Staff Competence, Support Services, and VAT Collection Performance: Does Managerial Performance Mediate the Relationship?
DOI:
https://doi.org/10.48165/sajssh.2022.3507%20Keywords:
Staff competence, support services, managerial performance, VAT collectionAbstract
VAT collection is a major issue for several governments around the world. Different countries have applied different techniques to enhance VAT collection. Likewise, the UAE government has introduced VAT and its collection is challenging for them. One of the key issues that has been observed in the literature is that support services are limited, and the staff appointed for collection is incompetent and require proper training. Similarly, the managerial role at the same time cannot be ignored. Therefore, the purpose of the study is to identify the mediating role of managerial performance between staff competence, support services and VAT collection performance. For the said purpose, primary quantitative causal research has been conducted using adopted questionnaires. The findings of the study are based on structural equation modeling technique and contributed to Economic Theory of Tax Compliance by identifying the mediating role of managerial performance. The study is equally important for the practitioners in understanding the importance of boosting staff competence and provision of support services for enhancing VAT collection.
References
Abiola, J., & Asiweh, M. (2012). Impact of tax administration on government revenue in a developing economy-a case study of Nigeria. International Journal Of Business And Social Science, 3(8).
AF, R. M., & Arisha, A. (2018). Research methodology in business: A starter’s guide (Vol. 5). Management and Organizational Studies.
Ainsworth, R. T. (2017). "The first real-time blockchain VAT-GCC solves MTIC fraud. Boston Univ. School of Law, Law and Economics Research Paper, 17-23.
Alkhuzaie, A. S., & Asad, M. (2018). Operating cashflow, corporate governance, and sustainable dividend payout. International Journal of Entrepreneurship, 22(4), 1-9.
Almansour, A. Z., Asad, M., & Shahzad, I. (2016). Analysis of corporate governance compliance and its impact over return on assets of listed companies in Malaysia. Science International, 28(3), 2935-2938.
Anjulo, L. A., & Waje, S. S. (2018). Factors affecting the performance of Value Added Tax/VAT/revenue collection administration practices: In case of Wolaita zone revenue authority, Southern Ethiopia. Research Journal of Finance and Accounting, 9(21), 46-56.
Asad, M., Ahmad, I., Haider, S. H., & Salman, R. (2018). A critical review of Islamic and conventional banking in digital era: A case of Pakistan. International Journal of Engineering & Technology, 7(4.7), 57-59.
Asad, M., Asif, M. U., Khan, A. A., Allam, Z., & Satar, M. S. (2022). Synergetic effect of entrepreneurial orientation and big data analytics for competitive advantage and SMEs performance. 2022 International Conference on Decision Aid Sciences and Applications (DASA) (pp. 1192-1196). Chiangrai, Thailand: IEEE. doi:10.1109/DASA54658.2022.9765158
Asad, M., Haider, S. H., & Fatima, M. (2018). Corporate social responsibility, business ethics, and labor laws: A qualitative analysis on SMEs in Sialkot. Journal of Legal, Ethical and Regulatory Issues, 21(3), 1-7.
Asad, M., Shabbir, M. S., Salman, R., Haider, S. H., & Ahmad, I. (2018). "Do entrepreneurial orientation and size of enterprise influence the performance of micro and small enterprises? A study on mediating role of innovation. Management Science Letters, 8 (10), 1015-1026. doi:10.5267/j.msl.2018.7.008
Asad, M., Tabash, M. I., Sheikh, U. A., Al-Muhanadi, M. M., & Ahmad, Z. (2021). Gold-oil exchange rate volatility, Bombay stockexchange and global financial contagion 2008:
Application of NARDL model with dynamic multipliers for evidences beyond symmetry. Cogent Business & Management, 7, 1-30. doi:https://doi.org/10.1080/23311975.2020.1849889
Asif, M. U., Asad, M., Bhutta, N. A., & Khan, S. N. (2021). Leadership behavior and sustainable leadership among higher education institutions of Pakistan. Sustainable Leadership and Academic Excellence International Conference (SLAE) (pp. 1-6). Manama, Bahrain: IEEE Xplore. doi:10.1109/SLAE54202.2021.9788081
Asif, M. U., Asad, M., Kashif, M., & Haq, A. u. (2021). Knowledge exploitation and knowledge exploration for sustainable performance of SMEs. 2021 Third International Sustainability and Resilience Conference: Climate Change (pp. 29-34). Sakheer: IEEE. doi:10.1109/IEEECONF53624.2021.9668135
Aydiner, A. S., Tatoglu, E., Bayraktar, E., & Zaim, S. (2019). Information system capabilities and firm performance: Opening the black box through decision-making performance and business-process performance. International Journal of Information Management, 47, 168-182.
Bashir, A., & Asad, M. (2018). Moderating effect of leverage on the relationship between board size, board meetings and performance: A study on textile sector of Pakistan. American Scientific Research Journal for Engineering, Technology, and Sciences (ASRJETS), 39(1), 19-29.
Bilal, Z. O., & Sulaiman, M. A. (2021). Factors persuading customers to adopt Islamic banks and windows of commercial banks services in Sultanate of Oman. Review of International Geographical Education Online, 11(4), 651-660.
Bornman, M., & Wassermann, M. (2020). Tax knowledge for the digital economy. Journal of Economic and Financial Sciences, 13(1).
Chake, Z. (2019). An assessment of practice, performance and challenges of tax administration: In the case of ministry of revenue, eastern addis ababa small tax payers branch.
Chege, A., Kiragu, N., Lagat, C., & Muthoni, G. (2015). Effect of electronic fiscal devices on VAT collection in Tanzania: A case of Tanzania revenue authority. European Journal of Business and Management, 7(33), 125-133.
Chethiyar, S. D., Asad, M., Kamaluddin, M. R., Ali, A., & Sulaiman, M. A. (2019). Impact of information and communication overload syndrome on the performance of students. Opción, 24, 390-405.
Damer, N., Al-Znaimat, A. H., Asad, M., & Almansour, A. Z. (2021). Analysis of motivational factors that influence usage of Computer Assisted Audit Techniques (CAATs) auditors in Jordan. Academy of Strategic Management Journal, 20(Special Issue 2), 1-13.
Economics, C. (2008). Study on reduced VAT applied to goods and services in the member states of the european union. Directorate General Taxation and Customs Union, European Commission.
Emsley, D. (2003). Multiple goals and managers’ job‐related tension and performance. Journal of Managerial Psychology .
Fadhel, H. A., Aljalahma, A., Almuhanadi, M., Asad, M., & Sheikh, U. (2022). Management of higher education institutions in the GCC countries during the emergence of COVID-19: A review of opportunities, challenges, and a way forward. The International Journal of Learning in Higher Education, 29(1), 83-97. doi:https://doi.org/10.18848/2327- 7955/CGP/v29i01/83-97
Feld, L. P., & Frey, B. S. (2006). Tax evasion in Switzerland: The roles of deterrence and tax morale. Tax Evasion, Trust and State Capacities, 3, 123-153.
Fjeldstad, O.-H., Kagoma, C., Mdee, E., Sjursen, I. H., & Somville, V. (2020). The customer is king: Evidence on VAT compliance in Tanzania. World Development, 128. doi:https://doi.org/10.1016/j.worlddev.2019.104841
Gangl, K., Kirchler, E., Lorenz, C., & Torgler, B. (2015). Wealthy tax non-filers in a developing country: Taxpayer knowledge, perceived corruption and service orientation in Pakistan. Social Sciences Research Network, 1-27.
Grown, C., & Imraan Valodia, e. (2010). Taxation and Gender Equity: A comparative analysis of direct and indirect taxes in developing and developed countries (Vol. 58). IDRC.
Haider, S. H., Asad, M., & Aziz, A. (2015). A survey on the determinants of entrepreneurial training effectiveness among micro finance institutions of Malaysia. Mediterranean Journal of Social Sciences, 6(6 S4), 396-403. doi:10.5901/mjss.2015.v6n6s4p396
Hamid, N. A., Echee, M., Benlahcene, A., & Lubana, A. (2020). The relationship of Personality Traits and Academic and Social Self Efficacies of Learning Disabilities (LD) Learners . South Asian Journal of Social Sciences and Humanities, 1(1), 9–24. Retrieved from https://acspublisher.com/journals/index.php/sajssh/article/view/1121
Hammad, S. A., Jusoh, R., & Ghozali, I. (2013). Decentralization, perceived environmental uncertainty, managerial performance and management accounting system information in Egyptian hospitals. International Journal of Accounting and Information Managemen, 21(4), 314-330. doi:https://doi.org/10.1108/IJAIM-02-2012-0005
Huang, S.‐H., Yu, M.‐M., Hwang, M.‐S., Wei, Y.‐S., & Chen, M.‐H. (2017). Efficiency of tax collection and tax management in Taiwan's local tax offices. Pacific Economic Review, 22(4), 620-648.
Hunt, J. B., & Wallace, J. (1997). A competency‐based approach to assessing managerial performance in the Australian context. Asia Pacific Journal of Human Resources, 35(2), 52-66. doi:https://doi.org/10.1177/103841119703500206
Ibrahim, R., Boerhannoeddin, A., & Bakare, K. K. (2017). (2017). The effect of soft skills and training methodology on employee performance. , 41(4). European Journal of Training and Development, 41(4). doi:https://doi.org/10.1108/EJTD-08-2016-0066
Ironkwe, U., & Peter, G. T. (2015). Value added tax and the financial performance of quoted agribusinesses in Nigeria. International Journal of Business and Economic Development , 3(1).
Kadim, J. R., Sabti, Y. M., Ali, G., Khdair, W. A., & Shaltag, K. H. (2021). The Impact of the Professional Competence of the Internal Auditor in Improving the Quality of Accounting: Analytical Study. South Asian Journal of Social Science and Humanities, 2(5), 85-99.
Khalil, R., Asad, M., & Khan, S. N. (2018). Management motives behind the revaluation of fixed assets for sustainability of entrepreneurial companies. International Journal of Entrepreneurship, 22(Special), 1-9.
Khan, A. A., Asad, M., Khan, G. u., Asif, M. U., & Aftab, U. (2021). Sequential mediation of innovativeness and competitive advantage between resources for business model innovation and SMEs performance. 2021 International Conference on Decision Aid Sciences and Application (DASA) (pp. 724-728). Sakheer: IEEE. doi:10.1109/DASA53625.2021.9682269
Khan, S. N., Asad, M., Fatima, A., Anjum, K., & Akhtar, K. (2020). Outsourcing internal audit services; A review. International Journal of Management, 11(8), 503-517. doi:International Journal of Management
McCarten, W. (2006). The role of organizational design in the revenue strategies of developing countries: Benchmarking with VAT performance. The Challenges of Tax Reform in A Global Economy, 413-439.
Mina Beigi, M. S. (2011). Effects of an emotional intelligence training program on service quality of bank branches. Managing Service Quality: An International Journal, 21(5). doi:https://doi.org/10.1108/09604521111159825
Mittal, S., & Mahajan, A. (2017). Vat in emerging economies: Does third party verification matter? Available at SSRN.
Mohammed, A. A., Elrehail, H., Alatailat, M. A., & Elçi, A. (2019). Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), 104-114.
Nguyen, V.-C., Hoai-Luan, P. H., Thi-Hong, T. R., Huynh, H.-T., & Nakashima, Y. (2019). Digitizing invoice and managing VAT payment using blockchain smart contract. IEEE International Conference on Blockchain and Cryptocurrency, (pp. 74-77).
Palil, M. R., Akir, M. R., & Ahmad, W. F. (2013). The perception of tax payers on tax knowledge and tax education with level of tax compliance: A study the influences of religiosity. ASEAN Journal of Economics, Management and Accounting, 1(1), 118-129.
Ratnasari, N. P., & Tjaraka, H. (2020). Individual taxpayers’ compliance in the implementation of the policies on reduction and abolition of tax administrative sanction and active tax collection. Journal of Talent Development and Excellence, 12(2S), 591-597.
Scarcella, L. (2020). E-commerce and effective VAT/GST enforcement: Can online platforms play a valuable role? Computer Law & Security Review. doi:https://doi.org/10.1016/j.clsr.2019.105371
Stankevicius, E., & Leonas, L. (2015). Hybrid approach model for prevention of tax evasion and fraud. Procedia-Social and Behavioral Sciences, 213, 383-389. doi:https://doi.org/10.1016/j.sbspro.2015.11.555
Swierenga, R. P. (1969). The tax buyer as a frontier investor type. Explorations in Economic History, 7(1-2), 257-292.
Tabash, M. I., Sheikh, U. A., & Asad, M. (2020). Market miracles: Resilience of Karachi stock exchange index against terrorism in Pakistan. Cogent Economics & Finance, 8(1), 1-23. doi:https://doi.org/10.1080/23322039.2020.1821998
Torgler, B. (2007). Tax compliance and tax morale: A theoretical and empirical analysis. Edward Elgar Publishing.
Ullah, Z., Álvarez-Otero, S., Sulaiman, M. A., Sial, M. S., Ahmad, N., Scholz, M., & Omhand, K. (2021). Achieving organizational social sustainability through electronic performance appraisal systems: The moderating influence of transformational leadership. Sustainability, 13(10), 1-14. doi:https://doi.org/10.3390/su13105611
Unegbu, A. O., & Irefin, D. (2011). Impact of VAT on economic development of emerging nations. Journal of Economics and International Finance, 3(8), 492-503.
Varney, D. S. (2006). Service transformation: A better service for citizens and businesses, a better deal for the taxpayer. The Stationery Office.
Vreeland, J. R. (2003). The IMF and economic development. Cambridge University Press.
Wallschutzky, I. G. (1984). Possible causes of tax evasion. Journal Of Economic Psychology, 5(4), 371-384. doi:https://doi.org/10.1016/0167-4870(84)90034-5
Downloads
Published
Issue
Section
How to Cite
