The impact of threat of punishment on tax compliance and non-compliance attitudes in Malaysia

Threat of punishment has been emphasized as one of the effective tools to deter taxpayers’ non-compliance attitudes.Thus this study aims to explore the impact of threat of punishment on both individual taxpayers’ attitudes, compliance and non-compliance. The findings from a mixed-modes survey indicate that threat of punishment is insignificant on taxpayers who are willing to comply with tax laws.They tend to avoid taxes when they are threatened with tax audits and penalties.Overall, threat of punishment appears to have not only an insignificant impact on compliant taxpayers but also trigger their intentions to be less compliant

An analysis of the gap between accounting depreciation and tax capital allowance in Malaysia

Malaysian tax system includes a tax depreciation rule separate from accounting depreciation.This paper is to compares and contrasts the accounting treatment of depreciation and the tax treatment of capital allowance.The gap between the accounting and tax is resulted from different definitions of capital expenditure and qualifying asset and also different deduction rate and useful life used in calculating depreciation.This paper proposes the government to revise the current capital allowance system

The role of tax agents in sustaining the Malaysian tax system

In Malaysia, a self-assessment system has been implemented for all companies for more than a decade.The system necessitates corporate taxpayers to declare and calculate accurate sources of income, estimate income tax payable, keep records for audit purposes, and comprehend income tax legislation.In complying with these demands, many corporate taxpayers have to depend on the assistance of tax agents.Using survey data, this study aims to examine the role of tax agents in sustaining the SAS in Malaysia.This study enhances the understanding of the scope of tax agents’ involvement under the system. Findings from this study are predominantly positive and should be beneficial for policy makers in their efforts to review and modify current tax systems

The impact of social norms on voluntary tax compliance in Malaysia

Tax compliance has always been a major issue for governments worldwide. This emphasizes the need to understand the factors that contributing to individual taxpayer’s compliance decisions that go beyond the standard economics-of-crime approach to include the role of social norms. This study explores the impacts of social norms on taxpayers’ attitudes towards voluntary tax compliance. Findings show that personal norms and subjective norms give a significant impact on the willingness of taxpayers to comply with tax laws. The tax authority is suggested to understand taxpayers’ attitudes in developing appropriate strategy to ensure positive tax attitudes are instilled in Malaysia to easily increase voluntary tax compliance in Malaysia

A cross-cultural study of religiosity and tax compliance attitudes in Malaysia and Turkey

Ensuring compliance in tax collection is very crucial as tax is one of the basic elements of public financing in almost all countries. The issue of compliance in tax research has been explored over many years from different perspectives. Initially, it started with a negative assumption of taxpayers’ compliance attitudes and recently the research has shifted to a more positive attitude of taxpayers. One of the factors that is expected to shape taxpayers’ compliance attitudes is religiosity. Even though a number of studies have started to explore this issue recently, not many studies have used primary data because the majority of the studies were relying on secondary data. Therefore, this study is comparing the impact of religiosity and its components on both tax compliance components, voluntary and enforced tax compliance, in Malaysia and Turkey. Surveys distributed to individual taxpayers were used in both countries. Religiosity is found to have a significant impact on voluntary tax compliance that influences taxpayers’ positive attitudes in both countries. Even though religiosity seems to be an influential factor with respect to tax compliance behaviour, this study has shown that in certain circumstances, it might appear irrelevant

The role of tax agents in sustaining the Malaysian tax system

Abstract In Malaysia, a self-assessment system has been implemented for all companies for more than a decade. The system necessitates corporate taxpayers to declare and calculate accurate sources of income, estimate income tax payable, keep records for audit purposes, and comprehend income tax legislation. In complying with these demands, many corporate taxpayers have to depend on the assistance of tax agents. Using survey data, this study aims to examine the role of tax agents in sustaining the SAS in Malaysia. This study enhances the understanding of the scope of tax agents' involvement under the system. Findings from this study are predominantly positive and should be beneficial for policy makers in their efforts to review and modify current tax systems

The influence of internet addiction and time spent on the internet towards social isolation among university students in Malaysia

Recent research has shown that there is a connection between Internet addiction and time spent on the Internet with social isolation of the users. Therefore, the aim of this study is to examine the influence of Internet addiction and time spent on the Internet towards social isolation among university students in Malaysia. A total of 110 respondents who were undergraduate and postgraduate students from four universities participated in the survey. The collected sample through purposive sampling technique was 110 responses which exceeded the minimum sample size. The research instruments for Internet addiction were adopted from Young Internet Addiction Scale Test which consist of 20 items whereas social isolation was measured using the UCLA Loneliness Scale consisting also of 20 items. Time spent on the Internet was measured based on the number of hours the students spent on social media platforms such as Facebook, WhatsApp, Twitter, and Instagram. The questionnaire was distributed via online channels due to the physical constraints of the Covid-19 pandemic. Data were analysed using IBM SPSS Statistics version 22 and Smart PLS-SEM Version 3.2.8. The measurement assessment showed that the data had fulfilled the composite reliability and convergent and discriminant validities requirements. The findings revealed that the level of Internet addiction, time spent on the Internet and social isolation were moderate. The findings also demonstrated that Internet addiction and time spent on the Internet influenced social isolation among university students

The effects of religiosity and external environment on voluntary tax compliance

This article aims to explore the role of religious values held by taxpayers, as well as taking into account the external environment; namely government, the tax authority and society in enhancing voluntary tax compliance. Employing a self-administered survey (both drop-off and online), this mixed mode methods study involved approximately 300 individual taxpayers in Malaysia. Religiosity is found to have a positive influence in encouraging taxpayers’ willingness to comply with tax laws in Malaysia. In addition, taxpayers’ perceptions towards the government and taxpayers’ interactions with the tax authority appear to have a significant impact on voluntary tax compliance. One of the possible explanations for these results is the strong religious values held by many Malaysians. Other reasons include the democratic rights given to Malaysians and professional relationships between the Inland Revenue Board of Malaysia (IRBM)1 and taxpayers

Board it committees and firm performance: a review of literature

The focus of this paper is to provide a review on board IT committees and firm performance. It is believed that at the board level, IT monitoring committee could play an important role in the board functions about governing Information Technology (ITG) and the performance of firms in the medium-sized enterprises apart from the large and listed firms. Unfortunately, only about 10 % of public organisations have established such a committee, thus, creating a knowledge gap. Moreover, past study shows insignificant boards created this type of committee because they lack thorough leadership on the mechanisms and duties of such committees. Efforts are required to close up this gap by designing execution procedures for this form of involvement. The research design covers the aspects of survey research method, cross-sectional analysis, target population, sampling frame, sample size and sampling technique as well as the research instrument of closed-ended questionnaire for the collection of data. Data and empirical analysis are to involve confirmatory factor analysis with path analysis to determine the measurement and structural model via the covariance-based structural equation model. A well-accepted guideline includes the creation of the board level IT monitoring committee, so, an IT monitoring committee need to be created to contribute to the board functions about ITG and its influence on the performance of firms