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

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 complianc

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: 9 34 02 01 Academic advisor: Assoc Prof Dr NGUYEN THI LOAN

HO CHI MINH CITY – 2019

LIST OF AUTHOR’S PUBLICATION

1 ‘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

2 ‘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

3 ‘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

4 ‘Nghien cuu hanh vi gian lan thue cua cac doanh nghiep tai Viet Nam’, Banking Technology Review ISSN 1859-3682, 134, 84-92, 2017

5 ‘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

6 ‘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

7 ‘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

8 ‘Cac yeu to ve nguon luc trong tang truong kinh te: Nghien cuu tai vung kinh te trong 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

9 ‘Giai phap doi voi chinh sach tai chinh gop phan phat trien vung kinh te trong 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

non-compliance 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 do they carry out?

 What are the factors affecting tax noncompliance of enterprises in declaring corporate income tax in accordance with Vietnamese tax law? How do 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, financial and state 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

non 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

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 5 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 non-compliance 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

entity is also formed with different taxes depending on each country According to

Su Dinh Thanh and Phan Thi Mai Hoai (2010), the analysis of the flow of social income and expenditure shows that income tax is the first basic tax that the government concerns about when building the national tax system; then people must pay indirect taxes such as value-added tax, special when they use their income

to consume goods in the market Finally, property taxes levied on income which is transformed into assets such as registration tax, housing tax

2.1.3.1 Classifying based on taxpayer

- Indirect taxes: the amount of tax collected from consuming and fixed in an additional surcharge in the price of goods and services in the market

- Direct taxes: the amount of tax collected directly from individuals and institutions based on their income or taxable assets under the regulation

2.1.3.2 Classifying based on taxable objects

- Income tax put on the income generated from different sources such as salaries, wages, profits from production and business activities

- Consumption tax is a type of tax imposed on consuming goods and supply services

- Property tax is a type of tax levied on the possession, using or transferring assets

2.1.4 Overview of corporate income tax

2.1.4.1 The definition of corporate income tax

According to the Cambridge dictionary, the corporate income tax is the amount of tax that businesses must pay for their profits

According to Vietnamese dictionary, an income tax is a kind of tax imposed

on the income of individuals and institutions In the case of companies’ income, it is called corporate tax or corporate income tax

According to the general document of Le Thi Thanh Ha et al (2007), corporate income tax is also called a corporate tax This is a direct tax on enterprises' income Corporate income tax is stipulated in details in the Tax laws of each country on over the world

2.1.4.2 The basic factors of corporate income tax

- Taxpayers are enterprises having taxable income in a country

- Taxable objects: net income or taxable income

- Corporate income tax rate: shows the proportion of tax contributed to the state budget on taxable income

2.1.4.3 Corporate income tax of some countries

2.2 THEORETICAL FOUNDATION RELATED TO TAX

of taxpayers, the compliance with regulations to obtain a country's equilibrium economy McBarnett (2003) identified three types of compliance, including compliance with commitment, compliance with surrender (involuntary), creative compliance

In general, the concept of tax compliance was discussed by the researchers in the direction of research - taxpayers are willing or unwilling to comply with tax obligations (Nguyen Minh Ha et al 2012) The precise meaning of tax compliance

is defined in different ways depending on the perspective and approach of the researchers

2.2.1.2 Tax noncompliance

According to Nguyen Minh Ha et al (2012), the traditional view of tax administration was mainly based on the assumption that only when businesses were forced or affected by economic interest are they willing to comply Therefore, the concept of tax noncompliance was formed in conjunction with the tax compliance point of view

- Identification of tax compliance and non compliance based on Alabede et al (2011)

- Tax compliance triangle of BISEP (OECD 2004)

- Some concepts of tax noncompliance of enterprises from previous studies

Inheriting the previous point of view in accordance with the objectives as well as the scope of the study, the thesis concludes the concept of tax noncompliance is that enterprises do not declare their tax obligations properly related to their income, reflecting the amount of corporate income tax payable for the State budget Those are violations of Vietnamese tax law in the declaration of corporate income tax and loss of revenue for the state budget including tax fraud and tax evasion For businesses, tax noncompliance is expressed by the figures on the financial statements declared to the tax administration agency

2.2.2 The theoretical framework for researching tax noncompliance

2.2.2.1 The theory of Economic Deterrence model

The principles of economic deterrence models were first discovered in the 1960s from Becker’s study (1968), the researcher analyzed illegal behavior using

the same economic theory framework Becker (1968) proposed a narrow argument that deterrent measures such as probabilities of detecting penalties and penalties affecting compliance By the 1970s, based on “Utility Theory”, Allingham and Sandmo (1972) argued that taxpayers would find their ways to optimize the interests to make decisions to comply in tax reports in which tax evasion occurs if financial benefits are lower than financial costs Since then, the economic deterrence models have been developed with the view that deterrence has influenced compliance

From the economic deterrence models’ point of view, scientists have summarized the effectiveness of the determinants of financial costs that affect tax compliance, such as the complexity of the tax system, tax rates, probability of finding violations, income levels, and penalty structures However, there are few shreds of empirical evidence proving the predictions of the economic deterrence model are absolutely correct Jackson and Milliron (1986) in Devos (2014) argued that although the above factors have been tested, there is no conclusion about the relationship between these factors and noncompliance Hence, when the economic deterrence model and its shortcomings are considered, it is clear that the following studies need to learn more to solve the problem of tax evasion and non-compliance (Devos 2014)

2.2.2.2 The theory of Fiscal and Social Psychology Model

The Fiscal and Social Psychology Model show both the aspects of economic deterrence model and the psychological theory’s point of view The essential focus

of this approach is that individuals are not people who optimize their independent interests, but those are recognized to have attitudes and beliefs responding to social demand The research tendency of Fiscal and Social Psychology Model is to examine human factors affecting tax attitudes and behavior Factors affecting tax compliance perceived from this model's perspective have changed from social norms and individual characteristics to the perception of fairness and attitude of taxpayers (Devos 2014 )

On the one hand, taxes are regulated by the legal system in each country and tax non-compliance of enterprises is studied to be tax evasions lead to the loss of corporate income tax for the state budget According to the model of Alabede et al (2011), tax non-compliance includes the concept of tax fraud, so the theory of fraud will be mentioned for the analysis to find a framework for the thesis

2.2.2.3 The theory of fraud

The history of research has demonstrated that the theory of Fraud Triangle Model of Cressey (1953), as well as the theory of fraud from Albrecht et al (1984), are undeniable when studying fraud in the economic field

Pressure

Attitude/Rationaliza-tion Figure 2.5: The Fraud Triangle Model of Cressey (1953)

(Source: Wells 2011)

The result of Cressey (1953) suggested a model of the fraudulent triangle (Fraud Triangle) with the content that fraud, criminal activities or law violations are only carried out based on a sufficient basis of three factors - opportunity, pressure (motivation) and personality attitude or rationalization of human fraud behavior (Figure 2.5)

The theoretical model of Albrecht et al (1984) has shown that the probability of fraud is very high when the circumstances create pressure, opportunities for committing fraud together with the integrity of personal is low In contrast, there is little chance for the occurrence of fraud while circumstances do not create pressure, and there are few opportunities for committing fraud and the integrity of personnel is high According to the study, circumstances that create pressure may be related to financial difficulties; opportunities for fraudulent activity may be created by individuals or due to the weakness of the control system Like the theory of Fraud Triangle Model of Cressey (1953), this theory is applied to the empirical studies for detecting violations of law and fraud in many different areas

2.2.2.4 Discussion

On the one hand, the content of the thesis is tax noncompliance related to tax evasions leading to tax losses and tax fraud in which the theory of Fraud Triangle Model of Cressey (1953) has been widely applied to analyze factors affecting law violations in previous studies in financial and economic fields on over the world Moreover, according to Devos (2014), attitudes and opportunities are elements that have been found to have an impact on tax compliance in the process of developing research based on Fiscal and Social Psychology Model; pressure is a factor that influences behavior change from tax compliance to tax noncompliance that BISEP's compliance triangle presented (Figure 2.4) Therefore, the theory of Fraud Triangle Model of Cressey (1953) will be used as a basis for analyzing and building models

of factors affecting tax noncompliance of enterprises under Vietnamese tax law environment, which is in the sense that the probability of fraud is on the rise in correlation with the pressure and opportunities for committing fraud while the compliant attitude is low

2.2.3 The factors affecting tax noncompliance

2.2.3.1 The quality of public services

2.2.3.2 The level of corruption

2.2.3.3 The level of penalties for tax fraud

2.2.3.4 The management of tax collection and tax administration

2.2.3.5 The system of tax law and the point of view about justice

2.2.3.6 Compliance costs

2.2.4 Conclusion about the theoretical framework applied to analyze

factors affecting tax noncompliance based on the Fraud Triangle of Cressey (1953)

With the research orientation mentioned in Section 2.2.2, the theory of Fraud Triangle Model of Cressey (1953)is used as a theoretical framework to study the factors affecting tax non-compliance with the meaning analyzed following:

- Pressure (Motivation) will be analyzed in terms of tax pressure or motivation leading to tax non-compliance The higher pressure means more motivations for taxpayers to perform tax non-compliance based on the Fraud Triangle Model so that factors referring to tax pressure will have a positive correlation with tax non-compliance

- Opportunities will be analyzed in terms of gaps related to the performance

of tax obligations that create opportunities for taxpayers to perform compliances: According to the Fraud Triangle Model, the more opportunities or loopholes there are, the easier tax non-compliance will be carried out; therefore, meaningful factors that create opportunities for tax evasions will have a positive correlation with tax non-compliance

non The attitude (the rationalization of fraudulent behavior) is studied in the aspect of the spirit of taxpayers, the perception of tax payment obligations as well

as the willingness to comply with taxes According to the Fraud Triangle Model, factors reflecting the attitude of taxpayers have a positive or negative correlation with tax non-compliance The latter occurs when the positive attitude of taxpayers will limit tax non-compliance and vice versa

On the basis of the explanations of previous studies about factors affecting tax noncompliance in section 2.2.3 and the meaning of the theory of Fraud Triangle Model of Cressey (1953), the thesis has concluded that: (1) The quality of public services; (2) The level of corruption; (3) The level of penalties for tax fraud are

factors reflecting the attitude as well as the cause of low tax payment and affect the tax non-compliance behavior of enterprises Meanwhile, compliance costs are ingredients that demonstrate tax pressure, creating incentives for taxpayers to decide on carrying out tax non-compliance behavior Finally, (1) The system of tax law and the point of view about justice; (2) The management of tax collection are two components providing opportunities and loopholes for taxpayers not to fulfill their obligations

2.3 OVERVIEW OF RELATED FIELD RESEARCH STUDIES

2.3.1 The international studies

Some studies such as GIZ Sector Program Public Finance - Public finance program of the Government of Germany (2010), Abdixhiku (2013), Sapiei and colleagues (2014), Awan and Hannan (2014), Yahyapour and colleagues ( 2015) analyzed the factors affecting tax fraud given in the model as the cause of tax evasion

In addition, a number of studies have found a link between tax compliance and information on the financial statements, while giving comments on tax non-compliance of enterprises based on the information about the financial statements which reflect through the lack of the amount of declared corporate income tax such as Lisowsky (2010), Noor et al (2012), Noor et al (2013), Yusof et

non-al (2014) Mills (1996) studied tax compliance and financinon-al performance of enterprises He said that the tax authorities found that the disparities in the amount

of corporate income tax will experience a growth in proportion to between the book profits and the taxable income the business has already declared The fraud on financial statements will result in both the mismatch of tax reports and one of the manifestations of tax evasion of tax noncompliance of businesses (Frank et al 2009)

2.3.2 The national studies

Vu Huu Duc et al (2009); Le Xuan Truong and Nguyen Dinh Chien (2013) focused on violations, tax fraud and tax evasion of enterprises in which the former concluded that the indicators on financial statements are related to the corporate income tax compliance expressed by the difference between the self-declared corporate income tax and the inspection results of tax office The study of Le Xuan Truong and Nguyen Dinh Chien in 2013 partly illustrated the specific violations of tax frauds of enterprises so that the tax authorities have had some resolutions to reduce this situation

Besides, a number of factors have an impact on the tax compliance of enterprises in the study of Nguyen Minh Ha and Nguyen Hoang Quan (2012); Bui Ngoc Toan (2017) suggested that as a research model is being built, it is necessary

to regard the variables affecting taxpayers' behaviors more fully in addition to the financial elements The methods applied in previous studies include analysis, synthesis and survey techniques Some studies have used quantitative methods such

as multiple regression, exploratory factor analysis (EFA), and Logit regression to accomplish the research objectives of each topic

2.3.3 Discussion about previous studies

2.3.3.1 The methodology of previous studies

Some studies only use a single method such as interview, survey or theoretical analysis method, descriptive statistics to summarize the research content

Some other studies combine several methods including quantitative research

By OLS regression techniques, Tobit regression, and Logistic regression, previous studies have conducted the hypothesis testing to give a conclusion regarding the factors affecting tax non-compliance

2.3.3.2 The practical research model of previous studies

Apart from some studies that only analyze the situation, statistical analysis without building research models, there are many approaches to previous studies in the world constructing experimental research models

The majority of studies were conducted on the basis of economic deterrence model theory and inherited the previous research model Through the incomplete synthesis process of the author, the thesis realized that the variables included in the research model were associated with the causes affecting tax evasion and non-tax compliance

2.3.3.3 Research results

Since the thesis does not mention tax exemption and reduction, it can be argued that the tax noncompliance is reflected in the false declaration of corporate income tax payable amount proposing by the previous authors Most of these are violations of tax laws including (1) conceal revenue; (2) declare increased costs to reduce tax obligations

Based on the results of previous studies and a framework for analyzing the factors that affect tax non-compliance according to the theory of Fraud Triangle Model of Cressey (1953), the thesis formed a framework to study the factors influencing corporate tax noncompliance reflected by causing loss of corporate income tax in Figure 2.6 below This will be the basis for exploiting and analyzing actual data with the purpose of building an experimental research model in Chapter 3: