ISSN: 2225-8329
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The higher-income group earners in Malaysia contribute a significant amount of direct revenue to the government. Hence, it is vital to measure their level of tax compliance by evaluating the variable that determines their compliance behaviour. The purpose of this research, guided by the Social Influence Theory (SIT), is to analyse the impact of morale, social dynamics, and knowledge on tax compliance among the higher income group earners. This study employed a quantitative approach, and the questionnaires were distributed to the higher income group earners in Klang Valley with a total of 116 returned valid responses. The result indicated that there is a significant positive relationship between tax knowledge and tax compliance. Meanwhile, the tax moral and social dynamic elements show an insignificant relationship with tax compliance, implying that such perceptions could not encourage compliance. As a result, these findings may provide some useful information on the psychological aspects that influence the social structure and government income. This highlights the necessity for the government and tax authorities to implement and build a more efficient tax system that effectively includes the wealthiest in the tax system while also raising the country's economic and social position.
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In-Text Citation: (Mahmood et al., 2023)
To Cite this Article: Mahmood, S., Tarmuji, I., & Hassan, H. (2023). Determinants of Tax Compliance among Higher Income Group Earners using Social Influence Theory. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(2), 221–238.
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