Các yếu tố ảnh hưởng đến không tuân thủ thuế của doanh nghiệp tt tiếng anh

MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN VIET HONG ANH FACTORS AFFECTING TAX NONCOMPLIANCE OF ENTERPRISES SUMMARY OF Ph.D THESIS HO CHI MINH CITY – 2019 MINISTRY OF EDUCATION AND TRAINING STATE BANK OF VIETNAM BANKING UNIVERSITY OF HO CHI MINH CITY NGUYEN VIET HONG ANH FACTORS AFFECTING TAX NONCOMPLIANCE OF ENTERPRISES SUMMARY OF Ph.D THESIS Major: Finance and Banking Code: 34 02 01 Academic advisor: Assoc Prof Dr NGUYEN THI LOAN HO CHI MINH CITY – 2019 LIST OF AUTHOR’S PUBLICATION ‘Anh huong cua thue den cau truc von cua cac doanh nghiep Viet Nam’, Banking Science & Training Review ISSN 1859-011X, 168,34-42, 2016 ‘Anh huong cua thay doi moi truong phap ly ve ke toan – thue va cac luu y doi voi doanh nghiep tai Viet Nam, Journal of Development and Integration ISSN 1859-428X, 29(39), 53-61, 2016 ‘The effects of tax on corporate capital structure related Vietnam’s participation in TPP’,Advanced Technology & sustainable development (ICATSD2016) ISBN: 978-604-920-040-3, (08/2016), 1486-1493, 2016 ‘Nghien cuu hanh vi gian lan thue cua cac doanh nghiep tai Viet Nam’, Banking Technology Review ISSN 1859-3682, 134, 84-92, 2017 ‘Detecting Corporate Income Tax Non-compliance from Financial Statements: A case study of Vietnam’, Studies in Computational Intelligence, Econometrics for Financial Applications, Springer Verlag, Cham, Switzerland (Scopus) DOI: 10.1007/978-3-319-73150-6_52, 760, 656-672, 2018 ‘Application of Statistical Methods for Tax Inspection of Enterprises: A case study in Vietnam’, Studies in Computational Intelligence, Econometrics for Financial Applications, Springer Verlag, Cham, Switzerland (Scopus) DOI: 10.1007/978-3-319-73150-6_51, 760, 648-655, 2018 ‘Phat hien sai sot va gian lan thong tin tren bao cao tai chinh cua doanh nghiep: Nghien cuu tai Viet Nam’, Banking Review ISSN – 0866 – 7462, 14, 34-41, 2018 ‘Cac yeu to ve nguon luc tang truong kinh te: Nghien cuu tai vung kinh te diem phia Nam’, National scientific conference on “Mechanisms and policies to generate capital resources for the Southern key economic region” Lao dong Publisher, 61-70, 2018 ‘Giai phap doi voi chinh sach tai chinh gop phan phat trien vung kinh te diem phia Nam’, National scientific conference on “Mechanisms and policies to generate capital resources for the Southern key economic region” Lao dong Publisher, 217-223, 2018 10 Scientific research topic: “Phan tich gian lan thue tai doanh nghiep Viet Nam” – Code: CT – 1709-66 – Year 2017 – Banking University of Ho Chi Minh City, Member CHAPTER 1: INTRODUCTION 1.1 REASONS FOR CHOOSING THE RESEARCH TOPIC 1.1.1 National and international research backgrounds For a long time, taxes have known as the form of in-kind revenues; and overtime, they developed into the form of currency gradually These are compulsory and limited contributions to the government (Phan Hien Minh et al.2001) Since taxes were born, taxpayers’ obligations were also formed According to Noor et al (2013), the government has been becoming more and more concerned about tax noncompliance and tax evasion because these activities reduced the efforts of increasing the national budget revenue Tax noncompliance occurs when taxpayers fail to comply with their tax obligations as a result of reducing the tax payable amount for the State budget (Franzoni 1998; Lewis et al 2009) According to Halon et al (2005), studying tax noncompliance is a very important issue affecting the operation of the tax system in each country Like other countries, the government of Vietnam always pays attention to the tax administration of the country, especially the tax obligations of businesses According to the Ministry of Finance (2016), throughout several periods: from 2001 to 2005; from 2006 to 2010 and from 2011 to 2015, the proportion of tax revenue presented that corporate income tax was always the major revenue source strongly concerned by our government Under current regulations, enterprises are obliged to declare and pay the annual corporate income tax to the tax authorities However, according to the statistic of the Ministry of Finance, the tax inspection results showed that the current situation of Vietnamese enterprises’ tax noncompliance is currently a crucial issue of the government (Kien and Nga 2017) Although enterprises are obliged to declare to pay taxes themselves, if there were no tax inspections and tax examinations, the loss of national budget revenue would be increasing The number of tax arrears and the number of fraud enterprises has increased during many years, proving that tax noncompliance behaviors of enterprises have been becoming more and more popular In the field of Vietnamese tax administration, the government has to find out effective solutions in order to solve this problem 1.1.2 Overview of related research and scientific gaps During several decades, the research history had many published scientific studies on tax noncompliance, many of which had different approaches Studies of Yalama and Gumus (2013); Abdixhiku (2013); Awan and Hanna (2014); Yahyapour et al (2015) used the survey method by questionnaires to exploit the data from taxpayers Tax noncompliance is measured by the ratio of annual tax payments to total income or self-assessment of tax compliance attitude by the respondents Studies of Mills (1996); Joulfaian and Rider (1998); Hanlon et al (2005); Zainal Abidin et al (2010); Lisowsky (2010); Noor et al (2012); Noor et al (2013); Yusof et al (2014) presented an empirical research model about the factors affecting tax noncompliance of enterprises, while tax noncompliance was realized as the false declaration of taxable income or factors of taxed income bases such as revenue and expenses of businesses By simulation analysis method based on the relationship between the information on financial statements and the data of corporate income tax declaration, Vu Huu Duc et al (2009) demonstrated a number of factors that have effects on the cause of tax gaps during the enterprises’ tax declaration in Vietnam Phan My Hanh (2003); GIZ Sector Program Finance (2010); Le Xuan Truong and Nguyen Dinh Chien (2013) synthesized and analyzed the factors associating with the causes of tax fraud, mentioned tax evasion leading to budget losses and suggested the measures to reduce tax noncompliance of enterprises In the view of previous researchers, the studies on tax noncompliance showed that although there were many approaches, most of the researchers in the world exploited tax noncompliance related to hiding the income tax and the amount of tax payable However, the thesis realized that there were still some certain research holes in the previous studies on tax noncompliance of enterprises Firstly, some studies in the world concluded the factors affecting tax noncompliance on the database formed by the survey method, which makes the results may be general and the measuring of factors not be reliable These studies did not mention the information reflecting on the financial statements, which was a legal basis to assess the tax obligations of businesses Secondly, some of the researches from foreign authors have neither reflected the situation of tax law violations nor proposed solutions to reduce the non-compliance with the quantitative results They only mentioned some conclusions from the impact of the factors in the quantitative regression results Thirdly, most of the studies in Vietnam about tax noncompliance of enterprises were approached from the actual happening of tax law violations in combination with the theoretical analysis Some of them have built the quantitative model with primary data sources collected from taxpayers’ surveys, but these studies have not yet carried out the regression and examination in the secondary data set such as the data of tax declaration or the information from financial statements of enterprises In the theoretical point of view, the theoretical background of tax noncompliance and tax fraud has been still controversial when studying the factors affecting tax fraud or tax noncompliance based on the economic deterrence models as well as fiscal and social psychology models (Devos 2014) Therefore, previous authors over the world have also affirmed the need of the combination between factors affecting taxpayers’ compliance and their behavior levels to study tax compliance issue and the data on financial statements must be also analyzed when studying the factors affecting tax noncompliance of enterprises From the research background as well as the gaps in previous studies, the author has chosen the thesis topic: “Factors affecting tax noncompliance of enterprises” The thesis will research tax noncompliance based on income tax obligations, consistent with the majority of research points of view over the world By combining many researching methods, including the exploitation of information, practical experience from taxpayers, tax authorities and quantitative research models, the thesis will determine the influencing of factors on tax noncompliance of companies which was reflected by illegal activities under the Vietnamese tax law’ s circumstances The research topic not only concludes the affecting of factors but also analyzes the current situation of enterprises’ tax noncompliance and suggests some solutions for this problem 1.2 OBJECTIVES AND RESEARCH QUESTIONS 1.2.1 Objectives of the study There are three specific objectives of the study, included:  Identify violations of Vietnamese tax laws by declaring corporate income tax obligations  Identify factors affecting tax noncompliance of enterprises in declaring corporate income tax in accordance with Vietnamese tax law and mention some limitations of tax administration in Viet Nam  Propose solutions to contribute to reducing the tax noncompliance of enterprises in declaring corporate income tax obligations under the legal framework of Vietnamese tax law 1.2.2 Research questions of the study  How many violation activities in declaring corporate income tax under the Vietnamese tax law? How they carry out?  What are the factors affecting tax noncompliance of enterprises in declaring corporate income tax in accordance with Vietnamese tax law? How these factors tend to affect corporate income tax noncompliance? What are the limitations of the tax administration for enterprises under the Vietnamese tax law?  From the limitations of tax administration and the relationship between the factors affecting corporate tax noncompliance, what are the solutions to contribute to reducing the tax noncompliance of enterprises in declaring corporate income tax obligations under the legal framework of Vietnamese tax law? 1.3 SUBJECTS AND RESEARCH SCOPES 1.3.1 Subjects of the study The thesis researched the factors affecting tax noncompliance of enterprises Tax noncompliance was reflected by some illegal activities in declaring information on corporate income tax obligations under the Vietnamese tax law’s conditions These tax evasions have been concluded by the tax authorities through the process of tax inspections and tax examinations every year 1.3.2 Research scopes Research content: • The thesis limited the research content in the corporate income tax obligations which have been regulated in the Law on enterprise income tax of Vietnam and the guiding legal documents • Enterprises studied in the thesis were domestic companies, non-financial and nonstate enterprises established under the Vietnamese law on enterprises The thesis did not mention foreign-invested enterprises as well as the enterprises in the field of real estate business and securities transferring The author did not mention the content related to corporate income tax exemption or reduction - Research space: The scope of the research included the enterprises in Ho Chi Minh City - Research period: To ensure the update of the research data, as well as the changes in tax policy in Vietnam, the period for researching of this thesis, was from 2013 to 2017 1.4 METHODOLOGY AND RESEARCH DATA 1.4.1 Methodology research A systematic approach with descriptive, analytical, synthesized, and comparative methods were used throughout the content of the thesis In order to identify the forms of Vietnamese tax law violations on enterprises about income tax declaration, the thesis used the method of synthesizing theoretical basis combined with the results of group discussions among tax managing experts from tax authorities and discussing with the business representatives who have been inspected and examined taxes The research methods were combined to exploit indepth information from the reality of violations and experiences of tax professionals in Vietnam, in accordance with some previous research using, such as Yalama and Gumus (2013); Yahyapour and colleagues (2015) The combination of the actual data analysis method with the group discussion tool and the mentioned discussion above with the Probit regression method on the data set includes 935 observations (5 years x 187 enterprises, which have been inspected for tax audits for years from 2013 to 2017) determined the factors affecting tax non-compliance of enterprises in Vietnam’s legal environment Quantitative regression methods have been implemented in many previous studies such as Lisowsky (2010); Noor et al (2012); Noor et al (2013); Yusof et al (2014) 1.4.2 Research data The statistical data reflecting the situation presented in the thesis is taken from the report of the Ministry of Finance and reports of the Ho Chi Minh City Tax Department during the period from 2013 to 2017 The process of exploiting data from group discussion and interviewing was carried out in Ho Chi Minh City The data set used in the research model was the balance sheet data of 187 enterprises, randomly selected among the enterprises that have had the results of tax inspection from tax authorities during the study period from 2013 to 2017 The data source was collected from the Vietnamese tax information system about the enterprises’ obligations, such as tax reports, financial statements and the annual tax examination results of tax authorities 1.5 NEW FINDINGS AND CONTRIBUTIONS OF THE THESIS 1.5.1 Theoretically The thesis has approached a research method that has not been implemented before in Vietnam, which was a combination of primary and secondary data to confirm the hypothesis about the impact of factors on tax non-compliance of the enterprise (the obligation to declare and pay CIT) (1) Primary data was collected through interviews and direct discussions with tax professionals and representatives of enterprises that have been audited by the tax authorities to verify the annual CIT declaration data With the information collected from two objects: one side was those who directly manage and examine the declared data of enterprises about tax obligations, one side was ones who performed tax obligations on the basis of legal documents and tax regulations of the State The updated information collected with this method to exploit the situation of factors affecting the false declaration of enterprises about CIT, reflecting some of breaking tax laws activities of enterprises, that was the basis for comparing previous research results in the world (2) With secondary data, the indicators of tax declaration on financial statements and inspection results about the compliance with tax laws of enterprises, the results of regressing model of factors affecting tax non-compliance of enterprises had a legal basis to assess the tax compliance of the enterprise because the tax agency determined the tax compliance of companies based on the information of financial statements The results of the study provided empirical evidences for The Fraud Triangle theory of Cressey (1953) in the field of tax noncompliance Specifically, the factors affecting tax non-compliance were derived from causes of pressure, opportunity and attitude that lead to tax violations 1.5.2 Practically Firstly, the thesis has a new point when researching in the scope of tax noncompliance of Vietnamese enterprises related to corporate income tax with updated information through the direct discussions with tax officials as well as business representatives; thereby reflecting the practical research content Secondly, by the Probit regression method on the data set to declare the corporate income tax obligations of enterprises that have been inspected by the tax authorities and have concluded whether the amount of paying corporate income tax must be remitted into the budget, the results show that the experimental research model has the accuracy classification index of over 70%.The result of the proposed model can be applied to classify and assess the tax noncompliance of enterprises through annual CIT declaration data Since then, the tax authorities have initial evaluations of tax compliance of enterprises throughout a declared data scientifically Thirdly, with the development of many different industries nowadays, the research results of the thesis have provided evidence that enterprises in different business sectors have different levels of tax compliance This was a contribution of the thesis that helps tax authorities realize an important role of business field in tax administration of enterprises It is necessary that the tax officials have to timely update the information of the business field in the database of enterprises in order to have an accurate classification of enterprises’ tax compliance level Fourthly, the result of the thesis showed that most of the influent factors have been measured by the indicators of financial statements which are the legal basis for declaring the amount of tax payable of companies Based on this, the thesis not only suggested some solutions in tax administration for enterprises but also proposed several recommendations about current Vietnamese Corporate Income Tax law in order to reduce tax noncompliance of enterprises 1.6 STRUCTURE OF THE THESIS To achieve the above objectives, the thesis was structured into five chapters as the followings: Chapter 1: Introduction Chapter 2: Theoretical foundation of enterprises’ tax noncompliance Chapter 3: Methodology and research model Chapter 4: Research results of the factors affecting tax noncompliance of enterprises Chapter 5: Conclusions and suggesting solutions for reducing tax noncompliance of enterprises CHAPTER 2: THEORETICAL FOUNDATION OF ENTERPRISES’ TAX NONCOMPLIANCE 2.1 OVERVIEW OF TAX AND CORPORATE INCOME TAX 2.1.1 The definition of tax and the nature of tax 2.1.1.1 The definition of tax According to OECD (1996), the term "tax" is a mandatory, limited contribution to the government The taxes will be refunded accordingly by the benefits brought by the government in a special form Tax does not include fines relating to tax violations and loans that are required to be paid to the government 2.1.1.2 The nature of tax Phan Hien Minh et al (2001) wrote that the tax has existed for a long time since the State slavery, creating social conflicts; so the first nature of taxation is the enforcement of financial resources from the people The second characteristic of taxation is that there is no compatibility between paying taxes and the benefits received from tax payments (Phan Hien Minh et al 2001) Therefore, tax is a category related to the State, the law and the enforcement There is no compatibility between the tax payable and the benefits, so the performance of the tax obligation is often less voluntary 2.1.2 The role of tax The tax has two functions which are the distribution as well as redistribution, and the regulating tool of the economy (Phan Hien Minh et al 2001; Le Quang Cuong and Nguyen Kim Quyen 2015) Two functions of tax show that tax plays a very important role in the economy because every change of tax law has a great influence on the activities of entities in the business process Therefore, the governments of all countries always pay attention to tax revenue and use the system of tax law as a tool to regulate the macro economy 2.1.3 The classification of tax According to Su Dinh Thanh and Bui Thi Mai Hoai (2010), classifying taxes is necessary to consider the impact of taxes in the flow of income and consumption in society In the economic point of view, income can be understood on the basis of the theory of assets and asset growth "According to the theory of increasing net assets, income is the sum of the values of benefits enjoying in terms of consumption and added value in the total ownership of a subject during a definite period of time." (Su Dinh Thanh and Bui Thi Mai Hoai 2010, page 294) In terms of tax collection, income is clearly defined in tax laws in each country which is created from working, business activities or a certain relationship in society Therefore, each entity in the economy, when generating income, must pay tax on their income to the state budget Since then, the tax liability of each 18 Total debt/ Total assets Inventory/ Total assets Accounts receivable / sales 10 Size of business 11 Working capital/Total assets 13 The amount of penalties related to tax fraud/ tax payable amounts Enterprises declare losses in the previous year 14 Accumulated depreciation expense/Total assets 15 Feeling about public service 16 The financial situation of the enterprise 17 Legal status 18 Belief in the government 12 3.3 The factor of this study was confirmed from previous research The factor of this study was confirmed from previous research The factor of this study was confirmed from previous research The factor of this study was confirmed from previous research The factor of this study was confirmed from previous research The factor of this study was confirmed from previous research A new factor has not been confirmed from previous research A new factor has not been confirmed from previous research The factor of this study was not included in the research model The factor of this study was not included in the research model The factor of this study was not included in the research model The factor of this study was not included in the research model (Source: The author synthesized and compared) QUANTITATIVE RESEARCH 3.3.1 The model of factors affecting enterprises’ tax noncompliance 3.3.1.1 The proposed research model Based on the above research results, the thesis proposed an empirical research model consisting of 11 factors affecting the tax non-compliance of enterprises as follows (Figure 3.7): 19 Figure 3.7: The proposed research model Corporate income tax payable/Earning before tax Revenue/Total assets Working capital/Total assets Loss in previous year TAX NONCOMPLIANCE Total debt/ Total assets Accumulated depreciation expense/Total assets Inventory/ Total assets Size of business Accounts receivable / sales The amount of penalties related to tax fraud/ tax payable amounts Business field (Source: The author synthesized and proposed) 11 factors in the proposed research model are consistent with previous studies such as Noor et al (2012); Yusoft et al (2014) While the research model of Noor et al (2012) contained most of the financial factors to examine the impact on tax non-compliance of enterprises, Yusoft et al (2014) proposed a variable presenting industry to classify and assess how the differences of enterprises in various business fields influence the tax noncompliance 3.3.1.2 The methodology Inheriting Lisowsky (2010), the thesis built a model of factors affecting tax non-compliance of enterprises with a dependent variable is a binary variable to assess the ability of tax non-compliance According to Scott (1997), OLS regression is not appropriate because the hypothesis will be violated if the dependent variable of the model is a binary variable Similar to the Logit model used in Lisowsky (2010), the thesis applied Probit regression model to perform testing of factors affecting tax non-compliance of enterprises as follows: = Pr ( = 1| ) = Pr ( ∗ ≤ ) = Pr ( ≤ ) = F( ) In particular, represents the probability of a tax non-compliance observation (tax fraud leading to the difference of corporate income tax obligations) and F (BX) is called Probit functions 20 Therefore, the thesis will present the research model in the form of Probit probability regression equation as follows: Y= + + (1) Y: Binary variable, get a value of or Y = 1: Observation is defined as non-tax compliance; Y = 0: Observation is defined as tax compliance; Xi: Independent variables; : Coefficient of independent variables; : Random error of the model In theory, the difference between Logit and Probit is mainly concentrated on the distribution function of the errors While the Logit model assumes standard Logit distribution errors, the errors of the Probit model are assumed to have a normal distribution In fact, the choice of models between Logit and Probit models depends on the theoretical framework or the author's perspective The estimated results of the two models have almost no difference in the variance of the explanatory variable coefficients (Scott 1997) 3.3.2 Explaining variables in the model and developing hypotheses Figure 3.5: Summary of variables in the proposed research model Code Name of variables Symbol Tax noncomplianc e nct Working capital/ Total assets Revenue / Total assets The author of the previous Formula study mentioned Dependent variable Lisowsky Binary variable: has a (2010); Nguyen value of if it is a non-tax Minh Ha and compliant form; otherwise, Nguyen Hoang it has a value of Quan (2012) Independent variable wc Spathis (2002); Noor et al (2012); Yusof et al (2014) (Money + Short-term investments + Short-term receivables)/ Total assets sale Vu Huu Duc et al (2009); Noor vàcộngsự (Total Revenue / Total Assets) Hypothesis of previous studies Companies with lower working capital ratios / total assets might be encouraged to non-compliant (Noor et al 2012; Yusof et al 2014) The higher the revenue the company is, the more likely 21 (2012) Total debt / Total assets debt Persons (1995); Vu Huu Duc et al (2009); Lisowsky (2010); Noor et al (2012); Yusof et al.(2014) Total Debt / Total Assets loss Lou and Wang (2009); Duong (2011) 0: noloss in the previous year; 1: There are losses in the previous year inv Vu Huu Duc et al (2009); Noor et al (2012) Inventory value (minus reserve expenses) / Total assets Accounts receivable / sales ar Vu Huu Duc et al (2009); Noor et al (2012) Accumulat ed depreciatio n / Total assets depr Corporate income tax payable/Ea rning before tax Loss last year Inventory / Total assets etr Accounts Receivable / Revenue Vu Huu Duc et Accumulated depreciation al (2009), Mills / Total assets (1996) Joulfaian (2000); Zainal Abidinet al (2010); Noor et al (2012); Yusof et al (2014) Declaration of CIT payable / profit before tax they might be not to comply with the tax (Noor et al 2012) Companies with high financial leverage might be more likely to fail to comply with the tax (Noor et al 2012) The loss situation of the company might create opportunities for corporate income tax non-compliance (Duong 2011; Lou and Wang 2009) The company has the higher the inventory, the greater noncompliant of the tax might happen (Noor et al 2012) The higher the receivable rate, the greater non-compliant of the tax might happen (Noor et al 2012) Companies with higher depreciation rates might have more impact on tax compliance (Mills1996) If the companies have a high CIT rate, they might be compliant tax payers (Yusof et al 2014) 22 10 Size of business 11 The number of penalties related to tax fraud/ tax payable amounts in the period 12 Business field size pen field Hanlon et al (2005); Zainal Abidinet al (2010); Lisowsky (2010); Noor et al (2013); Nguyen Minh Ha and Nguyen Hoang Quan (2012); Yusof et al (2014) Log (Total assets) The amount of penalties Allingham related to tax fraud/tax andSandmo (1972), Yusof et payable amounts in the period al (2014) Rice (1992); Nguyen Thi Le Thuy (2009); Zainal Abidinet al (2010); Nguyen Minh Ha and Nguyen Hoang Quan (2012); Noor et al (2013); Yusof et al (2014); Bui Ngoc Toan (2017) Dummy variable categorizes sectors: construction; catering and accommodation services; Other businesses (basic field) There might be a negative correlation between business size and tax noncompliance (Yusof et al 2014) There might be a positive relationship between penalties and tax non-compliance (Yusof et al 2014) Business field might have a relationship with tax noncompliance of enterprises (Yusof et al 2014) (Source: The author synthesized) 23 Figure 3.6: Research hypothesis and expectation of independent variable sign Code Name of independent variable Working capital/ Total assets Revenue / Total assets Symbol wc sale Total debt / Total assets debt Loss last year loss Inventory / Total assets inv Accounts receivable / sales ar Accumulated depreciation / Total assets depr Corporate income tax payable/Earning before tax Size of business etr size Hypothesis H1: Working Capital / Total Assets has a negative relationship with the probability of corporate income tax non-compliance H2: Revenue / Total assets has a positive relationship with the probability of corporate income tax non-compliance H3: Total debt / Total assets has a positive relationship with the probability of corporate income tax non-compliance H4: Loss last year has a positive relationship with the probability of corporate income tax noncompliance H5: Inventory / Total assets has a positive relationship with the probability of corporate income tax non-compliance H6: Accounts receivable / sales has a positive relationship with the probability of corporate income tax non-compliance H7: Accumulated depreciation / Total assets has a positive relationship with the probability of corporate income tax noncompliance H8: Corporate income tax payable/Earning before tax has a negative relationship with the probability of corporate income tax non-compliance H9: Size of business has a negative relationship with the probability of Expectation (-) (+) (+) (+) (+) (+) (+) (-) (-) 24 10 The amount of penalties related to tax fraud/tax payable amounts in the period pen 11 Business field field corporate income tax noncompliance H10: The amount of penalties related to tax fraud/tax payable amounts in the period has a (-) negative relationship with the probability of corporate income tax non-compliance H11: Business field has a relationship with the probability of corporate income tax noncompliance (Source: The author synthesized and proposed) Note: (+) presented a positive relationship with dependent variable; (-) presented a negative relationship with dependent variable 3.3.3 Describe research data The data is taken from the system of the tax administration agency, including all the financial statements of the enterprise as a basis for tax calculation and the results of tax inspection of tax authorities for businesses The sample consisted of 187 enterprises selected by simple random method Those are businesses in Ho Chi Minh City inspected by the tax authorities during the period from 2013 to 2017 Equation (1) is rewritten as follows: + nctit = + etrit + it + it+ saleit + debtit + lossit + penit-1+ fieldit + uit (1’) invit + arit + deprit In particular, symbol i represents the enterprise (from to 187) of Ho Chi Minh City, t represents the period (from 2013 to 2017) 3.3.4 The steps of analyzing data The process of analyzing data consisted the following steps: Step 1: Applying describe statistics, correlation analysis on data set as well as Spearman test and univariate regression analysis are used to check the relationship between variables Step 2: Carrying out Probit regression method Step 3:Testing the appropriateness of regression models and regression coefficients Step 4: Testing the defects in Probit regression model to get the most suitable model Step 5: Evaluating the effectiveness of the research model 25 CONCLUSION OF CHAPTER Chapter has developed the research process of the thesis and presented steps to build experimental research model The results of chapter helped the thesis propose a research model with 11 factors affecting the tax non-compliance of enterprises under Vietnamese tax law environment 26 CHAPTER 4: RESEARCH RESULTS OF THE FACTORS AFFECTING TAX NONCOMPLIANCE OF ENTERPRISES 4.1 CURRENT SITUATION OF ENTERPRISES’ TAX NONCOMPLIANCE 4.1.1 Current state of budget collection Figure 4.1: Fluctuations in the proportion of revenue in the State budget from domestic enterprises in the period from 2013 to 2017 Unit: % 90,00% 80,00% 79,08% 75,61% 70,00% 74,85% 66,03% 68,86% 60,00% 50,00% 51,55% 40,00% 53,00% 51,10% 53,24% 37,43% Proportion of tax revenues from domestic enterprises /Total domestic revenue (%) 30,00% Proportion of tax revenues from domestic enterprises/ Total budget revenue (%) 20,00% 10,00% 0,00% Năm 2013 Năm 2014 Năm 2015 Năm 2016 Năm 2017 (Source: Synthesized from www.mof.gov.vn) 4.1.2 Status of corporate tax non-compliance through tax inspection and examination results Table 4.4: Results oftax fraud through tax inspections and examinations statisticsby the Ho Chi Minh City Tax Department Unit: million dong Violations 2013 2014 2015 2016 2017 Invoice fraud 42.557 45.884 48.541 50.448 58.403 Declared to increase input costs 32.975 25.003 50.664 54.458 61.560 Hide sales 7.816 4.126 6.479 24.682 26.917 Violations of accounting 1.296 1.550 1.865 2.024 2.197 (Source: Reports of Ho Chi Minh City Tax Department) 27 4.1.3 Current situation of tax administration for enterprises under the legal environment of Vietnam 4.2 THE FACTORS AFFECTING TAX NONCOMPLIANCE ENTERPRISES 4.2.1 The results of quantitative research 4.2.1.1 Descriptive statistics 4.2.1.2 Correlation test 4.2.1.3 Probit regression results Table 4.7: Probit regression results nct wc -0,763 (0,145)*** sale 0,061 (0,026)** debt 0,501 (0,168)*** loss 0,570 (0,119)*** ar -0,726 (0,377)* size -0,262 (0,082)*** pen -0,926 (0,225)*** 2bn.field 0,601 (0,124)*** 3.field 0,385 (0,104)*** _cons 2,192 (0,619)*** OF 28 Observations 935 * p