A comparative analysis of the effects of public tax education and tax amnesty on tax compliance in Windhoek
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Date
2020
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Publisher
University of Namibia
Abstract
This study was conducted with the aim of comparing the effects of public tax education
and tax amnesty on tax compliance. The Ministry of Finance (MoF) as the custodian of
the management and administration of state funds grapples with a widening budget deficit
which is becoming untenable. The Revenue department has accumulated massive tax
debts spanning over many decades. This has been aggravated by the imposition of
compound interest on outstanding amounts. In most cases, the amount owing now exceeds
the capital amount. The causal-comparative research design was adopted in this study as
it identifies differences between dependent variables and independent variables.
Quantitative research methods with a self-administered questionnaire were used to collect
data from taxpayers. A probability sampling frame was then used to ensure that every
taxpayer had an equal chance ofbeing selected. Analysis ofVariance (ANOVA) was used
to test the research hypothesis because it requires fewer measurements to discover
significant effects. Furthermore, descriptive statistics such as frequencies and percentages
were used in order to explain the effects of public tax education and tax amnesty on tax
compliance among Windhoek CBD taxpayers. Based on the outcomes, it comes out
clearly that the Inland Revenue Department had no educational programs in place to
provide training, teaching, and education to taxpayers. All that they do currently is to
remind taxpayers about their tax obligations and compliance while the public lack basic
skills and knowledge regarding tax. Whilst it seems that the tax amnesty is aimed at
increasing tax revenues in the State Budget, only a handful of taxpayers came forward to
participate in the program and the Inland Revenue Department did not collect as much
debt owed as expected. The Inland Revenue Department needs to do more to come up
with educational strategies to educate tax-payers and ensure that tax-payers gain basic
knowledge, especially on filling tax-return forms. They also need to educate taxpayers
and create awareness on the importance of tax amnesty programs by ensuring that the
public understands the benefits and consequences of the program. Both tax amnesty and
tax education programs if well implemented could help to enhance the level of compliance
which would help taxpayers to comply voluntarily through all possible ways
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration Finance
Keywords
Public tax education, Ministry of Finance (MoF), Budget deficit, Tax compliance, Namibia, University of Namibia, Windhoek