The influence of tax transparency on sales tax evasion among Jordanian SMEs: The moderating role of moral obligation
Nayef Mohammad Al-Rahamneh,
Mo’taz Kamel Al Zobi and
Zainol Bidin
Cogent Business & Management, 2023, vol. 10, issue 2, 2220478
Abstract:
Globally, taxes is a crucial source of income for various governments. However, in spite of the numerous importance of taxes for the socioeconomic growth of developed and developing countries, Jordan as a developing country faces challenges of tax evasion. It is pivotal in this regard to reduce tax evasion among Small and Medium Sized Enterprises (SMEs). This study aimed to examine the relation between tax transparency and sales tax evasion among Jordanian SMEs considering the role of moral obligation as the moderating factor between the endogenous and exogenous variables. Using a quantitative approach, this study surveyed 400 SMEs owners/managers. Only 45% of these surveys were valid for further analysis. For hypothesis testing and data analysis, the partial least squares structural equational modelling (PLS-SEM) technique was used. The results revealed that tax transparency had negative and significant influence on sales tax evasion. This study also provides evidence that the model’s ability to explain tax evasion and the influence of tax transparency on sales tax evasion are both greatly strengthened by the integration of moderating role of moral obligation. This study contributes to the existing body of knowledge on this subject and can help scholars and practitioners investigate the effects of tax transparency and moral obligation on sales tax evasion among SMEs. Hence, tax authorities, and policymakers should incorporate these factors to formulate effective strategies to combat tax evasion in Jordan, which could lead to an overall improvement in the country’s revenue collection.
Date: 2023
References: Add references at CitEc
Citations:
Downloads: (external link)
http://hdl.handle.net/10.1080/23311975.2023.2220478 (text/html)
Access to full text is restricted to subscribers.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:taf:oabmxx:v:10:y:2023:i:2:p:2220478
Ordering information: This journal article can be ordered from
http://cogentoa.tandfonline.com/journal/OABM20
DOI: 10.1080/23311975.2023.2220478
Access Statistics for this article
Cogent Business & Management is currently edited by Len Tiu Wright and Tahir Nisar
More articles in Cogent Business & Management from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().