tax compliance – Jurnal Pengurusan

Economic Constraint and Self-Tax Relief: Effects on Tax Compliance and Tax Evasion

asriwn — Wed, 13 Nov 2024 03:42:12 +0000

This paper investigates the impact of self-tax relief on tax compliance and tax evasion among individual taxpayers as well as the influence of economic constraints on these relationships. This study employs a survey methodology that specifically targets individual taxpayers in Malaysia. Leveraging on the theory of planned behaviour, the findings reveal that self-tax relief has a positive effect on tax compliance and a negative effect on tax evasion. The findings also reveal that economic constraint moderates the relationship between self-tax relief with tax compliance and tax evasion. This study makes significant contribution to the literature through addressing the role of economic factors in determining the behaviour of individual taxpayers. Despite ongoing discussions on how economic constraints influence tax compliance and tax evasion, empirical evidence remains limited. More specifically, this study addresses a research gap focusing on the impact of current economic constraints on the relationship between self-tax relief, tax compliance, and evasion. The study provides implications for policymakers on the need to account for economic factors and tax policy. It specifically suggests improvements in the tax structure such as continuous assessment of the value of self-tax relief that could encourage tax compliance and mitigate evasion.

Governance Quality of Political Stability and Rule of Law on Tax Compliance: A Mediation Analysis of Tax Morale

asriwn — Fri, 31 Mar 2023 07:03:18 +0000

The unresolved tax compliance dilemma gives a signal of consideration/ requirement of additional factors that will influence tax compliance, such as a governance-based approach. This paper investigates the association between governance quality and tax compliance, with tax morale as a mediator. Two dimensions of governance quality were considered: political stability and the rule of law. A quantitative survey of 592 salaried and self-employed taxpayers in East Malaysia was conducted. Partial Least Squares-Structural Equation Modelling (PLS-SEM) was used to analyse the data. Theoretically, the present research contributed to knowledge by supporting the significant role of tax morale in the mediation association between the rule of law and tax compliance. Tax compliance can also be improved when taxpayers have high tax morale. Practically, the findings aid policymakers and governments that an ideal governance mechanism via a stable political environment is crucial to increasing tax compliance. Nevertheless, the government’s approach to enforcing an effective rule of law was viewed as a more promising strategy for boosting the morale of taxpayers.

Taxpayers Compliance Behaviour: Economic Factors Approach

apriyaliwahab — Tue, 11 Oct 2022 06:21:41 +0000

Many developing countries have been integrating multiple tax brackets within the reforms of their respective tax regimes. Since tax systems were introduced in Asian countries several centuries ago, the determinants of tax compliance have been found to differ between countries. No universal findings are highlighted by researchers pertaining to genuine tax compliance determinants among countries sharing similar tax systems, cultures and ethnicities. The present paper attempts to reveal the determinants of tax compliance in Malaysia in a self-assessment system (SAS) with special emphasis on individual taxpayers. Four tax compliance determinants are examined: the probability of being audited; the perception of government spending; tax rates; and the role of the tax authority. From a survey of 1,073 respondents, the results show that all four determinants have a significant impact on tax compliance. The results of the present study may be useful for policymakers in relation to improving tax compliance in light of the four factors. By identifying the a fore mentioned determining factors, the present study further contributes by providing evidence of other key tax compliance determinants in a developing country, particularly in Asia, that is generally under researched. These determinants are expected to affect tax compliance behaviour in other countries that have similar taxpayer backgrounds, cultures, economic environments and policies. The present study may also be utilised to provide further information to assist tax authorities in other Asian countries to improve their respective SAS plans in the future.

Outsourcing Malaysia Federal Tax Audit: The Stakeholders’ Views

Nazira Adnan — Sun, 09 Oct 2022 04:50:00 +0000

This study investigates the feasibility of outsourcing tax audit work in Malaysian tax system to enhance administration efficiency, to curb tax evasion and abusive avoidance, and to improve revenue collection without introducing a new tax. The current tax audit, carried out by internal auditors of Inland Revenue Board of Malaysia, could only be performed on a small numbers of taxpayers due to high administrative cost in terms of audit cost and cost to employ and train more audit personnel. Nevertheless, without tax audit, tax non-compliance activity could not be curbed and government would be at high risk of losing its revenue. One of the possible ways to increase audit work is through strategic outsourcing. However, decision to outsource tax work should be critically examined because outsourcing of tax audit is a policy that could potentially affect every taxpayer. This paper discusses the views of the stakeholders (tax authorities, the taxpayers and tax agents) on the value of tax audit outsourcing. Using a mixed method approach, this study finds contradicting opinions on the idea of implementing external tax audit in Malaysia. While the tax authorities are hesitant to the idea, the companies as tax payers and the tax agents show favorable responds to the implementation of outsourced tax audit in Malaysia.