Salaried and Waged Taxpayers' Internal States and Assessment System in Malaysia

• Main Author: Noraza, Mat Udin
• Format: Thesis
• Language: English; English
• Published: 2012
• Subjects: HJ4771.6 Income Tax. Tax Returns.
• Online Access: http://etd.uum.edu.my/3470/1/s90379.pdf; http://etd.uum.edu.my/3470/8/s90379.pdf; http://etd.uum.edu.my/3470/

The change of taxpayers’ responsibilities as a result of the introduction of the Self Assessment System (SAS) had triggered debates on whether taxpayers are able to perform the required tasks under the new system. SAS demands taxpayers to perform the primary tasks that were previously handled by the tax authority, which emphasise on completing tax returns accurately, including computing the correct tax liabilities. Therefore, the successful implementation of SAS would rely heavily on the performance of the taxpayers in carrying out their responsibilities. However, submitting error-free tax returns is not an easy task, especially for an average taxpayer. It is believed that taxpayers must achieve and possess certain states intrinsically developed to perform their responsibilities successfully. Due to the change in the tax assessment system, the tax authority is currently carrying out new functions, which include providing assistance to taxpayers to assist the latter in performing their new responsibilities. This study reports the results of an investigation of the relationships between taxpayer’s internal states as well as taxpayer assistance and assessment performance and simultaneously considered the moderating influence of taxpayer assistance. The data is collected using a quasiexperimental design known as posttest-only no-treatment control group design. The sample comprises of post-graduate students, who are actual taxpayers as well. Among the elements of the taxpayer’s internal states considered in this study, tax knowledge is found to have significant relationship with assessment performance. The findings also show positive relationships between each tax knowledge dimension and assessment performance. However, taxpayer assistance does not have moderating effect on the relationships of taxpayer’s internal states and assessment performance. The findings of this study have contributed to the body of knowledge because there is a general dearth of published research, particularly in Malaysia that investigates such relationships.