Issues, challenges and problems with tax evasion: the institutional factors approach

Tax evasion, particularly in developing countries is a debatable issue. Evasion is a disease and needs to be minimized so that the black economy or hidden economy can be mitigated. This paper attempts to reveal the determinants of tax evasion from the institutional perspectives. The objective of thi...

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Main Authors: Palil, Mohd Rizal, Abdul Malek, Marlin Marissa, Jaguli, Abdul Rahim
Format: Article
Published: Gadjah Mada University 2016
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Online Access:http://repo.uum.edu.my/22160/
https://jurnal.ugm.ac.id/gamaijb/article/view/12573
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spelling my.uum.repo.221602017-06-04T08:30:41Z http://repo.uum.edu.my/22160/ Issues, challenges and problems with tax evasion: the institutional factors approach Palil, Mohd Rizal Abdul Malek, Marlin Marissa Jaguli, Abdul Rahim HJ Public Finance Tax evasion, particularly in developing countries is a debatable issue. Evasion is a disease and needs to be minimized so that the black economy or hidden economy can be mitigated. This paper attempts to reveal the determinants of tax evasion from the institutional perspectives. The objective of this study is to identify the determinants of tax evasion a decade after the introduction of a Self-Assessment System (SAS). Three institutional perspectives of the determinants of tax evasion were examined, namely the probability of being detected, the role of the tax authority and the complexity of the tax system.The results suggested that the complexity of the system, and the probability of being detected had a significant impact on tax evasion.The results of this study could possibly contribute to the body of knowledge in lieu of combating tax evasion, as well as being an input to tax administrators and policymakers into which ways the determinants can affect compliance.The findings also provide an indicator for tax administrators of the relative importance of the tax system in assisting with the design of tax education programs, simplifying tax systems and developing a wider understanding of taxpayers’ behavior. Gadjah Mada University 2016 Article PeerReviewed Palil, Mohd Rizal and Abdul Malek, Marlin Marissa and Jaguli, Abdul Rahim (2016) Issues, challenges and problems with tax evasion: the institutional factors approach. Gadjah Mada International Journal of Business, 18 (2). ISSN 1411-1128 https://jurnal.ugm.ac.id/gamaijb/article/view/12573
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
topic HJ Public Finance
spellingShingle HJ Public Finance
Palil, Mohd Rizal
Abdul Malek, Marlin Marissa
Jaguli, Abdul Rahim
Issues, challenges and problems with tax evasion: the institutional factors approach
description Tax evasion, particularly in developing countries is a debatable issue. Evasion is a disease and needs to be minimized so that the black economy or hidden economy can be mitigated. This paper attempts to reveal the determinants of tax evasion from the institutional perspectives. The objective of this study is to identify the determinants of tax evasion a decade after the introduction of a Self-Assessment System (SAS). Three institutional perspectives of the determinants of tax evasion were examined, namely the probability of being detected, the role of the tax authority and the complexity of the tax system.The results suggested that the complexity of the system, and the probability of being detected had a significant impact on tax evasion.The results of this study could possibly contribute to the body of knowledge in lieu of combating tax evasion, as well as being an input to tax administrators and policymakers into which ways the determinants can affect compliance.The findings also provide an indicator for tax administrators of the relative importance of the tax system in assisting with the design of tax education programs, simplifying tax systems and developing a wider understanding of taxpayers’ behavior.
format Article
author Palil, Mohd Rizal
Abdul Malek, Marlin Marissa
Jaguli, Abdul Rahim
author_facet Palil, Mohd Rizal
Abdul Malek, Marlin Marissa
Jaguli, Abdul Rahim
author_sort Palil, Mohd Rizal
title Issues, challenges and problems with tax evasion: the institutional factors approach
title_short Issues, challenges and problems with tax evasion: the institutional factors approach
title_full Issues, challenges and problems with tax evasion: the institutional factors approach
title_fullStr Issues, challenges and problems with tax evasion: the institutional factors approach
title_full_unstemmed Issues, challenges and problems with tax evasion: the institutional factors approach
title_sort issues, challenges and problems with tax evasion: the institutional factors approach
publisher Gadjah Mada University
publishDate 2016
url http://repo.uum.edu.my/22160/
https://jurnal.ugm.ac.id/gamaijb/article/view/12573
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score 12.913726