Is Bangladeshi Professionals’ Tax-Paying Behavior in Convergence with the Principles of Taxation?

Abstract

In an ideal world, it is expected that all people in a civilized society shall pay their fair share of imposed tax. However, reality has a different take on that. People avoid paying the right amount of tax for various reasons. Under such circumstances, it is vital to underpin, if there is a linkage between the taxpaying behavior of people and their professional backgrounds, on the basis of the major taxation principles. This study attempts to identify behavioral pattern of different professional groups in terms of taxation principles, i.e. most commonly known as cannons of equality, cannons of efficiency, cannons of certainty and cannons of convenience. Responses of 18 diverse professional groups have been evaluated and a base line survey, with a structured questionnaire. Over a response gathered from almost 600 participants, using a Likert Scale and open ended questions, the data had been further analyzed using a nonparametric technique. The responses under each of the taxation principles summed up the present divergent tax-paying behavior of the Professional class of Bangladesh. A series of steps that can be taken by the Govt., Private and Multinational Companies and common people in general are suggested to alter and improve the current divergence. If a balanced tax-paying behavior can be achieved, then in future it shall help the Govt. to earn more revenues and reinvest them in the most effective sectors.