Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation

Despite the government’s extensive efforts, sales tax evasion among Jordanian Small and Medium-sized Enterprises (SMEs) is comparatively high, adversely influencing government revenues. The factors that influence SMEs sales tax evasion have not been sufficiently investigated, particularly in Jordan....

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Main Author:	Al-Rahamneh, Nayef Mohammad Abdel-Nabi
Format:	Thesis
Language:	eng eng eng
Published:	2022
Subjects:	HD60 Small Business.
Online Access:	https://etd.uum.edu.my/10724/1/permission%20to%20deposit-allow%20embargo%2036%20months-s903758.pdf https://etd.uum.edu.my/10724/2/s903758_01.pdf https://etd.uum.edu.my/10724/3/s903758_02.pdf
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spelling	my-uum-etd.107242023-10-30T07:18:50Z Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation 2022 Al-Rahamneh, Nayef Mohammad Abdel-Nabi Bidin, Zainol College of Business (COB) College of Business HD60 Small Business. HJ4771.6 Income Tax. Tax Returns. Despite the government’s extensive efforts, sales tax evasion among Jordanian Small and Medium-sized Enterprises (SMEs) is comparatively high, adversely influencing government revenues. The factors that influence SMEs sales tax evasion have not been sufficiently investigated, particularly in Jordan. Previous studies rarely highlight the determinants of sales tax evasion, and the results are somewhat inconsistent. Thus, this study aimed to extend Fischer’s model by integrating economic and socio - psychological theories in the context of sales tax evasion. The moderating role of the moral obligation on the association between sales tax evasion and its determinants was also investigated. The study examined tax transparency and political stability as a new construct to better understand the determinants of sales tax evasion among Jordanian SMEs. This study hypothesized eight factors affecting sales tax evasion and eight hypotheses on the moderating effects of moral obligation. Using a quantitative approach, this study surveyed 500 SMEs owners/managers listed in the Jordanian Ministry of Industry and Trade (MIT), of which 212 responses (42.4%) were usable for analysis purposes. Partial Least Squares (PLS) was used for hypothesis testing. The findings showed that peer influence, tax rate, tax complexity, and tax transparency directly correlate with sales tax evasion. Meanwhile, tax fairness, tax penalty, probability of detection, and political stability did not significantly impact sales tax evasion. This study also offers evidence that integrating moral obligation as a moderator strengthens the model's ability to explain tax evasion and significantly moderates the effect of tax fairness, tax rate, probability of detection, and political stability on sales tax evasion. Thus, policymakers and tax authorities should integrate these variables to formulate appropriate strategies to curtail tax evasion in Jordan, which could lead to the overall improvement in the revenue collection of the country at large 2022 Thesis https://etd.uum.edu.my/10724/ https://etd.uum.edu.my/10724/1/permission%20to%20deposit-allow%20embargo%2036%20months-s903758.pdf text eng 2025-12-26 staffonly https://etd.uum.edu.my/10724/2/s903758_01.pdf text eng 2025-12-26 staffonly https://etd.uum.edu.my/10724/3/s903758_02.pdf text eng staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Bidin, Zainol
topic	HD60 Small Business. HD60 Small Business.
spellingShingle	HD60 Small Business. HD60 Small Business. Al-Rahamneh, Nayef Mohammad Abdel-Nabi Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation
description	Despite the government’s extensive efforts, sales tax evasion among Jordanian Small and Medium-sized Enterprises (SMEs) is comparatively high, adversely influencing government revenues. The factors that influence SMEs sales tax evasion have not been sufficiently investigated, particularly in Jordan. Previous studies rarely highlight the determinants of sales tax evasion, and the results are somewhat inconsistent. Thus, this study aimed to extend Fischer’s model by integrating economic and socio - psychological theories in the context of sales tax evasion. The moderating role of the moral obligation on the association between sales tax evasion and its determinants was also investigated. The study examined tax transparency and political stability as a new construct to better understand the determinants of sales tax evasion among Jordanian SMEs. This study hypothesized eight factors affecting sales tax evasion and eight hypotheses on the moderating effects of moral obligation. Using a quantitative approach, this study surveyed 500 SMEs owners/managers listed in the Jordanian Ministry of Industry and Trade (MIT), of which 212 responses (42.4%) were usable for analysis purposes. Partial Least Squares (PLS) was used for hypothesis testing. The findings showed that peer influence, tax rate, tax complexity, and tax transparency directly correlate with sales tax evasion. Meanwhile, tax fairness, tax penalty, probability of detection, and political stability did not significantly impact sales tax evasion. This study also offers evidence that integrating moral obligation as a moderator strengthens the model's ability to explain tax evasion and significantly moderates the effect of tax fairness, tax rate, probability of detection, and political stability on sales tax evasion. Thus, policymakers and tax authorities should integrate these variables to formulate appropriate strategies to curtail tax evasion in Jordan, which could lead to the overall improvement in the revenue collection of the country at large
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Al-Rahamneh, Nayef Mohammad Abdel-Nabi
author_facet	Al-Rahamneh, Nayef Mohammad Abdel-Nabi
author_sort	Al-Rahamneh, Nayef Mohammad Abdel-Nabi
title	Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation
title_short	Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation
title_full	Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation
title_fullStr	Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation
title_full_unstemmed	Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation
title_sort	determinants of sales tax evasion among smes in jordan: the moderating effect of moral obligation
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2022
url	https://etd.uum.edu.my/10724/1/permission%20to%20deposit-allow%20embargo%2036%20months-s903758.pdf https://etd.uum.edu.my/10724/2/s903758_01.pdf https://etd.uum.edu.my/10724/3/s903758_02.pdf
_version_	1783729416966242304

Determinants of sales tax evasion among SMEs in Jordan: The moderating effect of moral obligation

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