Running Head: BUSINESS BEHAVIOUR

Influence of Tax on Business Behaviour

[Name of Institute]

[Name of Student]

[Date]
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Table of Contents

Introduction ..................................................................................................................................... 3
Methodology ................................................................................................................................... 4
Data Analysis .................................................................................................................................. 5
Collection of data ............................................................................................................................ 5
Secondary Data ........................................................................................................................... 5
GANTT Chart ................................................................................................................................. 6
 Business Behaviour 3

Influence of Tax on Business Behaviour

Introduction

The main area of governmental policy of economics is that what the government give to

its economy. Accordingly, government mostly changes the rules and frameworks to force or

influence the change in business in the way they want. Business behavior is deeply affected by

the governmental tax policies and implications. The policy of tax always effects the cost of

business (Yue, 2018). The interest rate level is observed by the group which is appointed by the

government. Hitting to make the highest value of firm, the managers of finance of medium, large

and small multinational enterprises always tries to optimize tax liabilities of their companies. The

consideration of tax regarding to the regional location, type of an organization, timings of their

transactions has increase the risk of making the financial strategies and decisions according to

the tax policies of government imposed on the companies and their transactions (Huang, 2018).

This conditions specifically satisfies for the multinational organisations who made

international transactions on daily basis or monthly basis. Although, the maximizing of the tax

value is the most effective principle of the management of company’s finance, the usage of “Tax

Planning Strategies” has the severe impact on the finance of any organisation and their decisions

of investments in their interest areas. Many kinds of disturbance and distortions can be

understand and identified in this regard, amongst the unjustified handling of tax with regards to

equity and debt, and the system of tax nationally.

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Methodology

The nature of this proposal is very much analytical and descriptive. The section seeks for

the understanding the methodology and designs which are used between the conduction of this

study. This study is the set of several procedures which are done for the construction of a plan

which is systematic and can assist in achieving the research objective, the proper definition of

research design is; “an approach to integrate various elements of a research project in a

consistent and coherent fashion in order to address a predefined set of study question”.

Methodologies which are provided by the regulatory organisations for the implication of taxes on

business areas are concerned from the “Gap” concept which has two basic connects; “CIT based

gap” and “CIT gap”. The “CIT base gap” is basically a difference of declared tax and potential

tax on the basis of the “current-year” operation, whilst “CIT gap” is the calculated ration

between the potential and declared liabilities (Ba et, al., 2018).

For computing the gaps and potentials, several calculations methodologies are used

which are initiated by the “Gross Operating Surplus”. The methods of computing potential has

considered many theoretical differences amongst statistical values of taxes. Many adjustments

are established to reflect the contradictions between business behavior taxation policies. The

recent study have proposed the “Conceptual Framework” to define and bring the understanding

and explanation of the latest tax phenomenon and its noncompliance. The conceptual framework

on the behavior of business tax has six (6) constructs (Tarmizi, 2017). This model has only one

variable which is dependent, which the noncompliance of tax and four are the variables which

are independent. The variable constructs are service quality of tax, the quality of public

governance tax, penalties of tax ratios and rates. Moreover, according to some religious

perspectives, there are some moderated models which are also integrated in these conceptual
 Business Behaviour 5

frameworks. For the developing countries, there are some sufferings from the noncompliance of

taxes. To have an efficient recovery from the taxation problem and its behavior on business, the

solution must have to satisfy the requirements of the country’s business. The recent conceptual

model for the business tax influence has been adjusted according to the latest taxation policies

and its impact on business behavior.

Data Analysis

The analysis of data provided by the usage of huge analytical data, procedure of

analysing data has the steps of editing, classification, presentation and business variables. The

data analysis is performed by the descriptive of “SPSS” for evaluate the central measures of

tendency, dispersion and deviation. This study is characterised by the effects of taxes on business

organisations and their behavior and the duration of the study is devided into several parts. All

the aspects of behavioral change and impact due to the taxation procedures are descriptively

stated in this study. The research process has explained the procedures and methods which

followed the implication process of tax, the behavior and effects of business organisation on

these implications and there outcomes. This data brings up with change of environment of

business industries after the new imposing of tax and assessment of influence with is done by the

implications

Collection of data

The study is consist of the secondary data sources. All the collection of data is done on the

Secondary Data

Following important data sources have been used for the collection of secondary data
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1- Theses and articles from many libraries which have best materials for the research

articles

2- PDF papers and articles from several websites which describes the behavior of

organisations due to tax implications

3- Presenting and participating in some conferences which were organised in different

places

4- Specialised magzines, periodic articles, and past studies which has relevance with this

study in many aspects

5- Governmental statements which are issued for the tax audit of multinational organisations

6- Questionnaire to the business professdionals and their reviews

7- The observation methods in the organisations after the implications of new tax policies

8- Surveys to the industries which are expected to be expected for influenced by the

taxation in their business and noted the difference in their business behaviour

GANTT Chart

Activity June July August September

Week number 1 2 3 4 5 6 7 8 9 10 11

Read the

literature

Finalise

Objectives

Draft Literature

Review
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Read the

Methodology

Literature

Devise Research

Approaches

Draft Research

Strategy &

Method

Develop survey

Questionnaire

Pilot Test &

Revise

Questionnaire

Administrator

Questionnaire

Enter Data into

System

Analyse the

Data

Draft the

Finding Chapter

Update

Literature Read
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Complete

Remaining

Chapters

Submit to the

Tutor & await

feedback

Revise Draft

format for

Submission

Write

conclusions and

implications

Final

Submission
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References

Huang, Y., 2018. China’s Business Tax to Value-Added Tax Reform’s Impact on Corporations’

Investment and Hiring Behavior.

Song, Y., Wu, D., Yuan, L. and Ba, C., 2018, February. Impact Analysis of Replacing Business

Tax with Value-added Tax on Water Conservancy Project Cost. In 4th Annual

International Conference on Material Engineering and Application (ICMEA 2017).

Atlantis Press.

Tarmizi, H.B., Daulay, M. and Muda, I., 2017, March. Impact of the Economic Growth and

Acquisition of Land to the Construction Cost Index in North Sumatra. In IOP Conference

Series: Materials Science and Engineering (Vol. 180, No. 1, p. 012004). IOP Publishing.

Yue, Q. and Peng, M., 2018, June. Using SWOT to Analyze the Advantages and Disadvantages

of China's Implementation of" Business Tax to VAT" Policy. In 2018 2nd International

Conference on Education, Economics and Management Research (ICEEMR 2018).

Atlantis Press.