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TITLE: Perception on Compliance Behavior of Taxpayers
PROPONENTS: Cortez, Alyssa Marie D.
Deray, Hanna Carmina R.
Medina, Eloiza Faye B.
ABSTRACT
In this study, there are 465 taxpayers who answered the survey questionnaires.
Among these respondents there are 31.40% who are 45-54 years old while the least
age range who answered the respondents are under 18 years old which is only 0.22%
mainly because ages 18 and below doesn’t have the obligation yet in paying taxes.
Majority of the taxpayers are composed of Individual Taxpayer with 80% while there are
13.33% that are Corporate Taxpayer and 6.67% or 31 respondents belong to a
Partnership. Majority of the respondents are engaged in Retail and Merchandising
Industry with 33.05%. Most of the respondents has a business that exists for more than
10 years and their income level is ranging from 250,000 and below. According to them
they are paying VAT monthly and their contribution is somewhat valuable. Based from
the answers of the respondents, they pay their taxes on their own will and just because
they are obliged to do so. Even though they feel that it is a burden to pay taxes, they still
pay their taxes honestly.
Among the respondents, 21.94% of them believe that they will be imprisoned if
they don’t pay their taxes and 49.89% of them think that they won’t be imprisoned. This
thinking could lead them in tax avoidance because they think that they won’t face any
consequences. Majority of the respondent think that the tax system on filing is
organized and efficient which is 75.91%. Among the respondents, only 26.38% doesn’t
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agree that the tax rate is reasonable and fair to them. There are also taxpayers who
agree that the government is spending the taxes wisely which is 14.01% and only
1.94% of the respondent strongly agree to this which is only 9 out of 464 respondents.
INTRODUCTION
Since paying taxes is our obligation as a citizen of our country, it is important that
we study this kind of things. It is important to study the taxpayer’s perception on tax
compliances for us to have an idea on how other people feel and think about paying
their taxes. This will give us better knowledge and help us understand deeper the value
of each taxpayers in our economy. This study is also important for us to comprehend
the attitudes or behaviour of each individuals towards paying their taxes.
With the help of this study, we learned that there are a lot of taxpayers think that
they won’t get any consequences of they don’t pay their taxes and this could cause tax
avoidance. We learned that not all taxpayers agree with the tax system imposed by the
government and they. We learned about the different perceptions of each individuals
who pay taxes. There are taxpayers who pay taxes not just because they are obliged to
do so.
DISCUSSION
Demographics of the Participating Taxpayers
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There are 465 taxpayers who answered the survey. Majority of it are female with
54.41%, which is 253 respondents, and male respondents composed of 45.81%, which
is 213 respondents. Larger percentage of ages 45-54 years old are the ones who
answered the survey, while the least are from the age range of under 18 years old.
16.34% came from the people ages 18-24 years old while 18.28% for ages 25-34 years
old. 69 respondents who answered the survey were ages 33-44 years old, which is
14.84% of the total number. Majority of those who answered the survey are college
graduate while 57 respondents are high school graduate and 37 respondents are
postgraduate. 61.47% of the total number of respondents are married while 35.34% of
the respondents are single. Majority of the taxpayers are composed of Individual
Taxpayer with 80% while there are 13.33% that are Corporate Taxpayer and 6.67% or
31 respondents belong to a Partnership. Majority of the respondents are engaged in
Retail and Merchandising Industry with 33.05%. Most of the respondents has a
business that exists for more than 10 years and their income level is ranging from
250,000 and below. Their capitalization in the business is from P1,000,000 to
P3,000,000. They are paying VAT monthly and for them their contribution is somewhat
valuable.
Tax Morale of the Taxpayers Affecting Compliances with Taxes
Based on the answers of the respondents, they agree that they are obliged in
paying their taxes. Most of the answers in Q13 are none at all, which means that they
are paying their tax based on their own will and they are not influenced when their
competitors are not paying taxes. They choose to pay the taxes because they know that
it will be beneficial for the government as well as the country. Majority of the
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respondents are honest taxpayers, they pay taxes because they believe that it’s their
obligation to do so. Since majority agrees that they know the value of their tax, they
know where their taxes go. Majority also answers that they pay their taxes based on
their records. They felt that sometimes it is a burden to pay for taxes as reflected in the
answers of Q20. But even so, they still pay their taxes honestly. Overall, they are aware
of their tax obligations and complying with it.
Tax Beliefs of the Taxpayers and How It Affects Tax Compliances
90.36% of the respondents in the study submit their tax reports and and
compliances on time, while 9.64% of them admitted that they don’t submit their tax
reports on time. 5.39% of the respondents are much likely adjust their payments of
taxes based on their capacity while 8.62% of them believe that they don’t adjust their
payments at all. 37.28% of the respondents somehow disagree that the government is
spending the taxes wisely and 15.52% are much to disagree which is 72 out of 464
respondents. There are also taxpayers who agree that the government is spending the
taxes wisely which is 14.01% and only 1.94% of the respondent strongly agree to this
which is only 9 out of 464 respondents. Only 7.10% of the respondents strongly agree
that they get benefits from paying the taxes and 4.30% strongly disagree that they get
benefits. Only 1.72% of the respondents strongly agree that the government is
trustworthy and 15.27% strongly disagree.
Taxpayer’s Perception of the Tax Policies and Procedures and How It Affects Tax
Compliances
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Among the respondents, 21.94% of them believe that they will be imprisoned if
they don’t pay their taxes and 49.89% of them think that they won’t be imprisoned. This
thinking could lead them in tax avoidance because they think that they won’t face any
consequences. 25.27% of the respondents cannot trust the government with their taxes
and 24.40% think that they can entrust their taxes to the government. 35.57% think that
there is no fairness in the tax system and 24.71% agree that there is fairness. 36.91%
of the respondents think that the tax system imposed in the country is not clear and
understandable, 23.39% of them think that is clear and 42.70% of them think that it is
somehow clear. Majority of the respondent think that the tax system on filing is
organized and efficient which is 75.91%. Among the respondents, only 26.38% doesn’t
agree that the tax rate is reasonable and fair to them. 34.12% of the respondents think
that the fines and penalty are not reasonable which is 159 out of 466 respondents.
CONCLUSION
Majority of the taxpayers feel burdened in paying their taxes but this does not
stop them from doing their obligations. They believed that these taxes would help the
economy of the country they live in. We think that the government should give more
proof and assurance to all the taxpayers the benefit they can all get in paying their
taxes. This could encourage all individuals to do their obligation as a taxpayer and not
do any illegal activities just to avoid the payment of taxes.
Tax collection is the general instrument used to control the economy, and it fills in
as the national spending's main source of income, which, thus, enables the monetary
allowance to balance out the general public and build up the national economy. As a
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student and a future taxpayer, this study is important for us to have knowledge and
comprehend that the stability of our country and the improvement of the economy relies
upon income sources from these taxes that these people pay. This is also important for
us to realize how our payment of taxes affect the economy and to understand the
process and the basic rationale of paying of taxes of these taxpayers in our study.

Unformatted Attachment Preview

TITLE: Perception on Compliance Behavior of Taxpayers PROPONENTS: Cortez, Alyssa Marie D. Deray, Hanna Carmina R. Medina, Eloiza Faye B. ABSTRACT In this study, there are 465 taxpayers who answered the survey questionnaires. Among these respondents there are 31.40% who are 45-54 years old while the least age range who answered the respondents are under 18 years old which is only 0.22% mainly because ages 18 and below doesn’t have the obligation yet in paying taxes. Majority of the taxpayers are composed of Individual Taxpayer with 80% while there are 13.33% that are Corporate Taxpayer and 6.67% or 31 respondents belong to a Partnership. Majority of the respondents are engaged in Retail and Merchandising Industry with 33.05%. Most of the respondents has a business that exists for more than 10 years and their income level is ranging from 250,000 and below. According to them they are paying VAT monthly and their contribution is somewhat valuable. Based from the answers of the respondents, they pay their taxes on their own will and just because they are obliged to do so. Even though they feel that it is a burden to pay taxes, they still pay their taxes honestly. Among the respondents, 21.94% of them believe that they will be imprisoned if they don’t pay their taxes and 49.89% of them think that they won’t be imprisoned. This thinking could lead them in tax avoidance because they think that they won’t face any consequences. Majority of the respondent think that the tax system on filing is organized and efficient which is 75.91%. Among the respondents, only 26.38% doesn’t agree that the tax rate is reasonable and fair to them. There are also taxpayers who agree that the government is spending the taxes wisely which is 14.01% and only 1.94% of the respondent strongly agree to this which is only 9 out of 464 respondents. INTRODUCTION Since paying taxes is our obligation as a citizen of our country, it is important that we study this kind of things. It is important to study the taxpayer’s perception on tax compliances for us to have an idea on how other people feel and think about paying their taxes. This will give us better knowledge and help us understand deeper the value of each taxpayers in our economy. This study is also important for us to comprehend the attitudes or behaviour of each individuals towards paying their taxes. With the help of this study, we learned that there are a lot of taxpayers think that they won’t get any consequences of they don’t pay their taxes and this could cause tax avoidance. We learned that not all taxpayers agree with the tax system imposed by the government and they. We learned about the different perceptions of each individuals who pay taxes. There are taxpayers who pay taxes not just because they are obliged to do so. DISCUSSION Demographics of the Participating Taxpayers There are 465 taxpayers who answered the survey. Majority of it are female with 54.41%, which is 253 respondents, and male respondents composed of 45.81%, which is 213 respondents. Larger percentage of ages 45-54 years old are the ones who answered the survey, while the least are from the age range of under 18 years old. 16.34% came from the people ages 18-24 years old while 18.28% for ages 25-34 years old. 69 respondents who answered the survey were ages 33-44 years old, which is 14.84% of the total number. Majority of those who answered the survey are college graduate while 57 respondents are high school graduate and 37 respondents are postgraduate. 61.47% of the total number of respondents are married while 35.34% of the respondents are single. Majority of the taxpayers are composed of Individual Taxpayer with 80% while there are 13.33% that are Corporate Taxpayer and 6.67% or 31 respondents belong to a Partnership. Majority of the respondents are engaged in Retail and Merchandising Industry with 33.05%. Most of the respondents has a business that exists for more than 10 years and their income level is ranging from 250,000 and below. Their capitalization in the business is from P1,000,000 to P3,000,000. They are paying VAT monthly and for them their contribution is somewhat valuable. Tax Morale of the Taxpayers Affecting Compliances with Taxes Based on the answers of the respondents, they agree that they are obliged in paying their taxes. Most of the answers in Q13 are none at all, which means that they are paying their tax based on their own will and they are not influenced when their competitors are not paying taxes. They choose to pay the taxes because they know that it will be beneficial for the government as well as the country. Majority of the respondents are honest taxpayers, they pay taxes because they believe that it’s their obligation to do so. Since majority agrees that they know the value of their tax, they know where their taxes go. Majority also answers that they pay their taxes based on their records. They felt that sometimes it is a burden to pay for taxes as reflected in the answers of Q20. But even so, they still pay their taxes honestly. Overall, they are aware of their tax obligations and complying with it. Tax Beliefs of the Taxpayers and How It Affects Tax Compliances 90.36% of the respondents in the study submit their tax reports and and compliances on time, while 9.64% of them admitted that they don’t submit their tax reports on time. 5.39% of the respondents are much likely adjust their payments of taxes based on their capacity while 8.62% of them believe that they don’t adjust their payments at all. 37.28% of the respondents somehow disagree that the government is spending the taxes wisely and 15.52% are much to disagree which is 72 out of 464 respondents. There are also taxpayers who agree that the government is spending the taxes wisely which is 14.01% and only 1.94% of the respondent strongly agree to this which is only 9 out of 464 respondents. Only 7.10% of the respondents strongly agree that they get benefits from paying the taxes and 4.30% strongly disagree that they get benefits. Only 1.72% of the respondents strongly agree that the government is trustworthy and 15.27% strongly disagree. Taxpayer’s Perception of the Tax Policies and Procedures and How It Affects Tax Compliances Among the respondents, 21.94% of them believe that they will be imprisoned if they don’t pay their taxes and 49.89% of them think that they won’t be imprisoned. This thinking could lead them in tax avoidance because they think that they won’t face any consequences. 25.27% of the respondents cannot trust the government with their taxes and 24.40% think that they can entrust their taxes to the government. 35.57% think that there is no fairness in the tax system and 24.71% agree that there is fairness. 36.91% of the respondents think that the tax system imposed in the country is not clear and understandable, 23.39% of them think that is clear and 42.70% of them think that it is somehow clear. Majority of the respondent think that the tax system on filing is organized and efficient which is 75.91%. Among the respondents, only 26.38% doesn’t agree that the tax rate is reasonable and fair to them. 34.12% of the respondents think that the fines and penalty are not reasonable which is 159 out of 466 respondents. CONCLUSION Majority of the taxpayers feel burdened in paying their taxes but this does not stop them from doing their obligations. They believed that these taxes would help the economy of the country they live in. We think that the government should give more proof and assurance to all the taxpayers the benefit they can all get in paying their taxes. This could encourage all individuals to do their obligation as a taxpayer and not do any illegal activities just to avoid the payment of taxes. Tax collection is the general instrument used to control the economy, and it fills in as the national spending's main source of income, which, thus, enables the monetary allowance to balance out the general public and build up the national economy. As a student and a future taxpayer, this study is important for us to have knowledge and comprehend that the stability of our country and the improvement of the economy relies upon income sources from these taxes that these people pay. This is also important for us to realize how our payment of taxes affect the economy and to understand the process and the basic rationale of paying of taxes of these taxpayers in our study. Name: Description: ...
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