Cash economy: tax evasion among SMEs in Malaysia

Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, usin...

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Main Authors: Mohamad, Azhar, Zakaria, Mohd Hasrol, Hamid, Zarinah
Format: Article
Language:English
English
Published: Emerald Group Publishing Ltd. 2016
Subjects:
Online Access:http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf
http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf
http://irep.iium.edu.my/55059/
http://www.emeraldinsight.com/journal/jfc
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spelling my.iium.irep.550592017-04-04T08:37:41Z http://irep.iium.edu.my/55059/ Cash economy: tax evasion among SMEs in Malaysia Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia. Findings – The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium). Originality/value – This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. Keywords Malaysia, SMEs, Tax evasion, Cash economy, Corporate income tax Emerald Group Publishing Ltd. 2016 Article REM application/pdf en http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf application/pdf en http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf Mohamad, Azhar and Zakaria, Mohd Hasrol and Hamid, Zarinah (2016) Cash economy: tax evasion among SMEs in Malaysia. Journal of Financial Crime, 23 (4). pp. 974-986. ISSN 1359-0790 http://www.emeraldinsight.com/journal/jfc 10.1108/JFC-05-2015-0025
institution Universiti Islam Antarabangsa Malaysia
building IIUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider International Islamic University Malaysia
content_source IIUM Repository (IREP)
url_provider http://irep.iium.edu.my/
language English
English
topic HB522 Income. Factor shares.Interest.Profit.Entrepreneurship
HJ2240 Revenue. Taxation
spellingShingle HB522 Income. Factor shares.Interest.Profit.Entrepreneurship
HJ2240 Revenue. Taxation
Mohamad, Azhar
Zakaria, Mohd Hasrol
Hamid, Zarinah
Cash economy: tax evasion among SMEs in Malaysia
description Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia. Findings – The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium). Originality/value – This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. Keywords Malaysia, SMEs, Tax evasion, Cash economy, Corporate income tax
format Article
author Mohamad, Azhar
Zakaria, Mohd Hasrol
Hamid, Zarinah
author_facet Mohamad, Azhar
Zakaria, Mohd Hasrol
Hamid, Zarinah
author_sort Mohamad, Azhar
title Cash economy: tax evasion among SMEs in Malaysia
title_short Cash economy: tax evasion among SMEs in Malaysia
title_full Cash economy: tax evasion among SMEs in Malaysia
title_fullStr Cash economy: tax evasion among SMEs in Malaysia
title_full_unstemmed Cash economy: tax evasion among SMEs in Malaysia
title_sort cash economy: tax evasion among smes in malaysia
publisher Emerald Group Publishing Ltd.
publishDate 2016
url http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf
http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf
http://irep.iium.edu.my/55059/
http://www.emeraldinsight.com/journal/jfc
_version_ 1643614670576156672
score 12.925488