Factors Influencing Income Tax E-filing: A Combined Theoretical Model Approach in Bangladesh

The Cost and Management, Volume-49, Number-06, November-December 2021

20 Pages Posted: 18 Apr 2022 Last revised: 25 Apr 2022

See all articles by Dr Kazi Abdul Mannan

Dr Kazi Abdul Mannan

Southern Cross University, Australia

Khandaker Mursheda Farhana

Shanto-Mariam University of Creative Technology

G.M. Omar Faruque Chowdhury

Elite Paint & Chemical Industries Ltd

Date Written: December 7, 2021

Abstract

E-filing of income tax return can be seen as an important means to enhance the value of services to the citizen. This paper investigates whether tax knowledge influences the level of intention of individual taxpayers to use E-filing after five years of its implementation in Bangladesh. The study examines factors that might influence taxpayers’ level of intention for E-filing based upon the theoretical framework of combined models and the concept of general knowledge about tax. The survey was conducted on 384 respondents’ individual taxpayers within the capital city of Dhaka in 2020. It shows that respondents have a high level of intention for E-filing (4.67 out of 5). Advanced statistical outputs show that perceived advantages, perceived comfortable to use and perceived subjective norms are positively associated, but perception on behavioral control and general knowledge about tax are not significantly associated with taxpayers’ intention for E-filing. The results from this study suggest that E-filing is a computerized system, just like any other system, where taxpayers’ intention to use it is also influenced by constructs within the technology acceptance model and the theory of planned behavior approach. Furthermore, the implementation of E-filing will be successful when it can provide a compulsory service delivery channel through the electronic platform. Since the National Board of Revenue (NBR) is currently promoting the use of E-filing, the results may assist the NBR to plan a more effective strategy of promoting E-filing usage among individual taxpayers in Bangladesh.

Keywords: Taxation, taxpayers, E-filing, E-government, digitization, knowledge, behavior, intention

JEL Classification: H2, H20, H21, H22, H23, H24, H25, H26, H27, H29

Suggested Citation

Mannan, Kazi Abdul and Farhana, Khandaker Mursheda and Chowdhury, G.M. Omar Faruque, Factors Influencing Income Tax E-filing: A Combined Theoretical Model Approach in Bangladesh (December 7, 2021). The Cost and Management, Volume-49, Number-06, November-December 2021, Available at SSRN: https://ssrn.com/abstract=4051213 or http://dx.doi.org/10.2139/ssrn.4051213

Kazi Abdul Mannan (Contact Author)

Southern Cross University, Australia ( email )

Lismore, New South Wales 2480
Australia

Khandaker Mursheda Farhana

Shanto-Mariam University of Creative Technology ( email )

Road #14, Sector #13
Uttara
India

G.M. Omar Faruque Chowdhury

Elite Paint & Chemical Industries Ltd ( email )

Bangladesh

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
57
Abstract Views
145
rank
500,068
PlumX Metrics