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Taxpayer Education Impact on Tobacco SMEs

This undergraduate thesis examines the impact of taxpayer education on the behavior of tobacco sector micro, small, and medium enterprises in Davao City, Philippines. It aims to determine the level of taxpayer education through electronic means, stakeholder programs, and print media. It also aims to determine the level of voluntary and enforced taxpayer compliance and whether education influences behavior. Questionnaires were adopted from previous studies on education and compliance. The questionnaires assess access to electronic media, workshops, print publications, and motivations for compliance. Responses will help understand local taxpayers' awareness and use of the current tax system.
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0% found this document useful (0 votes)
44 views10 pages

Taxpayer Education Impact on Tobacco SMEs

This undergraduate thesis examines the impact of taxpayer education on the behavior of tobacco sector micro, small, and medium enterprises in Davao City, Philippines. It aims to determine the level of taxpayer education through electronic means, stakeholder programs, and print media. It also aims to determine the level of voluntary and enforced taxpayer compliance and whether education influences behavior. Questionnaires were adopted from previous studies on education and compliance. The questionnaires assess access to electronic media, workshops, print publications, and motivations for compliance. Responses will help understand local taxpayers' awareness and use of the current tax system.
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1

The Impact of Taxpayer Education on Taxpayer Behavior among Tobacco

Sector Micro, Small, and Medium Enterprises in First District, Davao City

An Undergraduate Thesis

Presented to the Faculty of the

College of Accounting Education

Eroy, Jirah

Fanugao, Frauline Glinka

Gella, Aramae

Adviser:

Myra T. Miraflores, CPA, MSA

May 2023
2

Objectives of the Study

The main thrust of this study is to ascertain the impact of taxpayer education on

taxpayer behavior among tobacco sector micro, small, and medium enterprises in

District 1, Davao City.

1. To determine the level of taxpayer education in terms of:

a. Electronic Taxpayer Education

b. Stakeholder Sensitization Programs

c. Print Media Taxpayer Education

2. To determine taxpayer behavior in terms of:

a. Voluntary Tax Compliance

b. Enforced Tax Compliance

3. To determine whether taxpayer education has a significant influence on

taxpayer behavior among tobacco sector micro, small, and medium

enterprises in District 1, Davao City


3

ADOPTED QUESTIONNAIRE ON TAXPAYER EDUCATION

The questionnaire below are adopted from the study of Gitaru in 2017 entitled “The
Effect of Taxpayer Education on Tax Compliance in Kenya” and Erich & Whal (2010)
entitled “Tax Compliance Inventory: TAX-I Voluntary Tax compliance, Enforced Tax
compliance, Tax avoidance, and tax evasion”.

Sources: 1. [Link]
2. [Link]

ELECTRONIC TAXPAYER EDUCATION

STAKEHOLDERS SENSITIZATION PROGRAMS


4

PRINT MEDIA TAXPAYER EDUCATION


5

ADOPTED QUESTIONNAIRE ON TAXPAYER BEHAVIOR

The questionnaire below are adopted from the study of Erich & Whal (2010) entitled
“Tax Compliance Inventory: TAX-I Voluntary Tax compliance, Enforced Tax
compliance, Tax avoidance, and tax evasion”.
Source: [Link]
AX-I-Voluntary-tax-tax-Kirchler-Wahl

VOLUNTARY TAX COMPLIANCE

ENFORCED TAX COMPLIANCE


6
7

QUESTIONNAIRE ON THE IMPACT OF TAXPAYER EDUCATION ON


TAXPAYER BEHAVIOR AMONG TOBACCO SECTOR MICRO, SMALL,
AND MEDIUM ENTERPRISES IN FIRST DISTRICT DAVAO CITY

Good day!

This study is conducted by the BSA students at the University of Mindanao as


part of their research. The researchers are trying to learn more about the taxpayers'
understanding and awareness of the current environmental tax system. There are no
right or wrong answers. All collected information is strictly treated confidential and
will be used for research purposes only. Thank you, and God bless!

Name of Respondent (optional): _____________

General Instruction: This survey is divided into 2 parts. The first part is a
questionnaire about taxpayer education. Second part is about tax taxpayer behavior Put
a check mark on the box of your answer. Kindly answer the questions honestly.

PART 1- TAXPAYER BEHAVIOR

A. Electronic Taxpayer Education

No. Questions Strongly Agree Neutral Disagree Strongly


Agree Disagree

1 2 3 4 5

1 BIR uses television,


radio and BIR
websites to educate the
taxpayer

2 I have access to BIR


online platforms

3 Electronic media
enables me to access
information easily

4 BIR uses social media


such as Facebook to
provide key messages
on activities such as
tax time reminders and
event coverage
8

B. Stakeholders Sensitization Program

No. Questions Strongly Agree Neutral Disagree Strongly


Agree Disagree

1 2 3 4 5

1 BIR has been


responding to my
queries and requests.

2 BIR workshops are


detailed and provide
me enough time to
conceptualize ideas.

3 BIR workshops have


enabled me to file
returns easily.

4 Tax campaigns by BIR


have enlightened me to
file returns easily.

C. Print Media Taxpayer Education

No. Questions Strongly Agree Neutral Disagree Strongly


Agree Disagree

1 2 3 4 5

1 BIR uses a national


newspaper that guides
me on filing my
returns.

2 BIR uses brochures


that enable me to
obtain more
information about tax.

3 BIR uses brochures to


recognize and
appreciate compliant
taxpayers.

4 BIR uses brochures to


state office contacts so
taxpayers can reach
the office with
convenience when
9

seeking assistance.

PART 2 - TAXPAYER BEHAVIOR

A. Voluntary Tax Compliance

No. Questions Strongly Agree Neutral Disagree Strongly


Agree Disagree

When I pay my taxes 1 2 3 4 5


as required by
regulations, I do so…

1 because I pay my
excise taxes
voluntarily.

2 without spending a
long time thinking
how I could reduce
them.

3 to support the country


and citizens.

4 because it is the right


thing to do.

B. Enforced Tax Compliance

No. Questions Strongly Agree Neutral Disagree Strongly


Agree Disagree

When I pay my taxes 1 2 3 4 5


as required by
regulations, I do so…

1 because I feel forced to


pay taxes.

2 because I know that it


will be audited.

3 because the
punishment of not
paying is very severe

4 because tax office


often carries out audit
10

Common questions

Powered by AI

Efforts to make tax office information more accessible through print media significantly influence taxpayer behavior by providing clear channels for obtaining assistance. This accessibility ensures taxpayers can easily resolve queries and comply with tax obligations, thereby improving both voluntary and enforced compliance .

The likelihood of an audit plays a pivotal role in influencing enforced tax compliance as it acts as a deterrent for non-compliance. The knowledge that tax offices frequently conduct audits reinforces the risks associated with non-compliance, compelling businesses to adhere strictly to tax regulations to avoid severe penalties .

Factors contributing to voluntary tax payment include a sense of duty to support the country, understanding the importance of taxes in public welfare, and the perceived fairness and transparency of the tax system. Effective taxpayer education fosters an informed taxpayer base that is less inclined to engage in tax avoidance or evasion strategies .

Access to electronic tax information significantly enhances tax compliance among MSMEs in the tobacco industry. The availability of comprehensive, easily accessible online resources enables taxpayers to comply voluntarily by understanding their responsibilities and the penalties for non-compliance, thus improving overall compliance rates .

Workshops play a crucial role in simplifying the tax return filing process for tobacco sector enterprises by providing detailed guidance and allowing sufficient time for participants to implement learned strategies. This educational approach demystifies the filing process and encourages correct and timely compliance .

Tax appreciation programs communicated through brochures positively affect motivation by recognizing compliant taxpayers, thus reinforcing good behavior. This acknowledgment acts as an incentive, encouraging voluntary compliance among enterprises by promoting a positive view of tax obligations .

The effectiveness of social media as a tool by tax authorities is significant, as it provides timely updates and reminders on tax obligations, thus positively influencing taxpayer compliance. The ease of access to information and interactive engagement enhances understanding and satisfaction, leading to better compliance rates among enterprises in the tobacco sector .

Print media is instrumental in shaping taxpayer behavior by offering reliable information on tax filing processes through national newspapers and brochures. This approach aids taxpayers in understanding their obligations and recognizing compliant taxpayers, fostering both voluntary and enforced compliance .

Electronic taxpayer education is vital as it provides taxpayers with easy access to information, facilitating voluntary tax compliance among micro, small, and medium enterprises in the tobacco sector. The use of platforms such as television, radio, and social media by the Bureau of Internal Revenue (BIR) helps educate taxpayers effectively, promoting awareness and informed tax behavior .

Stakeholder sensitization programs enhance enforced tax compliance by providing comprehensive workshops and tax campaigns that raise taxpayer awareness. These programs help enterprises understand the severity of penalties and the likelihood of audits, thus motivating them to comply with tax obligations .

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