Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs

This study investigates the determinants of income tax evasion among Palestinian Small and Medium Enterprises (SMEs). Previous studies regarding the determinants of income tax evasion among SMEs are limited and results are somewhat inconsistent. The factors that determine SMEs tax evasion have not b...

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Main Author:	Alkhatib, Amjad A. I.
Format:	Thesis
Language:	eng eng eng eng
Published:	2019
Subjects:	HC Economic History and Conditions
Online Access:	https://etd.uum.edu.my/9241/1/s902208_01.pdf https://etd.uum.edu.my/9241/2/s902208_02.pdf https://etd.uum.edu.my/9241/3/s902208_references.docx https://etd.uum.edu.my/9241/5/depositpermission_s902208-Amjad%20A.I.%20Alkhatib.pdf
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id	my-uum-etd.9241
record_format	uketd_dc
spelling	my-uum-etd.92412022-04-24T01:01:32Z Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs 2019 Alkhatib, Amjad A. I. Abdul Jabbar, Hijattulah Marimuthu, Munusamy Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HC Economic History and Conditions HJ4771.6 Income Tax. Tax Returns. This study investigates the determinants of income tax evasion among Palestinian Small and Medium Enterprises (SMEs). Previous studies regarding the determinants of income tax evasion among SMEs are limited and results are somewhat inconsistent. The factors that determine SMEs tax evasion have not been sufficiently examined especially in the Palestinian context. This study extends Fischer model that is built on the integration of both Economic and Socio-Psychological theories by incorporating the Social Dominance Theory. It contributes to existing literature by investigating the direct effect of economic domination and incorporating the moderating effect of public spirit. Therefore, this study hypothesises seven (7) factors affecting tax evasion, as well as six (6) hypotheses on the moderating effects of public spirit. The study employs questionnaire survey of 500 owners-managers of SMEs listed in the Federation of Palestinian Chambers of Commerce, Industry, and Agriculture operating in West Bank, of which 184 responses (37%) are usable for analysis. The Partial Least Squares (PLS-SEM) was used to test the hypotheses. The results show that probability of detection, tax penalty, tax fairness, peer influence, tax rate, and economic domination have a significant direct relationship with tax evasion. The findings also ascertained the considerable moderating effect of public spirit on the relationship between probability of detection, tax penalty, and tax fairness on income tax evasion. The findings of the present study provide important insights into the tax authority, policy makers, and future researchers in understanding the tax evasion of SMEs. In order to curtail tax evasion in Palestine, tax authority should widen its audit, imposes more tax penalties, and publicise the information about detecting tax evaders to serve as warning to potential evaders. The current tax rate structure would be fairer if SMEs are given a lower tax rate to eliminate the perception of unfair tax burden. 2019 Thesis https://etd.uum.edu.my/9241/ https://etd.uum.edu.my/9241/1/s902208_01.pdf text eng public https://etd.uum.edu.my/9241/2/s902208_02.pdf text eng public https://etd.uum.edu.my/9241/3/s902208_references.docx text eng public https://etd.uum.edu.my/9241/5/depositpermission_s902208-Amjad%20A.I.%20Alkhatib.pdf text eng public other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Abdul Jabbar, Hijattulah Marimuthu, Munusamy
topic	HC Economic History and Conditions HC Economic History and Conditions
spellingShingle	HC Economic History and Conditions HC Economic History and Conditions Alkhatib, Amjad A. I. Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs
description	This study investigates the determinants of income tax evasion among Palestinian Small and Medium Enterprises (SMEs). Previous studies regarding the determinants of income tax evasion among SMEs are limited and results are somewhat inconsistent. The factors that determine SMEs tax evasion have not been sufficiently examined especially in the Palestinian context. This study extends Fischer model that is built on the integration of both Economic and Socio-Psychological theories by incorporating the Social Dominance Theory. It contributes to existing literature by investigating the direct effect of economic domination and incorporating the moderating effect of public spirit. Therefore, this study hypothesises seven (7) factors affecting tax evasion, as well as six (6) hypotheses on the moderating effects of public spirit. The study employs questionnaire survey of 500 owners-managers of SMEs listed in the Federation of Palestinian Chambers of Commerce, Industry, and Agriculture operating in West Bank, of which 184 responses (37%) are usable for analysis. The Partial Least Squares (PLS-SEM) was used to test the hypotheses. The results show that probability of detection, tax penalty, tax fairness, peer influence, tax rate, and economic domination have a significant direct relationship with tax evasion. The findings also ascertained the considerable moderating effect of public spirit on the relationship between probability of detection, tax penalty, and tax fairness on income tax evasion. The findings of the present study provide important insights into the tax authority, policy makers, and future researchers in understanding the tax evasion of SMEs. In order to curtail tax evasion in Palestine, tax authority should widen its audit, imposes more tax penalties, and publicise the information about detecting tax evaders to serve as warning to potential evaders. The current tax rate structure would be fairer if SMEs are given a lower tax rate to eliminate the perception of unfair tax burden.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Alkhatib, Amjad A. I.
author_facet	Alkhatib, Amjad A. I.
author_sort	Alkhatib, Amjad A. I.
title	Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs
title_short	Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs
title_full	Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs
title_fullStr	Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs
title_full_unstemmed	Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs
title_sort	economic domination, moderating role of public spirit and determinants of income tax evasion among palestinian smes
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2019
url	https://etd.uum.edu.my/9241/1/s902208_01.pdf https://etd.uum.edu.my/9241/2/s902208_02.pdf https://etd.uum.edu.my/9241/3/s902208_references.docx https://etd.uum.edu.my/9241/5/depositpermission_s902208-Amjad%20A.I.%20Alkhatib.pdf
_version_	1747828554477862912

Economic domination, moderating role of public spirit and determinants of income tax evasion among Palestinian SMEs

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