An Analysis of the Factors Influencing Presumptive Taxation Compliance in the Zimbabwean Retail Sector

Mufaro Dzingirai (), Rodgers Ndava, Favourate Sebele-Mpofu () and David Mhlanga
Additional contact information
Mufaro Dzingirai: Midlands State University
Rodgers Ndava: Midlands State University
Favourate Sebele-Mpofu: University of Johannesburg
David Mhlanga: University of Johannesburg

Chapter Chapter 4 in Sustainable Finance and Business in Sub-Saharan Africa, 2024, pp 45-70 from Springer

Abstract: Abstract Tax noncompliance is a growing concern in both developed and developing countries across the world. It has not been easy for the revenue collection agency to tap sufficient tax revenue due to compliance challenges in the informal sector. Worryingly, limited research work focused on presumptive taxation compliance. Given this main literature gap in tax compliance discourse, this study analyzes the factors influencing presumptive taxation compliance in the Zimbabwean retail sector. With the application of correlation and regression analysis to the data collected from 69 valid questionnaires, the results revealed that taxpayers’ attitudes, tax system complexity, perception of fairness, and taxpayers’ knowledge positively influence presumptive taxation compliance. This empirical evidence contributes to a sparse, but growing body of knowledge on presumptive taxation compliance in the context of the informal sector. Moreover, this study recommends the introduction of a participatory tax system, simplification of the tax system, augmentation of tax transparency when it comes to the expenditure of tax revenue, investment in taxpayer education, spontaneous tax audits, and improvement of horizontal monitoring approach.

Keywords: Presumptive tax; ZIMRA; Tax compliance; Retail sector; Tax knowledge; Taxpayers’ attitude; Tax system complexity; Zimbabwe (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-031-74050-3_4

Ordering information: This item can be ordered from
http://www.springer.com/9783031740503

DOI: 10.1007/978-3-031-74050-3_4

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().