Title: Business students' perceptions of tax evasion: a study in Bangladesh

Authors: Md. Harun Ur Rashid; Afzal Ahmad

Addresses: Department of Economics & Banking, International Islamic University Chittagong (IIUC), Kumira, Chattogram-4318, Bangladesh ' Department of Business Administration, IIUC, Chattogram-4318, Bangladesh

Abstract: The study aims to examine the factors that influence the business students' perceptions of tax evasion. The study has used structural equation modelling (SEM) to analyse data collected from the business students of Bangladesh. Research reveals a significant and positive impact of the lack of fairness, corruption, complexity in the tax system, and lack of tax knowledge and lack of audit on tax evasion. The findings imply that the higher the corruption and complexity in a tax system and the lower the fairness, audit probability and tax knowledge, the greater the tax evasion. The study is expected to offer a valuable insight to the policymakers, tax authorities and the governments reforming a sound tax framework in such a way that the taxpayers will comply voluntarily.

Keywords: tax evasion; tax evasion behaviour; business students' perceptions; structural equation modelling; SEM; developing country; Bangladesh.

DOI: 10.1504/IJAF.2020.10042340

International Journal of Accounting and Finance, 2020 Vol.10 No.4, pp.233 - 247

Accepted: 07 Jun 2021
Published online: 08 Nov 2021 *

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