Religious factors on tax non-compliance: evidence from Libyan self-employed
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DOIhttp://dx.doi.org/10.21511/ppm.18(1).2020.24
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Article InfoVolume 18 2020, Issue #1, pp. 278-288
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Tax non-compliance phenomenon has become a key issue for developing countries such as Libya because it hinders taxpayers from contributing effectively to the economy. Previous literature refers to diverse socio-psychological factors that influence tax non-compliance behavior. Nevertheless, there is a lack of study on the influence of religious factors on tax non-compliance. Therefore, the current study empirically examines the impact of Islamic perspective and Islamic religiosity on tax non-compliance behavior among self-employed taxpayers in Libya. A quantitative method using a questionnaire is utilized to collect the data. Structural equation modeling was employed using PLS. This study provides empirical evidence that Islamic perspective and Islamic religiosity have a significant positive relationship with tax non-compliance among Libyan self-employed. Theoretically, the findings have extended the body of knowledge by providing empirical evidence on the effect of religious factors on tax non-compliance. Practically, the study provides fruitful insights for policymakers and government officials to consider these factors as crucial while formulating taxation policies to minimize the phenomenon of tax non-compliance among Libyan individual taxpayers and, hence, increase government revenue.
- Keywords
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JEL Classification (Paper profile tab)H26, H29, M41
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References56
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Tables4
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Figures2
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- Figure 1. Outer loading
- Figure 2. Path coefficients
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- Table 1. Descriptive statistics of latent variables
- Table 2. Convergent validity
- Table 3. Discriminant validity
- Table 4. Path coefficient
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