Determinants of income tax compliance intention among sole proprietors and partners

• Main Author: Tan, Sheau Hui
• Format: Thesis
• Language: English; English
• Published: 2023
• Subjects: HJ4771.6 Income Tax. Tax Returns.
• Online Access: https://etd.uum.edu.my/10747/1/s829356_01.pdf; https://etd.uum.edu.my/10747/2/s829356_02.pdf; https://etd.uum.edu.my/10747/

Income tax compliance intention refers to taxpayers as citizens who fulfill their rights to pay taxes and complete all required tax filings. The higher income tax compliance intention, the higher income tax compliance behaviour, the more revenue can be generated, and the more resources can be allocated for the development of the countries and the welfare of the society. To ensure that all taxpayers have a higher income tax compliance intention to pay their tax obligations or to comply with tax laws, particularly sole proprietors and partners, tax compliance issues are a major concern for many governments. Due to their lack of tax knowledge and the fact that they are not required to file audited accounts, sole proprietors and partners have more opportunities to conceal their true income. Therefore, this study investigated the determinants of income tax compliance intention among sole proprietors and partners in Malaysia. This study employed the Theory of Planned Behaviour (TPB) as the underlying theory in determining income tax compliance intention among sole proprietors and partners. Three new independent variables: awareness, knowledge, and the perception of government spending, were incorporated into this theory. An online survey was used to collect the data. The findings revealed that taxpayers’ attitudes, subjective norms, perceived behavioural control (PCB), awareness, knowledge, and perception of government spending have a significant and positive relationship with income tax compliance intention among sole proprietors and partners. This study will help the tax authority improve tax compliance intention among taxpayers and increase tax collection annually. Government must continuously reduce tax compliance issues among sole proprietors and partners to achieve the tax revenue target and Inland Revenue Board of Malaysia (IRBM) Corporate Plan 2021-2025.