Challenges in Understanding Compliance Behaviour of Taxpayers in Malaysia

Asian Journal of Business and Accounting, 3(2), 2010, 101-117

18 Pages Posted: 13 Aug 2012

See all articles by Ern Chen Loo

Ern Chen Loo

Universiti Teknologi MARA

Chris Evans

University of New South Wales

Margaret A. McKerchar

University of New South Wales (UNSW)

Date Written: August 3, 2012

Abstract

Since the implementation of self assessment in Malaysia almost a decade ago, taxpayers’ compliance behaviour has attracted considerable attention. Tax compliance research in Malaysia has predominantly been in the context of income tax and personal taxpayers, and has been conducted using survey methods and experimental approaches. Access to taxpayers’ data is rarely made available to academic researchers by the Inland Revenue Board of Malaysia (IRB), thus studies have tended to rely on self-reported behaviour and convenience sampling which have limited the extent to which findings can be generalised. Further, most studies have considered only a limited range of variables that may or may not influence compliance behaviour which is widely recognised as being a complex phenomenon. Based on studies to date, it appears that Malaysian taxpayers have high ethics and that individuals’ tax knowledge is a key influence on their compliance behaviour. Scope exists for further research using a range of methodologies, studies that are more comprehensive and longitudinal, and using a wider range of taxes, taxpayers, and compliance obligations.

Keywords: Tax compliance, Malaysia

Suggested Citation

Loo, Ern Chen and Evans, Christopher Charles and McKerchar, Margaret A., Challenges in Understanding Compliance Behaviour of Taxpayers in Malaysia (August 3, 2012). Asian Journal of Business and Accounting, 3(2), 2010, 101-117, Available at SSRN: https://ssrn.com/abstract=2128378 or http://dx.doi.org/10.2139/ssrn.2128378

Ern Chen Loo

Universiti Teknologi MARA ( email )

KM26 Jalan Lendu
ALOR GAJAH
ALOR GAJAH, 78000
Malaysia

Christopher Charles Evans (Contact Author)

University of New South Wales ( email )

School of Taxation and Business Law
Australian School of Business, UNSW
Sydney, NSW 2052
Australia

Margaret A. McKerchar

University of New South Wales (UNSW) ( email )

Kensington
High St
Sydney, NSW 2052
Australia

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