Exploring The Determinants Of Tax Non-Compliance Among Self-Employed Taxpayers In Malaysia: Insights From Tax Auditors

• Main Author: Zalikha, Jainanl
• Format: Thesis
• Language: English; English
• Published: 2024
• Subjects: HJ4771.6 Income Tax. Tax Returns.
• Online Access: https://etd.uum.edu.my/11296/1/s831495_01.pdf; https://etd.uum.edu.my/11296/2/s831495_02.pdf; https://etd.uum.edu.my/11296/

Tax non-compliance threatens government revenue and development. Although prior studies have examined this subject, tax auditor viewpoints on tax evasion still need to be included. This tax auditor's experience may help identify determinants of tax noncompliance among self-employed taxpayers. This study analyses the relationships between characteristics of businesses, taxpayers' tax knowledge, taxpayers' recordkeeping, tax agents' involvement, and tax non-compliance among self-employed individuals in Malaysia from the viewpoint of tax auditors. Intentional or accidental tax evasion violates tax laws. Data collection was conducted using online questionnaires, and four hypotheses were tested in this study. The questionnaire has been distributed to tax audit officers at the IRBM in Malaysia. The survey succeeds in yielding 123 respondents. The analysis exhibits that characteristics of business and tax agent involvement significantly affect tax non-compliance, while tax knowledge and taxpayer record-keeping are not significant. However, the analysis acknowledges sample representativeness is limited. Therefore, future studies should increase samples to improve regression model accuracy and expand findings to determine determinants of tax non-compliance among self-employed individuals in Malaysia. The conclusions drawn from the study are valuable for a range of stakeholders, including the Inland Revenue Board of Malaysia (IRBM) and government entities. Furthermore, academics and educators stand to gain a more profound comprehension and insight into the factors influencing tax non-compliance among self-employed taxpayers. This study makes a valuable contribution to the knowledge base about enhancing tax adherence in Malaysia through its emphasis on reducing tax collection costs and promoting voluntary compliance.