Impacting accounting education using integrated information and communication technologies
- Dasoo, Nazreen, Bornman, Marina, Rhodes, Raymond J.
- Authors: Dasoo, Nazreen , Bornman, Marina , Rhodes, Raymond J.
- Date: 2020
- Subjects: Accountancy education , Impact analysis , Information and communication technologies
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/455230 , uj:40284 , Citation: Dasoo, N., Bornman, M. & Rhodes, R.J., 2020 ‘Impacting accounting education using integrated information and communication technologies’, Journal of Economic and Financial Sciences 13(1), a540. https://doi.org/ 10.4102/jef.v13i1.540 , ISSN: (Online) 2312-2803
- Description: Abstract: Orientation: Computers, especially in the form of information and communication technologies (ICT), have changed the procedures through which bookkeeping and accounting are accomplished in business. Modern debates centre on the veracity and methodology of including of ICT in accounting education. This study assessed the impact of one method of integrating ICT in accounting education, as adopted by the University of Johannesburg (UJ) in one diploma offering. This method has been termed ‘subject integrated information and communication technologies’ (SIICT). Research purpose: The purpose of this study was to evaluate the impact that the integration of ICT into certain subjects (SIICT) has had on selected key role players of the diploma in Accounting. This section of the study evaluates this impact on the students by comparing the outcomes of two cohorts of students. Motivation for the study: In 2011, UJ replaced National Diploma offerings in Accounting with a new diploma in Accounting that integrated ICT into two core subjects. This impact study evaluated the integration, which used a theoretical model of integration that was untested in its application. Research approach/design and method: This case study, designed as an impact study, tested the impact of integrating ICT into the core modules of the diploma. Data collection was based on a mixed-method data collection model and included research questionnaires to the students, recorded observations of lecturers, interviews with lecturers and a document investigation. Main findings: The students were positively impacted through (1) completing their studies in a shorter time, (2) the time to obtain employment being shortened, (3) fewer students studying further and (4) experiencing a greater sense of work preparedness and confidence during interviews. Practical/managerial implications: The average time that students spend studying is shorter, freeing university resources and costing the student less money. Different methods of study are applied, and the students are more engaged as the subjects become more ‘real to life’. Contribution/value-add: Employers’ acceptance of the changes and the student comments reflect an earlier engagement with work at their place of employment.
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- Authors: Dasoo, Nazreen , Bornman, Marina , Rhodes, Raymond J.
- Date: 2020
- Subjects: Accountancy education , Impact analysis , Information and communication technologies
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/455230 , uj:40284 , Citation: Dasoo, N., Bornman, M. & Rhodes, R.J., 2020 ‘Impacting accounting education using integrated information and communication technologies’, Journal of Economic and Financial Sciences 13(1), a540. https://doi.org/ 10.4102/jef.v13i1.540 , ISSN: (Online) 2312-2803
- Description: Abstract: Orientation: Computers, especially in the form of information and communication technologies (ICT), have changed the procedures through which bookkeeping and accounting are accomplished in business. Modern debates centre on the veracity and methodology of including of ICT in accounting education. This study assessed the impact of one method of integrating ICT in accounting education, as adopted by the University of Johannesburg (UJ) in one diploma offering. This method has been termed ‘subject integrated information and communication technologies’ (SIICT). Research purpose: The purpose of this study was to evaluate the impact that the integration of ICT into certain subjects (SIICT) has had on selected key role players of the diploma in Accounting. This section of the study evaluates this impact on the students by comparing the outcomes of two cohorts of students. Motivation for the study: In 2011, UJ replaced National Diploma offerings in Accounting with a new diploma in Accounting that integrated ICT into two core subjects. This impact study evaluated the integration, which used a theoretical model of integration that was untested in its application. Research approach/design and method: This case study, designed as an impact study, tested the impact of integrating ICT into the core modules of the diploma. Data collection was based on a mixed-method data collection model and included research questionnaires to the students, recorded observations of lecturers, interviews with lecturers and a document investigation. Main findings: The students were positively impacted through (1) completing their studies in a shorter time, (2) the time to obtain employment being shortened, (3) fewer students studying further and (4) experiencing a greater sense of work preparedness and confidence during interviews. Practical/managerial implications: The average time that students spend studying is shorter, freeing university resources and costing the student less money. Different methods of study are applied, and the students are more engaged as the subjects become more ‘real to life’. Contribution/value-add: Employers’ acceptance of the changes and the student comments reflect an earlier engagement with work at their place of employment.
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A tax compliance risk profile of guesthouse owners in Soweto, South Africa
- Bornman, Marina, Ramutumbu, Pusheletso
- Authors: Bornman, Marina , Ramutumbu, Pusheletso
- Date: 2019
- Subjects: Tax compliance , Guesthouse owners , Tax knowledge
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/296132 , uj:32259 , Citation: Bornman, M. & Ramutumbu, P., 2019, ‘A tax compliance risk profile of guesthouse owners in Soweto, South Africa’, Southern African Journal of Entrepreneurship and Small Business Management 11(1), a181. https://doi.org/ 10.4102/sajesbm.v11i1.181
- Description: Abstract: A conceptual framework to assess the particular tax situation of small business owners identifies three key aspects that distinguish small business owners’ perceptions of their tax obligation. These aspects are: they are likely to perceive more opportunities not to comply than employed taxpayers; they are likely to lack meaningful taxation knowledge and they are likely to frame the paying of taxes as a loss. Aim: The aim of this article was to sketch a tax compliance risk profile of guest house owners in Soweto to suggest strategies to negate those factors that may negatively influence their compliance behaviour...
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- Authors: Bornman, Marina , Ramutumbu, Pusheletso
- Date: 2019
- Subjects: Tax compliance , Guesthouse owners , Tax knowledge
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/296132 , uj:32259 , Citation: Bornman, M. & Ramutumbu, P., 2019, ‘A tax compliance risk profile of guesthouse owners in Soweto, South Africa’, Southern African Journal of Entrepreneurship and Small Business Management 11(1), a181. https://doi.org/ 10.4102/sajesbm.v11i1.181
- Description: Abstract: A conceptual framework to assess the particular tax situation of small business owners identifies three key aspects that distinguish small business owners’ perceptions of their tax obligation. These aspects are: they are likely to perceive more opportunities not to comply than employed taxpayers; they are likely to lack meaningful taxation knowledge and they are likely to frame the paying of taxes as a loss. Aim: The aim of this article was to sketch a tax compliance risk profile of guest house owners in Soweto to suggest strategies to negate those factors that may negatively influence their compliance behaviour...
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Exploring work-readiness skills required by tax technician candidates
- Bornman, Marina, Soobramoney, Julia
- Authors: Bornman, Marina , Soobramoney, Julia
- Date: 2018
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/288769 , uj:31315 , Citation: Bornman, M. & Soobramoney, J. 2018. Exploring work-readiness skills required by tax technician candidates.
- Description: Abstract: Tax technicians are tax practitioners who assist tax consultants and normally work under their supervision. In South Africa, tax practitioners need to be registered with the revenue authority and a recognised controlling body to ensure that the practitioners are appropriately qualified and adhere to a code of ethics. An undergraduate diploma qualification may provide a student access to become a tax practitioner practicing as a tax technician. A candidate tax technician must apply for registration with a controlling body and will have to display competence in a knowledge component, practical skills component as well as a workplace component of the tax technician occupational qualification...
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- Authors: Bornman, Marina , Soobramoney, Julia
- Date: 2018
- Language: English
- Type: Conference proceedings
- Identifier: http://hdl.handle.net/10210/288769 , uj:31315 , Citation: Bornman, M. & Soobramoney, J. 2018. Exploring work-readiness skills required by tax technician candidates.
- Description: Abstract: Tax technicians are tax practitioners who assist tax consultants and normally work under their supervision. In South Africa, tax practitioners need to be registered with the revenue authority and a recognised controlling body to ensure that the practitioners are appropriately qualified and adhere to a code of ethics. An undergraduate diploma qualification may provide a student access to become a tax practitioner practicing as a tax technician. A candidate tax technician must apply for registration with a controlling body and will have to display competence in a knowledge component, practical skills component as well as a workplace component of the tax technician occupational qualification...
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Principles for understanding, encouraging, and rewarding voluntary tax compliance
- Authors: Bornman, Marina
- Date: 2015-09-28
- Subjects: Income tax - South Africa , Tax credits - South Africa
- Type: Thesis
- Identifier: uj:14202 , http://hdl.handle.net/10210/14645
- Description: D.Phil. (Taxation) , Any modern economy depends largely on taxation as a source of revenue and governments therefore realise the importance of having a willing taxpayer base. Many tax authorities use a compliance model to engage with taxpayers, in terms of which different strategies are used to encourage compliance, ranging from enforcement strategies on the one hand, to strategies of assisting taxpayers to comply, on the other. It is widely recognised in the literature that the majority of taxpayers are voluntarily tax compliant, but it appears that tax authorities place more emphasis on how they can enforce compliance than on how they can recognise those who are voluntarily compliant. The concept of voluntary compliance is not well defined in the literature and is commonly used in the sense of “compliance in the absence of an external enforcement action.” By means of an in-depth review of the literature from a socio-economic viewpoint, the present thesis aimed to define principles and also construct a framework for understanding voluntary tax compliance. It was found that voluntary tax compliance means the acceptance of a tax obligation by a taxpayer without having to be forced, driven by personal and internalised social norms, within a climate of trust between the taxpayer and tax authority. The framework for voluntary compliance was shown to consist of three dimensions: strong personal norms; internalised social norms; and a climate of high trust. Each dimension encompasses its own variables that also influence one another. Strategies used by tax authorities to encourage voluntary tax compliance were analysed with the aim of identifying strategies based on a power orientation, a service orientation, or a norm orientation. It was shown that different strategies influence different variables of the voluntary ii compliance framework, such as tax knowledge, fairness, trust, and ethical values. Through this analysis, principles for building a voluntary tax climate could be identified...
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- Authors: Bornman, Marina
- Date: 2015-09-28
- Subjects: Income tax - South Africa , Tax credits - South Africa
- Type: Thesis
- Identifier: uj:14202 , http://hdl.handle.net/10210/14645
- Description: D.Phil. (Taxation) , Any modern economy depends largely on taxation as a source of revenue and governments therefore realise the importance of having a willing taxpayer base. Many tax authorities use a compliance model to engage with taxpayers, in terms of which different strategies are used to encourage compliance, ranging from enforcement strategies on the one hand, to strategies of assisting taxpayers to comply, on the other. It is widely recognised in the literature that the majority of taxpayers are voluntarily tax compliant, but it appears that tax authorities place more emphasis on how they can enforce compliance than on how they can recognise those who are voluntarily compliant. The concept of voluntary compliance is not well defined in the literature and is commonly used in the sense of “compliance in the absence of an external enforcement action.” By means of an in-depth review of the literature from a socio-economic viewpoint, the present thesis aimed to define principles and also construct a framework for understanding voluntary tax compliance. It was found that voluntary tax compliance means the acceptance of a tax obligation by a taxpayer without having to be forced, driven by personal and internalised social norms, within a climate of trust between the taxpayer and tax authority. The framework for voluntary compliance was shown to consist of three dimensions: strong personal norms; internalised social norms; and a climate of high trust. Each dimension encompasses its own variables that also influence one another. Strategies used by tax authorities to encourage voluntary tax compliance were analysed with the aim of identifying strategies based on a power orientation, a service orientation, or a norm orientation. It was shown that different strategies influence different variables of the voluntary ii compliance framework, such as tax knowledge, fairness, trust, and ethical values. Through this analysis, principles for building a voluntary tax climate could be identified...
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Tax literacy in the digital economy
- Bornman, Marina, Wassermann, Marianne
- Authors: Bornman, Marina , Wassermann, Marianne
- Date: 2018
- Subjects: Tax literacy , Disruptive technology , Digital economy
- Language: English
- Type: Conference proceeding
- Identifier: http://hdl.handle.net/10210/289163 , uj:31369 , Citation: Bornman, M. & Wassermann, M. 2018. Tax literacy in the digital economy.
- Description: Abstract: Due to the digital economy the average taxpayer now has access to other income streams where the majority of transactions can be virtual transactions. Even though these transactions are virtual or takes place in the shared economy, it might still have a taxation effect for the taxpayer and they need the necessary taxation knowledge to be able to account for these transactions on their tax returns. Likewise, tax administrations are increasingly making use of advanced technologies to prevent and detect non-compliance. For some taxpayers this brings new challenges and knowledge requirements in respect of their interaction with revenue authorities. Empirical findings has shown that taxpayer knowledge is a factor influencing tax compliance and accordingly, taxpayer education is generally one of the key approaches adopted by tax authorities to improve taxpayer compliance. The concept of ‘tax literacy’ is however proposed to be a wider concept than tax knowledge alone and needs further investigation in the context of its role in taxpayer compliance. The aim of this paper is to illustrate the usefulness of a conceptual framework of tax literacy as a tool in identifying tax compliance risks for individuals in the digital economy. The risks addressed in this paper are limited to those which could result from deficits in taxpayers’ knowledge and skills, as well as a lack of information resources. Using fundamental concepts from the literature on ‘literacy’ and drawing on established theories in especially the ‘financial literacy’ domain, the concept of ‘tax literacy’ is explained in this paper and presented as a three-dimensional framework. Understanding that tax literacy is a process of ‘making meaning’ from the interaction between tax awareness and contextual knowledge. The framework illustrates three elements of tax literacy, namely 1) tax awareness, 2) contextual knowledge and skills, and 3) meaning making or informed decision making. The first element, tax awareness, refers to individuals’ understanding of their role in the fiscal exchange or social contract with government. This awareness forms the basis of the framework, as it is a necessary condition for being tax literate. The second element proposes procedural as well as a legal component of contextual knowledge and skills. The procedural context allows for a consideration of the knowledge and skills required to interact with tax authorities and having your records for tax purposes in order. The legal context refers to an understanding of how you are taxed. The third element propose that taxpayers’ engagement in fulfilling their tax obligations is the result of a social construction of their awareness and knowledge, based on own perceptions. In other words, a combination of awareness, knowledge, skills and attitude are necessary to make decisions on acting in a tax compliant manner or not. The usefulness of the proposed framework as a tool in identifying tax compliance risks for individuals in the digital economy was illustrated with highlighting examples of specialised knowledge requirements on a procedural and legal level as it pertains to individuals as taxpayers in the digital age.
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- Authors: Bornman, Marina , Wassermann, Marianne
- Date: 2018
- Subjects: Tax literacy , Disruptive technology , Digital economy
- Language: English
- Type: Conference proceeding
- Identifier: http://hdl.handle.net/10210/289163 , uj:31369 , Citation: Bornman, M. & Wassermann, M. 2018. Tax literacy in the digital economy.
- Description: Abstract: Due to the digital economy the average taxpayer now has access to other income streams where the majority of transactions can be virtual transactions. Even though these transactions are virtual or takes place in the shared economy, it might still have a taxation effect for the taxpayer and they need the necessary taxation knowledge to be able to account for these transactions on their tax returns. Likewise, tax administrations are increasingly making use of advanced technologies to prevent and detect non-compliance. For some taxpayers this brings new challenges and knowledge requirements in respect of their interaction with revenue authorities. Empirical findings has shown that taxpayer knowledge is a factor influencing tax compliance and accordingly, taxpayer education is generally one of the key approaches adopted by tax authorities to improve taxpayer compliance. The concept of ‘tax literacy’ is however proposed to be a wider concept than tax knowledge alone and needs further investigation in the context of its role in taxpayer compliance. The aim of this paper is to illustrate the usefulness of a conceptual framework of tax literacy as a tool in identifying tax compliance risks for individuals in the digital economy. The risks addressed in this paper are limited to those which could result from deficits in taxpayers’ knowledge and skills, as well as a lack of information resources. Using fundamental concepts from the literature on ‘literacy’ and drawing on established theories in especially the ‘financial literacy’ domain, the concept of ‘tax literacy’ is explained in this paper and presented as a three-dimensional framework. Understanding that tax literacy is a process of ‘making meaning’ from the interaction between tax awareness and contextual knowledge. The framework illustrates three elements of tax literacy, namely 1) tax awareness, 2) contextual knowledge and skills, and 3) meaning making or informed decision making. The first element, tax awareness, refers to individuals’ understanding of their role in the fiscal exchange or social contract with government. This awareness forms the basis of the framework, as it is a necessary condition for being tax literate. The second element proposes procedural as well as a legal component of contextual knowledge and skills. The procedural context allows for a consideration of the knowledge and skills required to interact with tax authorities and having your records for tax purposes in order. The legal context refers to an understanding of how you are taxed. The third element propose that taxpayers’ engagement in fulfilling their tax obligations is the result of a social construction of their awareness and knowledge, based on own perceptions. In other words, a combination of awareness, knowledge, skills and attitude are necessary to make decisions on acting in a tax compliant manner or not. The usefulness of the proposed framework as a tool in identifying tax compliance risks for individuals in the digital economy was illustrated with highlighting examples of specialised knowledge requirements on a procedural and legal level as it pertains to individuals as taxpayers in the digital age.
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Withholding tax on interest : who has the withholding obligation?
- Bornman, Marina, Horn, Charl, Barnard, Lizanne
- Authors: Bornman, Marina , Horn, Charl , Barnard, Lizanne
- Date: 2019
- Subjects: Withholding tax , Interest , Non-resident
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/403734 , uj:33843 , Citation: Bornman, M., Horn, C. & Barnard, L., 2019, ‘Withholding tax on interest: Who has the withholding obligation?’, Journal of Economic and Financial Sciences 12(1), a473. https:// doi.org/ 10.4102/jef. v12i1.473 , ISSN: (Online) 2312-2803
- Description: Abstract: Orientation: Non-residents receiving interest from a South African source will be taxable in terms of the gross income definition in the South African Income Tax Act. Effective 01 March 2015, new provisions for withholding of tax on interest (WTI) to non-residents were incorporated in the Act with the purpose of simplifying the collection of tax from non-residents. Research purpose: This article aimed to seek clarity on who ‘the person is who makes payment’ of the interest in order to suggest an amendment to the Act. Motivation for the study: When dealing with debt instruments, the issuer of the instrument and the ‘payer’ of the interest might not always be the same person as intermediaries might be involved in the transactions. The provisions on WTI do not clarify who has the withholding obligation in the case of an intermediary, and uncertainty may therefore arise on who the ‘payer’ of the interest is. Research approach/design and method: Using a doctrinal method, the article reviewed and interpreted South African legislation and commentary related to the topic and also turned to international legislation dealing with WTI for guidance. Main findings: It was found that the only person who would be in a position to withhold the withholding tax is the person who is seen as the last client-facing entity or intermediary. Practical/managerial implications: Two suggestions are offered with regard to amending the provisions on WTI, namely to split the withholding obligation between the issuer and the intermediary and to define ‘intermediary’. Contribution/value-add: This study provides clarity on ‘who the payer of the interest’ is on whom the withholding obligation rests.
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- Authors: Bornman, Marina , Horn, Charl , Barnard, Lizanne
- Date: 2019
- Subjects: Withholding tax , Interest , Non-resident
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/403734 , uj:33843 , Citation: Bornman, M., Horn, C. & Barnard, L., 2019, ‘Withholding tax on interest: Who has the withholding obligation?’, Journal of Economic and Financial Sciences 12(1), a473. https:// doi.org/ 10.4102/jef. v12i1.473 , ISSN: (Online) 2312-2803
- Description: Abstract: Orientation: Non-residents receiving interest from a South African source will be taxable in terms of the gross income definition in the South African Income Tax Act. Effective 01 March 2015, new provisions for withholding of tax on interest (WTI) to non-residents were incorporated in the Act with the purpose of simplifying the collection of tax from non-residents. Research purpose: This article aimed to seek clarity on who ‘the person is who makes payment’ of the interest in order to suggest an amendment to the Act. Motivation for the study: When dealing with debt instruments, the issuer of the instrument and the ‘payer’ of the interest might not always be the same person as intermediaries might be involved in the transactions. The provisions on WTI do not clarify who has the withholding obligation in the case of an intermediary, and uncertainty may therefore arise on who the ‘payer’ of the interest is. Research approach/design and method: Using a doctrinal method, the article reviewed and interpreted South African legislation and commentary related to the topic and also turned to international legislation dealing with WTI for guidance. Main findings: It was found that the only person who would be in a position to withhold the withholding tax is the person who is seen as the last client-facing entity or intermediary. Practical/managerial implications: Two suggestions are offered with regard to amending the provisions on WTI, namely to split the withholding obligation between the issuer and the intermediary and to define ‘intermediary’. Contribution/value-add: This study provides clarity on ‘who the payer of the interest’ is on whom the withholding obligation rests.
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A conceptual framework of tax knowledge
- Bornman, Marina, Ramutumbu, Pusheletso
- Authors: Bornman, Marina , Ramutumbu, Pusheletso
- Date: 2019
- Subjects: Tax knowledge , Tax compliance , Fiscal awareness
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/402381 , uj:33670 , Citation: Bornman, M. & Ramutumbu, P. 2019. A conceptual framework of tax knowledge.
- Description: Abstract: This paper aims to develop a conceptual framework of tax knowledge that can be used to analyse and discuss tax knowledge as a factor influencing tax compliance. Design - Relevant literature was sourced using keywords pertaining to tax knowledge in order to identify the constructs of the framework, thereafter secondary interview data on small business owners’ tax challenges was thematically analysed to perform a preliminary assessment of the proposed framework in order to lend further support to the suggested elements of the framework...
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- Authors: Bornman, Marina , Ramutumbu, Pusheletso
- Date: 2019
- Subjects: Tax knowledge , Tax compliance , Fiscal awareness
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/402381 , uj:33670 , Citation: Bornman, M. & Ramutumbu, P. 2019. A conceptual framework of tax knowledge.
- Description: Abstract: This paper aims to develop a conceptual framework of tax knowledge that can be used to analyse and discuss tax knowledge as a factor influencing tax compliance. Design - Relevant literature was sourced using keywords pertaining to tax knowledge in order to identify the constructs of the framework, thereafter secondary interview data on small business owners’ tax challenges was thematically analysed to perform a preliminary assessment of the proposed framework in order to lend further support to the suggested elements of the framework...
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Tax knowledge for the digital economy
- Bornman, Marina, Wassermann, Marianne
- Authors: Bornman, Marina , Wassermann, Marianne
- Date: 2020
- Subjects: Digital economy , Conceptual framework , Tax compliance
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/415889 , uj:35158 , Citation: Bornman, M., Wassermann, M. Tax knowledge for the digital economy’, Journal of Economic and Financial Sciences 13(1), a461. https://doi.org/10.4102/ jef.v13i1.461
- Description: Abstract: , Orientation: Because of the digital economy, taxpayers have access to new income streams. These virtual transactions have taxation consequences, and therefore taxpayers need specialised taxation knowledge to understand their tax obligations and act in a tax compliant manner. Research purpose: The aim of this article was to identify the unique tax knowledge requirements for individuals functioning in the digital economy by systematically reviewing literature on the tax challenges arising from this new economy. Applying a conceptual framework of tax knowledge, these knowledge requirements were categorised as either general, procedural or legal. By identifying these requirements, it was possible to point out the risks within these categories that may cause obstacles to individuals to act fully tax compliant. Motivation for the study: Understanding the different knowledge requirements of taxpayers may assist tax authorities to identify the tax compliance risks of these taxpayers in their capacity as individuals functioning in the digital economy. Research approach/design and method: A qualitative approach was used in the study through a thematic search of appropriate literature such as articles, reports, blogs and media releases. These documents were systematically reviewed to identify the knowledge requirements for individual taxpayers functioning in the digital economy. Main findings: The findings suggest that there are specific tax knowledge requirements in different areas that must be in place to ensure tax compliance in the digital economy. Any shortcomings in these areas of knowledge create the risk of non-compliance for individuals functioning in the digital economy. Practical/managerial implications: Taxpayers and tax authorities alike should take note of the risk areas identified in each area of knowledge (general, procedural and legal) and devise strategies to deal with taxation issues arising from transactions in the digital economy. Contribution/value-add: This study applied a tax knowledge framework and identified the general, procedural and legal tax knowledge requirements of individuals functioning in the digital economy. The study also pointed out associated compliance risks, which may assist tax authorities to target strategies for improving taxpayer knowledge in these three areas.
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- Authors: Bornman, Marina , Wassermann, Marianne
- Date: 2020
- Subjects: Digital economy , Conceptual framework , Tax compliance
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/415889 , uj:35158 , Citation: Bornman, M., Wassermann, M. Tax knowledge for the digital economy’, Journal of Economic and Financial Sciences 13(1), a461. https://doi.org/10.4102/ jef.v13i1.461
- Description: Abstract: , Orientation: Because of the digital economy, taxpayers have access to new income streams. These virtual transactions have taxation consequences, and therefore taxpayers need specialised taxation knowledge to understand their tax obligations and act in a tax compliant manner. Research purpose: The aim of this article was to identify the unique tax knowledge requirements for individuals functioning in the digital economy by systematically reviewing literature on the tax challenges arising from this new economy. Applying a conceptual framework of tax knowledge, these knowledge requirements were categorised as either general, procedural or legal. By identifying these requirements, it was possible to point out the risks within these categories that may cause obstacles to individuals to act fully tax compliant. Motivation for the study: Understanding the different knowledge requirements of taxpayers may assist tax authorities to identify the tax compliance risks of these taxpayers in their capacity as individuals functioning in the digital economy. Research approach/design and method: A qualitative approach was used in the study through a thematic search of appropriate literature such as articles, reports, blogs and media releases. These documents were systematically reviewed to identify the knowledge requirements for individual taxpayers functioning in the digital economy. Main findings: The findings suggest that there are specific tax knowledge requirements in different areas that must be in place to ensure tax compliance in the digital economy. Any shortcomings in these areas of knowledge create the risk of non-compliance for individuals functioning in the digital economy. Practical/managerial implications: Taxpayers and tax authorities alike should take note of the risk areas identified in each area of knowledge (general, procedural and legal) and devise strategies to deal with taxation issues arising from transactions in the digital economy. Contribution/value-add: This study applied a tax knowledge framework and identified the general, procedural and legal tax knowledge requirements of individuals functioning in the digital economy. The study also pointed out associated compliance risks, which may assist tax authorities to target strategies for improving taxpayer knowledge in these three areas.
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