ISSN: 2225-8329
Open access
The current paper examines the relation between tax moral and the sales tax compliance of SMEs. The impact of tax moral on sales tax compliance has been received a very little attention. However, to date, there has been no work on the effect of tax moral on sales tax compliance among Jordanian SMEs. This relationship was then tested based on the survey outcomes from 212 SMEs serving in Jordan. The Partial Least Squares (PLS) results revealed positive influence of tax moral on sales tax compliance. Besides extending the body of knowledge by providing a model to explain how tax moral influence sales tax compliance, the results offer insights on the tax moral of sales tax compliance among SMEs. This study also highlights the implications of this finding towards the owner-managers of SMEs and the potential future research.
1. Abdul-Jabbar, H., & Pope, J. (2008). Exploring the relationship between tax compliance costs and compliance issues in Malaysia. Journal of Applied Law and Policy, 1(1), 1–20.
2. Adams, C., & Webley, P. (2001). Small business owners attitudes on VAT compliance in the UK. Journal of Economic Psychology, 22(1), 195–216.
3. Al-Naimat, S. M. A. (2013). Theoretical and analytical study of tax law in Jordan according to the: income tax and sales tax and its relationship with revenues and tax evasion. International Journal of Financial Research, 4(3), 107–126. https://doi.org/10.5430/ijfr.v4n3p107
4. Al-ttaffi, L. H. A., & Abdul-jabbar, H. (2015). Does muslim view on tax influence compliance behaviour? In International Conference on Accounting Studies (ICAS) 2015 17-20 August 2015, Johor Bahru, Johor, Malaysia.
5. Alasfour, F., Samy, M., & Bampton, R. (2016). The Determinants of Tax Morale and Tax Compliance: Evidence from Jordan, 125–171. https://doi.org/10.1108/S1058-749720160000023005
6. Alasfour, F. (2017). Costs of distrust: The virtuous cycle of tax compliance in Jordan. Journal of Business Ethics, 1-16.
7. AL-Shawawreh, T. B., & AL-Smirat, B. Y. (2016). Economic Effects of Tax Evasion on Jordanian Economy. International Journal of Economics and Finance, 8(7), 344.
8. Andreoni, J., Erard, B., & Feinstein, J. (1998). Tax compliance. Journal of Economic Literature, 36(2), 818–860
9. Awang N., Abdullah W.F.W., Tahir N.M., Rahim N.A. (2018). An insight on the impact of norms and ethics on tax compliance. In Said R., Mohd Sidek N., Azhar Z., Anuar Kamarudin K. (eds). State-of-the-Art Theories and Empirical Evidence (pp. 41-48). Springer, Singapore.
10. Alkhdour, R. (2011). Estimating the shadow economy in Jordan: causes, consequences, and policy implications. (Unpublished doctoral thesis), Colorado State University.
11. Alm, J., Clark, J., & Leibel, K. (2016). Enforcement, socioeconomic diversity, and tax filing compliance in the United States. Southern Economic Journal, 82(3), 725–747. https://doi.org/10.1002/ soej.12106
12. Alm, J. & B. Torgler. (2006). Culture differences and tax morale in the United States and in Europe. Journal of Economic Psychology, 27, 224-246.
13. Alm, J. (1991). A perspective on the experimental analysis of taxpayer reporting. The Accounting Review, 66(3), 577–593.
14. Alm, J., & McClellan, C. (2012). Tax morale and tax compliance from the firm’s perspective. Kyklos, 65(1), 1–17.
15. Alm, J., & Torgler, B. (2004). Estimating the determinants of tax morale. Proceedings Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association, 97, 269–274.
16. Alm, J., & Torgler, B. (2006). Culture differences and tax morale in the United States and in Europe. Journal of Economic Psychology, 27, 224–246. https://doi.org/10.1016/j.joep.2005.09.002.
17. Alshir’ah, A. F., Abdul-Jabbar, H., & Samsudin, R. S. (2016). Determinants of sales tax compliance in small and medium enterprises in Jordan?: A call for empirical research. World Journal of Management and Behavioral Studies, 4(1), 41–46.
18. Alshira’h, A. F., Abdul-Jabbar, H., & Samsudin, R. S. (2018). Sales tax compliance model for the Jordanian small and medium enterprises research. Journal of Advanced Research in Social and Behavioural Sciences, 10(2), 115–130.
19. Alshira’h, A. F., & Abdul-Jabbar, H. (2019a). The effect of tax fairness on sales tax compliance among Jordanian manufacturing SMEs. Academy of Accounting and Financial Studies Journal, 23(2), 1–12.
20. Alshira’h, A. F., & Abdul-Jabbar, H. (2019b). A conceptual model of sales tax compliance among Jordanian SMEs and its implications for future research. International Journal of Economics and Finance, 11(5), 1–14.
21. Alshira’h, A. F. (2019). The Effect of peer influence on sales tax compliance among Jordanian SMEs. International Journal of Academic Research in Business and Social Sciences, 9(3), 710–721.
22. Arachi, G., & Santoro, A. (2007). Tax enforc
To cite this article: Alshira’h A. F., Abdul-Jabbar, H., Samsudin, R. S. (2019). The Effect of Tax Moral on Sales Tax Compliance among Jordanian SMEs, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (1): 30-41
Copyright: © 2019 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode