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- Title
The Effect of Tax Knowledge, Compliance Costs, Complexity and Morale Towards Tax Compliance Among Self-Employed in Malaysia.
- Authors
Abdul Ghani, Hazman Hadi; Hamid, Nadiah Abd; Sanusi, Soliha; Shamsuddin, Roszilah
- Abstract
Purpose: Self-employed individuals are among the main contributors to direct revenue of Malaysia. Thus, it is vital to assess their level of tax compliance to gauge their awareness in this matter. The objectives of this study are to examine the tax compliance factors among self-employed in Malaysia. Design/methodology/approach: This research applied a quantitative research design in order to identify relationships between the constructs. Survey method chosen as a collection of primary data, which is accomplished by utilising a self-administered survey. Findings: Based on the structural measurement analysis, using Smart PLS version 3, tax compliance costs, tax morale, and tax complexity have significant effects on tax compliance among the self-employed. The analysis also shows that tax knowledge has no significant effect on the level of tax compliance among the self-employed. Research limitations/implications: The study limited to the Malaysian context within the area of self-employed. Practical implications: The government especially the Ministry of Finance, collaborating with the Inland Revenue Board of Malaysia needs to amend the tax policy and tax education as most of the respondents are uncertain of the tax system implemented in Malaysia. Originality/value: From the observation, it can be said that the level of tax compliance is still low although SAS has been implemented for quite some time since 2004. There must be loopholes in the tax system in which the government and the relevant stakeholders need to rectify. Thus, it is important to assess the effectiveness of current tax regime from numerous dimensions so that the issues on tax compliance would be tackled and solved.
- Subjects
MALAYSIA; TAXPAYER compliance; INTERNAL revenue; TAX compliance costs; FREELANCERS; FISCAL policy
- Publication
Global Business & Management Research, 2020, Vol 12, Issue 1, p18
- ISSN
1947-5667
- Publication type
Article