EFFECT OF TAX COMPLIANCE DECISION FRAMEWORK ON QUALITY OF TAX FINALIZATION REPORT: SMALL AND MEDIUM BUSINESSES IN VIETNAM

Abstract

Effective tax administration in each country is not easy because taxpayers always tend to reduce or evade taxes to maximize income or minimize perceived loss. The study aimed to determine the influence of taxpayers' decision framework and tax consciousness on the quality of tax finalization reports, inherited from the theoretical framework of tax compliance for business owners by Kamleitner et al. (2012). Research data were collected from 204 businesses and 82 tax staff at 34 Tax Departments. SEM linear structure analysis is used to analyze data and test the suitability of the proposed research model. The research results show that taxpayers' decision-making framework and awareness positively and significantly influence the quality of tax finalization reports. However, the interesting finding in this study is that the quality of the tax finalization report is guaranteed or not depends on the decision-making framework of the taxpayer, even if the taxpayer is conscious of tax obligations.