Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


Tax Compliance Cost: A Review of Methodologies of Recent Studies

Author(s): Bruce-Twum, Ernest and Schutte, Danie

Several studies have been conducted over the years to estimate the amount of TCC in different countries. Some conclusions of these studies have been that TCC are high, regressive, and there are many differences between countries. However, not much is known of the methods used in TCC studies, few scholars have noted that the methodology and scope of studies vary widely. In an effort to address the gap in the literature, this paper provides a content analysis of the methodologies applied in prominent TCC studies. The analysis includes research design, data collection methods, variables used to measure TCC, techniques used to analyse data and the research orientation. Findings from the review suggest that surveys are the predominant method of collecting data, and there is very little triangulation of data collections methods. The results further showed limited studies on the computation of tax compliance benefits and other cost implications. Quantitative methods appear to be the dominant research method for TCC studies, with regression analysis and simple description of results as the primary tool for analysis. The researchers recommend an increase triangulation of data collections methods and multivariate data analysis methods tools like structural equation modelling (SEM) to improve TCC research quality.

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