Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia

Tax non-compliance is a subject that has attracted substantial discussion not only within policy circles but also within the academia. The non-compliance issue is very important as the compliance rate will affect the revenue collection from taxpayers of a country. In view of the importance of tax co...

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Main Authors:	Liew, Wei Lee, Isa, Khadijah, Yussof, Salwa Hana
Format:	Monograph
Language:	English
Published:	2017
Subjects:	HJ2240 Revenue. Taxation
Online Access:	http://irep.iium.edu.my/60948/ http://irep.iium.edu.my/60948/1/RESEARCH%20REPORT.pdf

id	iium-60948
recordtype	eprints
spelling	iium-609482019-02-08T08:37:00Z http://irep.iium.edu.my/60948/ Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia Liew, Wei Lee Isa, Khadijah Yussof, Salwa Hana HJ2240 Revenue. Taxation Tax non-compliance is a subject that has attracted substantial discussion not only within policy circles but also within the academia. The non-compliance issue is very important as the compliance rate will affect the revenue collection from taxpayers of a country. In view of the importance of tax compliance behavior, the present study aims at (1) examining the level of tax knowledge, attitudes and subjective norms, and intention towards tax compliance, (2) comparing the level of tax knowledge and the intention towards tax compliance between those with tax knowledge via formal tax education and those without formal tax education, and (3) investigating factors influencing tax compliance intention based on Theory of Reasoned Action. The study adopts a survey methodology and gathers a sample of diploma and undergraduate students from fourteen higher institutions of learning in Malaysia, a total of 417 were received and usable (92% response rate). In order to achieve the research objective, T-test, Pearson’s correlation analysis and multiple regression analysis were performed. The findings suggest that the level of tax knowledge among the students is moderate and those who have been exposed to formal tax education possess more tax knowledge. Similarly, those who have been exposed to formal tax education have higher intention towards tax compliance. The findings further reveal that tax knowledge, attitudes and subjective norms are significantly and positively correlated with intention toward tax compliance. It is further noted that, while tax knowledge is positively correlated with intention towards tax compliance, it lacks significance once the roles of attitudes and subjective norms are analysed in the multiple regression setting. Perhaps, tax knowledge plays an indirect role in shaping attitudes of the future taxpayers towards tax compliance intention. Instead, attitudes and subjective norms are found to be most influential and to have predictive ability for intention toward tax compliance. The result of the current study may contribute to policy makers, academics and tax administrators especially in developing tax education programmes to increase the awareness and tax knowledge among students (future taxpayers) and consequently, to enhance tax compliance rate and to reduce compliance cost. 2017-12-29 Monograph NonPeerReviewed application/pdf en http://irep.iium.edu.my/60948/1/RESEARCH%20REPORT.pdf Liew, Wei Lee and Isa, Khadijah and Yussof, Salwa Hana (2017) Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia. Project Report. UNSPECIFIED. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HJ2240 Revenue. Taxation
spellingShingle	HJ2240 Revenue. Taxation Liew, Wei Lee Isa, Khadijah Yussof, Salwa Hana Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia
description	Tax non-compliance is a subject that has attracted substantial discussion not only within policy circles but also within the academia. The non-compliance issue is very important as the compliance rate will affect the revenue collection from taxpayers of a country. In view of the importance of tax compliance behavior, the present study aims at (1) examining the level of tax knowledge, attitudes and subjective norms, and intention towards tax compliance, (2) comparing the level of tax knowledge and the intention towards tax compliance between those with tax knowledge via formal tax education and those without formal tax education, and (3) investigating factors influencing tax compliance intention based on Theory of Reasoned Action. The study adopts a survey methodology and gathers a sample of diploma and undergraduate students from fourteen higher institutions of learning in Malaysia, a total of 417 were received and usable (92% response rate). In order to achieve the research objective, T-test, Pearson’s correlation analysis and multiple regression analysis were performed. The findings suggest that the level of tax knowledge among the students is moderate and those who have been exposed to formal tax education possess more tax knowledge. Similarly, those who have been exposed to formal tax education have higher intention towards tax compliance. The findings further reveal that tax knowledge, attitudes and subjective norms are significantly and positively correlated with intention toward tax compliance. It is further noted that, while tax knowledge is positively correlated with intention towards tax compliance, it lacks significance once the roles of attitudes and subjective norms are analysed in the multiple regression setting. Perhaps, tax knowledge plays an indirect role in shaping attitudes of the future taxpayers towards tax compliance intention. Instead, attitudes and subjective norms are found to be most influential and to have predictive ability for intention toward tax compliance. The result of the current study may contribute to policy makers, academics and tax administrators especially in developing tax education programmes to increase the awareness and tax knowledge among students (future taxpayers) and consequently, to enhance tax compliance rate and to reduce compliance cost.
format	Monograph
author	Liew, Wei Lee Isa, Khadijah Yussof, Salwa Hana
author_facet	Liew, Wei Lee Isa, Khadijah Yussof, Salwa Hana
author_sort	Liew, Wei Lee
title	Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia
title_short	Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia
title_full	Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia
title_fullStr	Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia
title_full_unstemmed	Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia
title_sort	tax knowledge and compliance behavior under self-assessment system(sas): perception of students from higher education in malaysia
publishDate	2017
url	http://irep.iium.edu.my/60948/ http://irep.iium.edu.my/60948/1/RESEARCH%20REPORT.pdf
first_indexed	2023-09-18T21:26:25Z
last_indexed	2023-09-18T21:26:25Z
_version_	1777412221941317632

Tax knowledge and compliance behavior under Self-Assessment System(SAS): perception of students from higher education in Malaysia

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