Tax Literacy and Compliance Among Tax-Exempt Cooperatives in General Santos City

This research evaluated the correlation between tax literacy and tax compliance among tax-exempt cooperatives in General Santos City. Additionally, the study examined tax literacy in terms of economic, behavioral, and knowledge/awareness factors, while tax compliance was assessed in terms of the filing of tax returns, submission of audited financial statements, maintenance of books of account and accounting records, and updating of members' Tax Identification Numbers (TINs). Data from representatives of tax-exempt cooperatives were collected using a validated structured survey questionnaire. The researchers employed stratified sampling techniques and analyzed the data using descriptive statistics and correlation analysis. The results demonstrated that the overall level of tax literacy was moderate, with economic and behavioral factors rated as high and knowledge/awareness rated as moderate. Overall, tax compliance with the Bureau of Internal Revenue (BIR) was very high, particularly in terms of the filing of tax returns, submission of audited financial statements, and maintenance of accounting records. Furthermore, the updating of members’ Tax Identification Numbers (TINs) was rated as high. The results also demonstrated a statistically significant positive correlation between tax literacy and tax compliance (r = .479, p < .001). The findings indicated that cooperatives that are more knowledgeable about taxes tend to comply better with the requirements set forth by the BIR. As a result, it is recommended that cooperatives receive ongoing tax education, training, and technical assistance to enable them to maintain their tax-exempt status and privileges effectively over time.

Tax Literacy, Tax Compliance, Tax-Exempt Cooperatives, Economic Factors, Behavioral Factors, Knowledge and Awareness

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