of stakeholders in the implementation of EFD. Complex relationships emerged as a result of implementing EFD between the revenue authority and VAT registered operators, foreign-owned businesses, business associations, government agencies and donors. While the revenue authority managed to achieve VAT compliance using EFD, there was resistance from VAT registered operators and business organisations which affected the growth of the tax regime and financing of the national budget. The study contributes to the understanding of EFD use and VAT compliance in the context of developing countries.

scholarly journals Implementasi Kebijakan Pemungutan Pajak Atas Transaksi Perdagangan Melalui E-Commerce Di Indonesia

2021 ◽  
Vol 2 (2) ◽  
pp. 60-72
Author(s):  
I Kadek Beny ◽  
Meilin Loviana Dewi
Keyword(s):  
Income Tax ◽  
Value Added ◽  
Value Added Tax ◽  
Tax Collection ◽  
Public Facilities ◽  
State Revenue ◽  
Tax Laws ◽  
Direct Compensation ◽  
Directorate General ◽  
The Government

Tax collection policy is a policy issued by the government in an effort to increase state revenue. Taxes are a taxpayer's obligation or a taxpayer's contribution to a state that is compelling without receiving direct compensation, but the tax is usually allocated to the construction of public facilities and the interests of the government of a country. With the existence of a policy regarding tax collection on trade transactions carried out online, it is hoped that there will be an awareness of taxpayers to carry out their obligations. The types of taxes that can be imposed or collected are the type of income tax (PPh) and the type of value added tax (VAT). With this tax collection policy, it is hoped that it can increase state revenue from the tax sector, especially taxes from online trade transactions by utilizing E-Commerce media. The government through the Directorate General of Taxes (DGT) has confirmed the E-Commerce transaction by issuing SE-62 / PJ / 2013 dated 27 December 2013 concerning the Affirmation of Taxation Provisions on E-Commerce Transactions, which states that there are no new taxes in E-Commerce transactions. commerce. Therefore, the seller or buyer can be taxed in accordance with the applicable tax laws. Taxes on E-Commerce transactions aim to apply justice to all taxpayers, both conventional and E-Commerce.

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