Social security contribution evasion
: an evaluation from the perspective of former contribution evaders. Jordan - case study

  • Bassam Al-Subaihi

    Student thesis: Doctoral ThesisDoctor of Philosophy


    Despite the critical nature of the Social Security Contribution Evasion (SSCE) phenomenon, relatively few studies have investigated and analysed the problem. The vast majority of contemporary studies have been undertaken in the USA and Europe; very few in the countries of the developing world. This relative dearth of empirical studies on the SSCE clearly indicates a gap in our knowledge given the absence of reliable empirical evidence towards the cause and the extent of the problem. What is more, current taxation literature is clear in that it shows us that most studies are focused mainly on the individual taxpayer and the relation of these taxpayers to the general role of personal income tax. This is odd as there is a significant evasion problem in other domains, especially in areas such as where companies deliberately choose to evade social security contributions amongst others.

    What this thesis essentially sets out to do is to empirically examine the relationships between the SSCE and several explanatory factors related to the particular context of Jordan from the perspective of former corporate contribution evaders. This thesis gives special attention to Economic Factors (EF) (e.g. tax rate, and fine rate) and Non-Economic Factors (NEF) (e.g. the impact of the Corporation Management Effectiveness (CME), the Legal and Regulatory Structure (LRS), and Ethical and Social Considerations (ESC). To the researcher’s knowledge, there is no study in Jordan that has investigated the problem of contribution evasion from the former corporate contribution evaders’ perspective. The aim of this dissertation is to fill this gap by evaluating the nature of contribution evasion at firm level and to develop an understanding of the main reasons why contribution evasion occurs in Jordan.

    To achieve the research objectives, this study uses a combination of quantitative and qualitative methodologies. The quantitative approach is represented here by multiple regression analysis that relies on the use of a self-administered questionnaire. The qualitative approach, however, is represented by the appliance of semi-structured interviews with key participants. In this study, stratified random probability samples were chosen from the target population of 2264 firms.
    Date of Award2013
    Original languageEnglish
    Awarding Institution
    • Coventry University
    SupervisorDonald Finlay (Supervisor)

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