Literature Review On Tax Administration

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CHAPTER TWO: REVIEW OF RELATED LITERATURE This section presents a brief review of existing theoretical and empirical literature of tax and tax administration. This review of literature establishes the framework for the study and high lights the noticeable strength and weakness of previous studies, which in return help in clearly identifying the gap in the literature and formulating the research question for the study. 2.1. Definitions and Concepts of Tax Taxes are a portion of private wealth, exacted from individuals by the state for meeting the expenditure essential to carrying out the functions of government. Taxation in some form is an invariable attribute of an organized political society, and, under whatever name it exists, it becomes…show more content…
This function is the processes used by the tax administration to monitor compliance, by selecting filed tax returns to audit/verify income, expenses, and supporting information reported by the taxpayer and to make additional assessments, which require collection action. The fifth function out of the core functions is taxpayer objections (administrative appeals; the processes offered to taxpayers to first dispute proposed additional tax assessments in forums within the tax administration’s field offices. Taxpayer appeals is also a tax administration, which includes the formal processes available to taxpayers under the law to protest proposed additional tax assessments or other actions by the tax administration at forums away from the direct jurisdiction of the tax administration’s compliance offices, including judicial reviews and…show more content…
Simply put, tax compliance refers to fulfilling all tax obligations as specified by the law freely and completely. It has been found that regulatory burdens fall disproportionately on small and medium enterprises internationally (Pope& Abdul-Jabbar, 2008) cited ate Atawodi and Ojeka (2012). Their size and nature makes the issue of tax compliance one of particular importance especially since most SMEs have access to limited resources and inadequate expertise to comply with diverse and complicated regulation. They also believe that high compliance costs can result in tax avoidance, tax fraud, and inhibit investment by way of diminishing competitiveness of the country in terms of taxation attractiveness (Atawodi and Ojeka, 2012, p.

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