The relationship of trust in authority, procedural fairness and tax policy reform on voluntary compliance during the covid-19 pandemic in Malaysia

• Main Authors: Khamis, Izzie Hadzree, Mastor, Nor Hamimah
• Format: Article
• Language: English
• Published: Human Resource Management Academic Research Society 2022
• Subjects: HB615-715 Entrepreneurship. Risk and uncertainty. Property
• Online Access: http://eprints.utm.my/id/eprint/100484/1/IzzieHadzreeKhamis2022_TheRelationshipofTrustinAuthority.pdf; http://eprints.utm.my/id/eprint/100484/; http://dx.doi.org/10.6007/IJARBSS/v12-i7/14316

The COVID-19 pandemic which occurred in early 2020 is the most concerning topic around the world. Without a doubt, Covid-19 has badly given implications for social, economic, and political aspects of most nations which also impacted global human lives. In Malaysia, it is proven that Covid-19 has mainly caused business activities due to the travel restrictions and border closures such as Movement Control Order (MCO) which is also implemented around the globe. This significant impact on the economy eventually included the tax sector. Tax as the main source of government revenue is crucial to fund crisis response and recovery, in addition to balancing the government’s effort in rebuilding Malaysia’s fiscal resilience while maintaining its social responsibilities. The condition of taxpayers during this pandemic period also affects the fulfillment of their tax obligation and will give an impact on the country's revenue. This article is an early study to examine the effect of trust in authority, procedural fairness, and tax policy reform on the voluntary compliance response to Covid-19 in Malaysia. Understanding the level of trust in authority, procedural fairness, and tax policy reform is essential to improve tax voluntary compliance. Hence, helps to understand that voluntary compliance facilitates enhancing a viable source of funding for the government.