Assessment of tax compliance of public market vendors in the province of Rizal: a proposed input in the current tax system of market vendors calendar year 2016 Christopher G. Abrial, Ber E. Dela Cruz, Ronelo F. Desalisa, Jr. and Kiel Philip G. San Diego

Thesis BSA University of Rizal System, Binangonan 2017

includes bibliographical references

This study is primarily focused on assessment of tax compliance of public market vendors in the province of Rizal: a proposed input in the current tax system of market vendors, Calendar Year 2016. The researchers chose to use the widely used descriptive method for adequate and accurate interpretation of data. Public market vendors in the Province of Rizal served as the subject of the study. Major instrument used were questionnaires based from the Economic Theory of Tax Compliance developed by Allingham, Sandmo (1973). Data were gathered through walk-in interview with targeted public market vendors in the province of Rizal. Based on the presentation, interpretation and analysis of data gathered, the researchers formulated a summary, conclusion and recommendation in the findings of the study. The results in the survey showed that most of the public market vendors in province of Rizal are not aware of tax compliance. In terms of tax rate, the higher the tax rate the more the public market vendors not to comply with the tax requirements. In terms of tax audit, the public market vendors find it or the auditing itself not cost effective, in the way that they neglect to have it often. With regards to probability of being caught, the tax orientation and practices, Bureau of Internal Revenue (BIR) did not show concern Public Market Vendors but implemented laws for them to abide. It was just that the public market vendors were unaware of those tax laws. The outcome of the researcher's survey implied that most of the market vendors in Rizal did not comply except from Tanay Public Market which was required to comply on their income tax. The researchers verified the null hypothesis, concluding that there is a significant difference correlation between the tax compliance of public market vendors when grouped according to personal profile and also when grouped according to business profile. Moreover, the findings of the study showed that, mostly, the public market vendors in selected areas in Rizal were not compliant in relation to tax laws and requirements thus, the researchers made a proposed input in the current tax system in accordance to the public market vendor's ability to pay their taxes. To sum it up, the rationale of the tax compliance of public market vendors in the Province of Rizal varies into tax rate, tax audit, probability of being caught, and tax practices.