Ilomata International Journal of Tax and Accounting
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Tax Audits, Penalties, Enforcements, and Tax Compliance Among Small Retail Firms
No full textA major problem in developing countries, including Ghana, is the high rate of tax evasion. This has adverse implications for development as the government largely relies on tax revenue for embarking upon national developmental activities. There is therefore a need to explore avenues to prevent tax evasion and increase tax revenue by adopting measures that promote tax compliance. This study examined the effect of tax audits, firm knowledge, and tax penalty enforcement on tax compliance among firms in the Kumasi Metropolis in Ghana. The quantitative research approach was adopted. A sample of 50 firms was randomly selected. A logit multivariate regression technique was employed to analyze data. In relation to firm size, the study finds that tax audit, the firm’s knowledge and awareness of tax penalties, and the enforcement of tax penalties are positively related to tax compliance. The study therefore recommends that tax authorities increase tax auditing activities, disseminate more information on tax penalties, and enforce these penalties effectively. Through education, auditing, and enforcement of tax penalties, tax evasion could be reduced
The Effect of Tax Expense Efficiency, Debt to Equity Ratio and Firm Size on Return on Assets
No full textThis study looks at the impact of Firm Size, Debt to Equity Ratio, and Tax Expense Efficiency on Return on Assets in coal subsector companies listed on the Indonesia Stock Exchange between 2017 and 2024. There are seven firms in the sample, which results in 56 firm-year observations. “Pooled ordinary least squares (OLS) regression is used in the empirical analysis on firm-year data, and diagnostic tests are used to confirm that the calculated connections are reliable”. The findings show that the regression model as a whole is statistically significant, indicating that the independent variables work together to explain changes in Return on Assets. However, partial test findings reveal that Firm Size has a positive and statistically significant impact on Return on Assets, the Debt to Equity Ratio has a negative and statistically significant association, and Tax Expense Efficiency has no statistically significant influence. These results suggest that business size and capital structure have a greater impact on profitability in the coal subsector than does tax expense efficiency. By offering sector-specific data from a capital-intensive industry, this study adds to the body of literature by emphasizing the significance of financing choices and operational scale in determining business profitability as well as the limited relevance of tax efficiency under stringent regulatory frameworks
The Moderating Role of Institutional Quality on the Nexus Between NPL and Performance Metrics of ROE, ROA and CAR
No full textThe study explores the moderating effect of institutional quality (INSTQ) on the nexus amongst NPLs and bank performance in Ghana. Employing fixed-effects panel data from 2007 to 2021, and controlling for unobserved heterogeneity, the study offered robust insights into credit risk forces in a developing economy. The discoveries disclose a contradictory positive, and substantial relationship between NPLs and ROA and CAR. However, the influence of NPLs on ROE was positive, but not statistically substantial. Institutional quality exerted direct and significant influence on ROA, ROE and CAR. The interface term operating between NPLs and institutional quality is negative, demonstrating that INSTQ effectively decreases the influence of NPL on performance. Thus, the effects of NPLs on performance are significantly reduced in environments with stronger institutional qualities. While inflation rate shows negative and insignificant relationship with performance, GDP growth is positively related to ROE, albeit insignificant for ROA and CAR. The originality of this study lies in its empirical demonstration of the controlling role of INSTQ in an emerging economy. These findings have significant policy implications, underscoring the need to strengthen regulatory institutions and credit risk governance. Future research needs deeper investigation into the specific disaggregated dimensions of institutional quality and the impacts on performance
Micro Credit and Poverty Alleviation in Nigeria: Evidence from Selected Agribusiness Cooperative Societies in Oyo State
Full text linkPoverty is one of the world's biggest issues, particularly in third-world countries. Nigeria is not an exception to the rule that governments everywhere have been developing various economic and social policies or programs to lower the poverty rate inside their borders. It is well known that cooperative groups, particularly at the medium and micro levels, have proven essential to economic progress. This study investigates the impact of micro-credit on poverty eradication in Nigeria. To examine whether microcredit facilitates a decline in poverty, we use a simple linear model to test the hypothesis that cooperative societies greatly impact poverty, using primarily sourced data from Cooperative Societies in Oyo State. The impact of timely access to micro-credit, credit lending rate, and technical support have negative and significant coefficients of -0.229, -0.242, and -0.231. This supposes that any increase in all variables will result in a drop in poverty alleviation among agribusiness cooperators. The outcome demonstrates that a cooperative society has significantly raised the living standards of its members. This shows that cooperative societies are important in reducing poverty. They offer financial and technical services, which help low-income earners whom traditional financial institutions do not primarily support. We suggest using legislative approaches to keep cooperative societies relevant to Nigeria's efforts to reduce poverty
Impact of Social Responsibility on Income Tax: Empirical Evidence from Nigeria
Full text linkIntroduction: the study investigated the relationship between community responsibility and effective income tax rate of listed insurers in Nigeria; determined the relationship between environmental responsibility and effective income tax rate of listed Insurers in Nigeria; examined the relationship between ethical responsibility and effective income tax rate of listed insurers in Nigeria; examined the relationship between firms’ diversity and effective income tax rate of listed insurers in Nigeria
Method: The ex-post facto research design was employed and on published sourced from the Audited Annual Reports of the Listed Insurers between the periods of 2013-2022. The data were pre-tested using descriptive statistics, stationarity (unit) root test, Johansen co-integration. The hypotheses were analyzed using fixed effect (panel data).
Result: The findings revealed that (p=0.8909>0.05) which indicated that there is no enough evidence to reject the null hypothesis one. Thus, community responsibility has no significant relationship with effective income tax rate of listed insurers in Nigeria. Similarly, the environmental responsibility indicated (p=0.4889>0.05) on effective income tax rate, which implied that environmental responsibility has no significant relationship with effective income tax rate of listed insurers in Nigeria. Ethical responsibility depicted (P=0.4801>0.05) on effective income tax rate, which implied that the ethical responsibility has no significant relationship with effective income tax rate of listed insurers in Nigeria. And Firms’ diversity showed (p = 0.7930 < 0.05) effective income tax rate, which revealed that the firms’ diversity has no significant relationship with effective income tax rate of listed insurers.
Conclusion: The study concluded that community responsibility, environmental responsibility, ethical responsibility and firms’ diversity have no connection with corporate income tax of the listed insurance companies
Dynamics of Tax Avoidance for the Construction Companies in Indonesia: A Study Financial Factor
Full text linkThis study examines tax avoidance in Indonesia’s construction sector, focusing on the influence of profitability, capital intensity, and sales growth. Using data from 15 publicly traded construction firms on the Indonesia Stock Exchange (2020–2022), multiple linear regression analysis was applied to assess the relationship between these financial factors and tax avoidance, measured by the Effective Tax Rate (ETR). The research utilizes quantitative techniques to examine information from 15 construction firms that are publicly traded on the Indonesia Stock Exchange during the period of 2020-2022. Multiple linear regression analysis was used to analyze the data and examine the correlation between profitability, capital intensity, sales growth, and tax avoidance represented by the effective tax rate(ETR). These findings highlight the need for stricter monitoring of asset-intensive firms, as they tend to exploit tax-saving opportunities. Policymakers should evaluate depreciation-related tax benefits to ensure fair tax contributions and introduce enhanced disclosure requirements for high-growth firms. Strengthening regulatory oversight can prevent aggressive tax planning and promote equitable tax compliance. Future research could explore the role of corporate governance and industry-specific tax incentives in shaping tax behavior. Expanding the analysis to other sectors and regions would provide a broader understanding of corporate tax strategies. Ultimately, this study underscores the importance of balancing tax efficiency with regulatory compliance to ensure fiscal sustainability and a fair tax syste
Financial Performance of Jakarta Hospitals Before and After the COVID-19 Pandemic: Analysis of Profitability, Liquidity, and Leverage Ratios
Full text linkThe COVID-19 pandemic has had a significant impact on the healthcare sector, particularly on hospitals, which faced operational and financial challenges due to increased operational costs and changes in service patterns. This study aims to evaluate the financial performance of hospitals in Jakarta before, during, and after the COVID-19 pandemic. The analysis was conducted using financial ratios, including Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM) to measure profitability; Current Ratio and Quick Ratio to measure liquidity; and Debt to Asset Ratio (DAR) and Debt to Equity Ratio (DER) to measure leverage. This study employed a quantitative descriptive method using secondary data in the form of financial statements from hospitals in Jakarta for the period 2018–2024. The results showed that profitability, liquidity, and leverage ratios experienced significant improvements during the pandemic compared to the pre-pandemic period. The Indonesian government's policy of funding COVID-19 patients played a major role in enhancing hospital financial performance during the pandemic. Furthermore, the financial performance of hospitals in Jakarta demonstrated a significant improvement post-pandemic compared to the pre-pandemic period. These findings provide valuable insights for hospital management and policymakers in formulating financial strategies to enhance the sustainability of hospital operations in the post-pandemic era
The Power of Words: Decoding the Nexus of Impression Management Tactics in South African SOEs' Annual Reports that Shape Stakeholder Perception
No full textThis topic investigates the nexus, between textual features in chairperson’s reports and their effectiveness in shaping stakeholder perceptions in South African SOEs. These voluntary sections are prone to manipulation to mask poor governance and maladministration. SOEs are key to South Africa’s economic development, but their declining performance prompted this analysis. Using secondary data from SOEs’ annual reports, a quantitative content analysis approach was applied. Signaling theory guided interpretation. The study examined the chairperson’s report by analyzing variables such as report length, positive and negative sentiments, personal references, and passive language in both profitable and non-profitable SOEs. Findings showed both profitable and non-profitable SOEs use impression management. Profitable SOEs had longer reports and more words, but report length differences were not significant. Profitable SOEs also used more personal references, though marginally. Both categories employed a similar proportion of positive tone, surpassing negative tone. Non-profitable SOEs used more passive voice, but the difference was minimal. This study highlights how signaling theory applies to public sector disclosures, offering insights for stakeholders into how impression management may shape the presentation of SOE performance. It aids users in recognizing tactics used by SOEs to maintain relevance amid persistent poor outcomes
The Correlation of Investment Securities and the Returns of Pension Fund Administrators in an Emerging Economy
Full text linkThe pension fund administrators (PFAs) are saddled with the responsibility to manage and invest pension contributions on behalf of employees through investment in securities and the earnings from the investments. The PFAs are constantly faced with the problem of the optimization of financial performance of assets to make investment on. In line with theory, econometric offers the correlation frameworks as a simple and efficient way to resolve and understand the relationship between financial assets and financial returns. We applied the Pairwise correlation approach on published information of the National Pension Commission (PENCOM) during 2007 to 2021, to evaluate the connection between four financial assets that the PFAs in Nigeria invest in and the investment returns. In sum, two of the securities – money market securities and mutual funds – have positive relationship with the PFAs’ returns, and the other two considered – the federal government securities and private equity funds – have negative relationship with the PFAs’ returns. Only the correlation between the growth of investment return and investment in money market securities is moderate and significant, whereas others are low and insignificant, thus leading us to refute the first hypothesis, maintaining others. This offers insights into factors that affects their financial performance and investment strategies to be put in place to optimize return which in turn will benefit their contributors. The outcome provides policymakers and regulators with a comprehensive overview of the entire investment securities and performance of administrators
The Influence of Tax Dispute Resolution Mechanisms: Legal Contributions of Tax Consultants and Tax Attorneys in Indonesia
Full text linkThis study examines the roles of tax consultants and tax attorneys in resolving tax disputes in Indonesia, emphasizing their contributions to tax compliance, dispute resolution, and litigation. As tax regulations become increasingly complex, taxpayers encounter significant challenges in understanding and fulfilling their tax obligations, mainly when disputes arise with the Directorate General of Taxes. The involvement of tax professionals is essential in mitigating risks, ensuring compliance, and navigating intricate legal frameworks. Despite extensive research on tax compliance and litigation as separate subjects, limited studies explore the complementary functions of tax consultants and attorneys in the Indonesian context. This paper addresses this gap by analyzing their collaborative roles in providing advisory services, representing clients in disputes, and safeguarding taxpayer rights. This study uses a qualitative research methodology to review relevant tax regulations and incorporates insights from interviews with tax professionals. The findings reveal that tax consultants primarily assist in tax planning, compliance, and dispute prevention, while tax attorneys focus on legal representation and advocacy in tax litigation. Their collaboration is instrumental in minimizing financial penalties, expediting dispute resolution, and enhancing taxpayer confidence. Strengthening the synergy between these professions can lead to a more effective tax administration system, fostering fairness, legal certainty, and improved taxpayer trust in Indonesia’s tax regime