Escoton, Patricea

Gesulga, Reenha Jen

Pastolero, Chare Grace

Based on the given agenda, the researchers have laid their interest on making a
research based on tax, specifically tax compliance of SMEs in Davao City. This is due to
the current situation of our economy where businesses are declining because of the
extended quarantines. This is to navigate the level of compliance and the decision
making of SME owners in Davao City in relation to the country’s tax system nowadays.
They have gathered theoretical knowledge from various sources and studies to support
their titles.

From Optimal Tax Theory to Tax Policy : Retrospective and Prospective Views

According to Boadway (2012), one of the characterizing features of optimal tax theory is
that it addresses how to raise revenues in (distorted) economy. Economies who face
different difficulties vary as to what implementation or policy is needed. This book
examines theories in different perspectives, and on how to address it as to what best
policy is needed.

Supported by Mankiw, Weinzierl, and Yagan (2009), that implying a social welfare
function that is linear in individual utilities is not applicable to everyone. The problem is
that it is assumed that everyone in society has the same preferences over, say,
consumption and leisure.

INTER-AMERICAN DEVELOPMENT BANK’S RECOMMENDATIONS AND BEST

PRACTICES ON TAXATION OF SMEs IN LATIN AMERICA

According to the Inter-American Development Bank (2009), the negative impacts of

having an informal economy are: the lack of awareness towards the need to contribute
to finance goods, the prevention of the generation of necessary resources to lay the
foundations for social protection mechanisms, and the deprivation of tax systems
and enforcement authorities of their legitimacy.

Their study also highlighted that voluntary compliance of the taxpayers should be
facilitated and sales volume should not be used as a key parameter.
DETERMINANTS OF TAX COMPLIANCE BY SMALL AND MEDIUM ENTERPRISES
IN ZIMBABWE

According to Maseko (2013), the motivation for tax compliance are tax clearance
certification, to avoid tax penalties, business formalization, and social acceptance.
Among these four indicators, tax clearance certification, and the avoidance of tax
penalties seems to be prevalent. The researchers are also interested if the same factors
apply in terms of tax compliance in the SMEs in Davao City. The researchers also want
to determine the effectiveness of such factors.

The following titles that the researchers came up with based on the theories presented:

The Impact of Tax Compliance of SMEs in Davao City

The Tax Compliance and Its Factors on SMEs in Davao City
The Other Percentage Tax and Tax Compliance of SME’s in Davao City
The Effect of Tax Compliance on the SMEs in Davao City
The Effect of Other Percentage Taxes on The Revenue of SMEs in Davao City
The Tax Compliance and Revenue of SMEs in Davao City
The Effect of Tax Compliance on The Revenue of SMEs in Davao City
REFERENCES:

Boadway, R. (2012). From Optimal Tax Theory to Tax Policy : Retrospective and
Prospective Views, MIT Press. Available at:
https://www.proquest.com/docview/2131732753/bookReader?accountid=31259
[Accessed August 28, 2021].

Mankiw, N., Weinzierl, M., and Yagan, D. (2009). Optimal taxation in theory and
practice. Journal of Economic Perspectives. Available at:
https://dash.harvard.edu/bitstream/handle/1/4263739/Mankiw_OptimalTaxationTheory.p
df [Accessed 28 Aug. 2021].

Inter-American Development Bank (2009). Recommendations and Best Practices on

Taxation of SMEs in Latin America | Publications. [online] publications.iadb.org.
Available at:
https://publications.iadb.org/publications/english/document/Recommendations-and-Best
-Practices-on-Taxation-of-SMEs-in-Latin-America.pdf [Accessed 27 Aug. 2021].

Maseko, N. (2013). Determinants of Tax Compliance in Small and Medium Enterprises

in Zimbabwe. SSRN Electronic Journal, [online] p. Available at:
https://www.researchgate.net/publication/256054331_Determinants_of_Tax_Complianc
e_in_Small_and_Medium_Enterprises_in_Zimbabwe [Accessed 27 Aug. 2021].