An investigation into the causes of tax non-compliance: A case of Walvis Bay

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Date
2019
Journal Title
Journal ISSN
Volume Title
Publisher
University of Namibia
Abstract
The study sought to investigate the tax non-compliance in Walvis Bay Namibia. The objectives of the study were: To assess the causes of tax non-compliance among different taxpayers in the area. To analyse the different mitigating measures that could be considered by the tax payers and the Walvis Bay IRD office to reduce the level of tax non-compliance. The study made use of secondary data gathered from the Walvis Bay IRD office. The theoretical and empirical literature review was used as a foundation for this research. The research designs for this study were causal comparative and cross sectional, with the research method being quantitative. Questionnaires were used as the research instrument. The results of the data gathered from the questionnaires assisted the researcher to reach certain conclusions on the formulated objectives. Through these results, the researcher discovered that: Level of education, Annual turnover, probability of audit and perceived punishment through fines, tax compliance cost and level, perceived opportunity for evasion, Age all have a bearing on tax non-compliance existence in Walvis Bay. The researcher was able to make recommendations to the government through its Walvis Bay Inland Revenue Department (IRD). The researcher recommends that the government should undertake a comprehensive tax reform that should include the following measures: it should monitor and curb tax evasion through increased auditing activities that is reinforcing specific units which will conduct in-depth audits (employing forensic accountants) and tax intelligence investigations, increased education of tax payers on a regular basis. The other tax reforms should be supported by a new and more efficient tax computer system whereby submissions could be made online. The establishment of the Revenue Agency to improve competency of the tax officials was also recommended, together with the universalisation of tax laws, making the laws more modest, as modest tax laws are easy to understand and comply with
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration (Management Strategy)
Keywords
Tax non-compliance, Walvis Bay, Namibia, Taxpayers, University of Namibia
Citation