The Role of Tax Culture in Tax Return Non-Filing Behaviour. Reflections from Micro-Business Sector of Pakistan by Utilizing the Theory of Planned Behaviour
Keywords:
Tax Culture, Pakistan, Microbusiness, Intention to Comply, Attitude toward Compliance, Intention to complyAbstract
The purpose of this study is to understand the underlying causes of tax noncompliance among the microbusiness sector. This research looks at the influence of tax culture on microbusinesses in Pakistan that do not file their tax returns. To obtain data, the study used a structured questionnaire disseminated via the snowball sampling approach. For analysis, partial least squares (PLS) software was utilised. PLS is a statistical approach that is frequently used in the social sciences to describe complicated interactions between variables. The study found a significant direct relationship between all factors except attitude towards compliance, tax morale, and intention to comply. The study's key result is that tax culture functions as a mediating factor, impacting the link between the independent factors and the dependent variable of tax noncompliance. This shows that the larger cultural environment in which microbusinesses operate has a significant impact on their tax-related behaviours. The study concludes by demonstrating its limitations, recognising that the technique of snowball sampling may have introduced certain biases and that the findings may not be applicable to all microbusinesses in Pakistan. The researchers also propose future study paths, advising that more studies investigate the relevance of other potential mediating factors and evaluate the effectiveness of various policy measures targeted at boosting tax compliance among microbusinesses.
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