Template-type: ReDIF-Article 1.0
Author-Name: Munyaradzi Duve
Author-Email: mduve@gzu.ac.zw
Author-Workplace-Name: DEPARTMENT OF ACCOUNTING _ INFORMATION SYSTEMS_ GREAT ZIMBABWE UNIVERSITY_ MASVINGO_ ZIMBABWE
Author-Name: Daniel P. Schutte
Author-Email: danie.schutte@nwu.ac.za
Author-Workplace-Name: SCHOOL OF ACCOUNTING SCIENCES_ NORTH-WEST UNIVERSITY_ POTCHEFSTROOM_ SOUTH AFRICA
Title: A Critical Review of the Characteristics of Presumptive Tax Systems in Developing Countries
Abstract: This paper considers the effect of the presumptive tax system characteristics on the tax compliance behaviour of small
businesses in developing countries. Since the concept of presumptive taxation involves several features influencing the
formalisation of small businesses, this paper seeks to survey three key areas of literature: targeted taxpayers,
thresholds and timeframe. This paper differs fundamentally from previous studies in that it analyses presumptive tax
system characteristics. A descriptive review approach was followed in evaluating the empirical literature on
presumptive tax system characteristics. A content analysis was then performed on literature about categories and subcategories
provided in the classification framework. The review highlights similarities and conflicting evidence of
presumptive tax system characteristics in transforming the compliance behaviour of small businesses. It was concluded
that the blended use of information technology and existing presumptive tax systems can facilitate the movement of
small businesses from the informal to the formal sector.
Classification-JEL: H25; H71; O1
Keywords: presumptive tax system; targeted taxpayers; threshold; timeframe; tax compliance behaviour
Pages: 27-43
Number: 02
Volume: 17
Year: 2021
File-URL: http://tmp.gtk.uni-miskolc.hu/volumes/2021/02/TMP_2021_02_03.pdf
File-Format: application/pdf
Handle: RePEc:mic:tmpjrn:v:17:y:2021:i:02:p:27-43