Journal Screenshot

International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Examining the Moderating Effect of Tax Knowledge on the Relationship between Individual Factors and Income Tax Compliance Behaviour in Malaysia

Nivakan Sritharan, Sahari Salawati

http://dx.doi.org/10.6007/IJARAFMS/v9-i3/6355

Open access

The aim of this study is to clarify the role of individual factors on individual taxpayers’ tax compliance behaviour and to find out moderating role of tax knowledge between individual factor and tax compliance behaviour where the study was applied to the taxpayers across Malaysia, the research had destitute (419) questionnaires. As a result of analyses of 419 questionnaires collected from top and mid-level taxpayers across Malaysia, it has been observed that individual financial position, referral group, political influence, religiosity and cultural influence have a positive effect on tax compliance behaviour. Besides, tax knowledge has moderate the relationship between individual factor and compliance. The researcher used survey method of research design and targeted individual taxpayers across Malaysia as population. A sample of 419 respondents had been taken for this study, using convenient sampling method. Correlation, multiple regression and hierarchical regression analysis had been employed to analyse the data. This paper studied individual factor variables, which finally fills the gap existed in the literature and contributes as a justification for policymakers.

1. Abuamria F. M. J. (2019). The Effect of Deterrence Factors on Discourage Shadow Economy Level and Tax Evasion, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (1): 65-70, http://dx.doi.org/10.6007/IJARAFMS/v9-i1/5725 (DOI: 10.6007/IJARAFMS/v9-i1/5725)
2. Ahangar, R., Bandpey, H., & Rokny, H. (2011). An Investigation into the determinant of effective factors on tax evasion (Empirical study of Iran Tax Affairs Organisation). American Journal of Scientific research, 5(2), 99-113.
3. Ahmed, A., & Kedir, S. (2015). Tax Compliance and its Determinant: The Case of Jimma Zone, Ethiopia. International Journal of Research in Social Sciences, 6(2), 2-15.
4. Alabede, J., Ariffin, Z., & Idris, K. (2011). Determinants of tax compliance behaviour: A proposed model for Nigeria. International Research Journal of Finance and Economics,78(11), 5-11.
5. Alshira’h, A. F. (2019). The Effect of Peer Influence on Sales Tax Compliance among Jordanian SMEs. International Journal of Academic Research in Business and Social Sciences, 9(3), 710–721.
6. Asrinanda, Y. D. (2018). The Effect of Tax Knowledge, Self-Assessment System, and Tax Awareness on Taxpayer Compliance. International Journal of Academic Research in Business and Social Sciences, 8(10), 539–550.
7. Brooks, R. (2001). Race, income, and perceptions of the U.S. court system. Race, income, and perceptions of the U.S. court system, 19(2). 20-35.
8. Chan, W. C., Troutman, S, C., & Bryan, D. (2000). An expanded model of taxpayer compliance: Empirical evidence from United States and Hong Kong. Journal of International Accounting, Auditing and Taxation, 9(2), 83 –103.
9. Ching, S. P. (2013). Determinants of tax non-compliance in Malaysia (Master Dissertation). Universiti Tunku Abdul Rahman, Malaysia.
10. Cohen, S. S. (1966). To tax and to please - the greatness of the United States, National Industrial Conference, Board of New York, 15 December, 268-272.
11. Coleman, C., & Freeman, L. (1997). Cultural foundations of taxpayer attitudes to voluntary compliance. Australian Tax Forum, 13(3), 311-337.
12. Dubin, J. A (2012). The causes and consequences of income tax non-compliance. New York: Springer.
13. Eriksen, K., & Fallan, L. (1996). Tax knowledge and attitudes towards taxation; A report on a quasi-experiment. Journal of Economic Psychology, 17(3), 387-402.
14. Fagbemi, T. O., Uadiale, O. M. and Noah, A. O. (2010). The Ethics of Tax Evasion: Perceptual Evidence from Nigeria. European Journal of Social Sciences, 5(3), 360-371.
15. Gërxhani, K. (2007). Explaining Gender Differences in Tax Evasion: The Case of Tirana, Albania. Feminist Economics, 13(2), 119-155.
16. Grasmick, H. G, Bursik, R. J., & Cochran, J. K., (1991). Render Unto Caesar What Is Caesar's:Religiosity and Taxpayers' Inclinations to Cheat. The Sociological Quarterly, 32(2), 251-266.
17. Grewal, I. (2018, December 06). Responsibilities of Individual Income Tax - 3E Accounting
18. Malaysia. Retrieved April 5, 2019, from https://www.3ecpa.com.my/resources/malaysia-taxation/
19. individual-income-tax/responsibilities-of-individual/
20. Harjito, D. A., Omar, M. R., Arffin, A. N., & Latiff, A. R. (2005). Tax Literacy Rate among tax payers: Evidence from Malaysia. Indonesian Journal of Accounting and Auditing, 9(1), 2-10.
21. Hasseldine, J., and Hite, A. P. (2003). Framing, gender and tax compliance. Journal of Economic Psychology, 24(4), 517-533.
22. Hong, T. J. (2005). Statistical Techniques in Business Research: A Practical Approach. Kuala Lumpur: Pearson Prentice Hall.
23. Ho J. K., Loo E. C., & Lim K. P. (2013). Perspective of non-taxpayers’ perceptions on issues of ethics and equity in tax compliance. Malaysian Accounting Review, 5(2), 47-59.
24. Inland Revenue Board. (2018). Resident Individual. Retrieved September 24, 2018, from http://www.hasil.gov.my
25. Kasipillai, J., & Shanmugam, M. (1995). Malaysia: Towards a 2020 Vision of Taxation. Asia Pacific Tax Bull

To cite this article: Sritharan, N., Salawati, S. (2019). Examining the Moderating Effect of Tax Knowledge on the Relationship between Individual Factors and Income Tax Compliance Behaviour in Malaysia, International Journal of Academic Research in Accounting, Finance and Management Sciences 9 (3): 160-172