Good Day panel list, our research is entitled Relationship of Tax Knowledge on the Tax

Compliance of Internet-based Micro-Food Businesses in the City of Manila. Let’s proceed with

the presentation.

SCOPE AND LIMITATIONS

Scope

- This study is generally concerned with determining the relationship of level and means of

acquiring tax knowledge and tax compliance

- The business subjected to this study must be a micro-enterprise with food as the main

product operating in Manila City.

- Manila City is the chosen locale because of its dense population resulting to more

businesses and because it is close to PLM where the researchers are studying.

Limitations

- The said businesses must only be operating online with no presence of a physical store.

- The respondent will be the one owner who does his own finances or taxes.

THEORETICAL FRAMEWORK

Institutional Theory

- Introduced by John Meyer and Brian Rowan in 1970s

- Management practices of business organizations such as conformity and legitimacy are

results of social pressures rather than the economic responsibility that comes along with

doing business.

Social Interaction Theory

 - Decisions made by individuals are highly influenced by the notions of the group to which

one identifies.

Relationship of the Two

- Individuals cannot be treated the same because these people may have different

motivations and preferences that affect decision making on whether to pay or not pay

taxes.

Economic Deterrence Theory

- One of the factors that may influence a taxpayer’s behavior is the knowledge of whether

the benefits of evading are high, the probability of detection is low, and penalties are

lenient.

- Tax non-compliance is likely

Attribution Theory

- Person’s behavior is influenced by external and internal factors

- If non-compliance with tax responsibility is considered by society as unacceptable

behavior, then not paying the applicable taxes would cause an individual to lose social

credibility.

- On the other hand, if non-compliance with tax responsibility is normalized in a society,

this situation is an external factor used by the individual to justify nonpayment of

applicable taxes

- Attribution theory shows that a higher educational level as an internal factor increases

the taxpayer’s understanding of the tax system, thus, knowing the benefits and

consequences thereof.

- Likewise, the same knowledgeable individual may also criticize the said tax system,

increasing the chance of non-compliance with tax responsibilities

CORRELATION WITH PAPER