Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector
Environmental regulation is the responsibility of individuals, corporations, and other entities to prevent environmental damage or improve the tarnished environment. The Environmental law of every country works to protect the natural resources of land, water, air, and soil. There are research evide...
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| Format: | Article |
| Language: | English |
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EconJournals
2023-09-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | http://econjournals.com/index.php/ijeep/article/view/14736 |
| _version_ | 1827791952508092416 |
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| author | Abba Ya'u Mahadi Hasan Miraz Natrah Saad Hussaini Bala Dhanuskodi Rangasamy Oladokun Nafi’u Olaniyi Umar Aliyu Mustapha |
| author_facet | Abba Ya'u Mahadi Hasan Miraz Natrah Saad Hussaini Bala Dhanuskodi Rangasamy Oladokun Nafi’u Olaniyi Umar Aliyu Mustapha |
| author_sort | Abba Ya'u |
| collection | DOAJ |
| description |
Environmental regulation is the responsibility of individuals, corporations, and other entities to prevent environmental damage or improve the tarnished environment. The Environmental law of every country works to protect the natural resources of land, water, air, and soil. There are research evidence that environmental regulation influences Corporate taxes. Economic deterrence theory acted as deterrent to threats of punishment for unwanted or illegal behavior. The fundamental concept of the theory is deterring the taxpayers into compliance by the risk of audit, penalty, etc. The objective of the study is to analyze the impact of economic deterrence theory and environmental regulation on corporate tax evasion, particularly petroleum profit taxes in Nigeria. The components of Economic deterrence theory (tax agents, tax complexity, tax knowledge) and environmental regulations are the independent variables and corporate tax evasion particularly PPT is the dependent variable of the study. It is quantitative research based on primary data which was collected from the oil and gas companies’ representatives. Structural Equation Modelling techniques were applied, and the outcome of the research is a positive and significant relationship between tax agents, tax complexity, tax knowledge, and environmental regulations on corporate tax evasion. The result further shows a positive but non-significant relationship between tax audits and perceived petroleum profit tax evasion. The study draws the attention of policymakers to formulate environmental regulations that are more robust, simple, and flexible, to reduce adverse effects of environmental damage on the economic growth and development of oil and gas-producing countries.
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| first_indexed | 2024-03-11T17:55:18Z |
| format | Article |
| id | doaj.art-a84cdcb344164778bf2323da4360d58a |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-03-11T17:55:18Z |
| publishDate | 2023-09-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-a84cdcb344164778bf2323da4360d58a2023-10-17T14:39:15ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532023-09-0113510.32479/ijeep.14736Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy SectorAbba Ya'u0Mahadi Hasan Miraz1Natrah Saad2Hussaini Bala3Dhanuskodi Rangasamy4Oladokun Nafi’u Olaniyi5Umar Aliyu Mustapha6Department of Accounting, Finance and Economics, Faculty of Business, Curtin University Malaysia, Malaysia,Department of Management, Marketing and Digital Business, Faculty of Business, Curtin University Malaysia, Malaysia,Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia,Department of Accounting, Faculty of Administrative Sciences and Economics, Tishk International University Erbil Kurdistan Region, Iraq,Department of Accounting, Finance and Economics, Faculty of Business, Curtin University Malaysia, Malaysia,Department of Accounting, Finance and Economics, Faculty of Business, Curtin University Malaysia, Malaysia,Universiti Teknologi MARA (UITM), Malaysia. Environmental regulation is the responsibility of individuals, corporations, and other entities to prevent environmental damage or improve the tarnished environment. The Environmental law of every country works to protect the natural resources of land, water, air, and soil. There are research evidence that environmental regulation influences Corporate taxes. Economic deterrence theory acted as deterrent to threats of punishment for unwanted or illegal behavior. The fundamental concept of the theory is deterring the taxpayers into compliance by the risk of audit, penalty, etc. The objective of the study is to analyze the impact of economic deterrence theory and environmental regulation on corporate tax evasion, particularly petroleum profit taxes in Nigeria. The components of Economic deterrence theory (tax agents, tax complexity, tax knowledge) and environmental regulations are the independent variables and corporate tax evasion particularly PPT is the dependent variable of the study. It is quantitative research based on primary data which was collected from the oil and gas companies’ representatives. Structural Equation Modelling techniques were applied, and the outcome of the research is a positive and significant relationship between tax agents, tax complexity, tax knowledge, and environmental regulations on corporate tax evasion. The result further shows a positive but non-significant relationship between tax audits and perceived petroleum profit tax evasion. The study draws the attention of policymakers to formulate environmental regulations that are more robust, simple, and flexible, to reduce adverse effects of environmental damage on the economic growth and development of oil and gas-producing countries. http://econjournals.com/index.php/ijeep/article/view/14736energy sectorEnvironmental regulationtax evasioneconomics deterrence theory |
| spellingShingle | Abba Ya'u Mahadi Hasan Miraz Natrah Saad Hussaini Bala Dhanuskodi Rangasamy Oladokun Nafi’u Olaniyi Umar Aliyu Mustapha Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector International Journal of Energy Economics and Policy energy sector Environmental regulation tax evasion economics deterrence theory |
| title | Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector |
| title_full | Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector |
| title_fullStr | Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector |
| title_full_unstemmed | Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector |
| title_short | Effects of Economic Deterrence Theory and Environmental Regulation on Tax Evasion: Evidence from Energy Sector |
| title_sort | effects of economic deterrence theory and environmental regulation on tax evasion evidence from energy sector |
| topic | energy sector Environmental regulation tax evasion economics deterrence theory |
| url | http://econjournals.com/index.php/ijeep/article/view/14736 |
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