Open Access Short Research Article

Modeling the Probability of the Detection Process of Tax Evasion Taking into Account Quality and Quantity Indicators

Akif Musayev, Mirvari Gazanfarli

Asian Journal of Economics, Business and Accounting, Page 28-37
DOI: 10.9734/ajeba/2020/v18i430291

Aims: In contrast to the classical approaches of the standard model of tax evasion based on game theory, our manuscript has considered the detection of tax evasion as one of the main function of tax administration and has proposed a model for assessing the probability of tax evasion taking into consideration qualitative and quantitative indicators.

Study Design: This investigation has been carried out on the basis of research methods such as scientific abstraction and systematic analysis, expert evaluation, logical generalization, statistical analysis.

Place and Duration of Study: Department of Mathematical provision of economic researches, between November 2019 and May 2020.

Methodology: For the evaluating of the probability of tax evasion’s detection firstly, efficiency indicators of tax administration were selected including 3 groups such as internal environmental, external micro, and external macro-environmental factors. These indicators consist of both quantitative as well as qualitative indicators. Quantitative indicators were assessed on the base on statistics information base. Quantitative indicators were assessed on the base of expert skills, knowledge, and experiences in accordance with under investigation countries. The objectiveness of obtained data that characterize qualitative indicators was checked and used both these as well as quantitative indicators for formulating the tax efficiency index. The next step is consists of using these formulations for evaluating the probability of detection of tax evasion under uncertainty. The impact degrees (membership functions) of the parameters that characterize the influence of 3 groups-environmental factors, in the detection of tax evasion were defined, and taking them into account in the fuzzy inference system probability of detection of tax evasion was assessed.

Limitations: Lack or uncertainties of the information base cause difficulties in applying our model.

Results: The probability of detection of tax evasion in the Republic of Azerbaijan was assessed with the proposed model and depends on the results recommendations have been consulted for improving appropriate tax system. As a result of model the probability of detection of tax evasion was defined 29%. The result shows that tax administration mechanism in Azerbaijan Republic need to be improved.

Conclusion: Proposed model drives practical significance as a providing effective activity of tax institutions by defining the level of tax administration, as well as, as an impacting remarkably the revenue of state budget by determining the probability of tax evasion's detection.

Open Access Original Research Article

Alternative Financing for Micro-Level Entrepreneur in Sub-Sahara Africa: A Crowd Funding Option

Nkechi Ojiagu, Faith Onwuchekwa, Hope Nzewi

Asian Journal of Economics, Business and Accounting, Page 1-8
DOI: 10.9734/ajeba/2020/v18i430288

An inherent problem that entrepreneurs face at the early stage of their entrepreneurial initiative is to source capital. Given the difficulties in raising the needed funds to actualize their ideas through traditional fund lenders such as banks, this paper provided a background on crowd funding as an alternative financing source for micro-entrepreneurship in Sub-Sahara Africa. Literature was reviewed on micro-level enterprises and micro-entrepreneur, describing the concept of crowd funding and models. This paper adopted the equity-based crowd funding model for Sub-Sahara African micro-entrepreneurs because of its potential benefits over other models. It recommended amongst others that development workers, policymakers and aid organizations need to make considerable efforts to bridge the knowledge gap of micro-entrepreneurs in the subcontinent on crowd funding by creating in-depth awareness considering the 0.1% Africa involvement in global crowd funding activity.

Open Access Original Research Article

Government Expenditure and Regional Economic Growth: The Direction of Causality

Naftaly Mose

Asian Journal of Economics, Business and Accounting, Page 9-17
DOI: 10.9734/ajeba/2020/v18i430289

This study examines the link between government expenditure and regional economic growth, over the period 2013 to 2017. Gross County Product per capita growth is used as indicator of regional economic growth. This study used Error Correction Model and Engle and Granger framework two step procedure to investigate the long-run and short-run equilibrium relationship between expenditure and regional growth. The analysis reveals that expenditure and regional growth are co-integrated and, hence a long-run equilibrium relationship exist between them. Non-devolved expenditure is found to be significant in determining regional growth and growth significantly affect non-devolved in short-run. Further, short-run uni-directional causality was detected between capital, recurrent expenditures and growth. This study argues that expansionary government expenditure accelerates regional economic growth in long-run. The absence of a long-run causality moving from growth to components of expenditure implies that economic growth macroeconomic policies can be implemented without adversely affecting the size of government expenditure.

Open Access Original Research Article

Modelling Human Capital Resource Mobilisation Practices for Sustaining Business Productivity among Small Businesses in Nigeria

M. C. Okafor, J. C. Ihemeje, Efanga, Udeme Okon, Kayadi, Biradawa, H. A. Yamta

Asian Journal of Economics, Business and Accounting, Page 18-27
DOI: 10.9734/ajeba/2020/v18i430290

Human capital has long been argued as a critical resource in most companies for sustaining development of business productivity. The study empirically determined the effect of human capital resource capacity on sustainable increase in productivity of agro-allied small businesses in Nigeria. The instrumentality of this study is the research questions structured in a five-point likert scale. The Linear Regression Analysis used to test the hypotheses. Statistical Packages for Social Sciences (SPSS) was used to aid the data analysis. The study discovered that human capital has positive and significant effect on sustainable increase in productivity of agro-allied small businesses in Nigeria. The study recommended education the small business entrepreneurs on the benefits of equity financing as a viable option towards business growth and expansion.

Open Access Original Research Article

Predicting Taxpayers Attitudes towards of Indian Tax Payers towards the E-Return Filling: An Empirical Study of Delhi, NCR, India

Ruhee Mittal, Bishwajeet Prakash, . Vishal

Asian Journal of Economics, Business and Accounting, Page 38-45
DOI: 10.9734/ajeba/2020/v18i430292

The aim of the present study is to examine the attitude, awareness, perception of the individual tax-payers in Delhi, National Capital Region (NCR) towards the e-filling tax portal started by Government of India (GOI). The study is based on the quantitative variables in which different dimension of Technology acceptance model [1], are taken for assessing the individuals behaviour towards e-filing. The data is collected from 200 individual tax payers through purposively sampling method from Delhi NCR region. The findings of the study indicate that the e-tax filling has reduced the cost, time, convenience, improve the efficiency, and better from traditional method of tax filling procedures. The study reveals that age, education level and gender of the individuals are affecting the attitude, perception and awareness towards the e-tax filling tax system.  This study makes a novel attempt to identify or to examine the tax payers’ satisfaction, problems they face in filing ITR online, awareness levels, and their perception towards E-filing system. The work has a relevant practical justification, to evaluate the user’s satisfaction with Online Import Declaration system, used to make it more transparent and secure, both for taxpayers and for the government. In this way, the study contributes to increasing the efficiency of the collection system, making the financing of the public projects more viable, without the need to increase the tax burden.