Saeed Awadh Bin-Nashwan

People’s perceptions of a fair tax administration system have garnered growing interest as a decisive ingredient that can install compliance behavior among taxpayers. The tax that taxpayers wish to evade is determined by their perceptions of the various robust dimensions of fairness (i.e., general fairness, preferred tax rate structure, exchange with the government, special provisions, and self-interest). Such an important matter, like tax fairness, has been overlooked in the extant literature, especially in the Middle East context, although tax administrations still suffer from low and unsatisfactory rates of compliance. This paper aims to empirically examine the influence of fairness perceptions of the income tax system on compliance behavior of taxpayers in Yemen. The study used a survey questionnaire administered to 400 individual taxpayers in Hadhramout, one of the most prosperous business regions in Yemen. Based on the PLS-SEM analysis tool, the study found that general system fairness, preferred tax rate, exchange with the government, and the extent of self-interest are significantly related to income tax compliance, while special provisions do not affect compliance decisions. The results of the study can alert the tax authority and policymakers to consider the non-pecuniary factors, other than the measures of the coercion. Establishing a fair tax system is probably one of the most successful approaches to boost compliance among taxpayers, thus yielding more tax revenue and diminishing the administrative cost for the tax authority.

Type of the article: Research Article

Abstract
In Cambodia’s emerging economy, characterized by a large informal sector and tax compliance challenges, a successful tax amnesty program could strengthen financial markets by enhancing transparency and boosting investor confidence. The purpose of this study is to investigate how tax amnesty programs can improve investor confidence, regulatory trust, and access to finance, thereby promoting capital market participation. Using a quantitative approach, the study employs Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyze data from 224 businesses. The findings reveal that participation in the tax amnesty program leads to significant improvements in financial transparency, investor confidence, regulatory trust, and access to finance. Moreover, increased investor confidence, desire to access finance, and regulatory trust were found to significantly influence companies’ intentions to list on the stock market. The study highlights the critical role of tax amnesty in preparing businesses for stock market listings and supporting capital market development, providing valuable insights for policymakers seeking to attract investment through regulatory reforms. The study contributes to the expanding literature on the importance of tax compliance and market development, offering insights into how tax forgiveness can act as a catalyst for economic growth and enhance capital market development.

Acknowledgment
This research was supported by the CamEd Business School research grant.