Examining the determinants of tax arrears: Evidence from Malaysia

The objective of this paper primarily aims to determine the factors influencing tax arrears amongst Malaysian tax payers by using demographic variables such as: age, gender, marital status, education, income and occupation as explanatory variables. It is conducted with an aim to complement prior res...

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Main Authors:	Hamid, Zarinah, Radzuan, Neazlin
Format:	Article
Language:	English
Published:	Global Academic Research 2017
Subjects:	H Social Sciences (General) HJ Public Finance HJ2240 Revenue. Taxation
Online Access:	http://irep.iium.edu.my/61738/ http://irep.iium.edu.my/61738/ http://irep.iium.edu.my/61738/1/IJAFB-2017-06-12-14.pdf

id	iium-61738
recordtype	eprints
spelling	iium-617382018-02-01T01:37:07Z http://irep.iium.edu.my/61738/ Examining the determinants of tax arrears: Evidence from Malaysia Hamid, Zarinah Radzuan, Neazlin H Social Sciences (General) HJ Public Finance HJ2240 Revenue. Taxation The objective of this paper primarily aims to determine the factors influencing tax arrears amongst Malaysian tax payers by using demographic variables such as: age, gender, marital status, education, income and occupation as explanatory variables. It is conducted with an aim to complement prior research through exploring possible relationship between tax compliance behaviour and tax arrears. A number of previous literatures are cited in view to confirm the relationship among these variables. Based on the analysis of the available data, this study employs a multiple regression approach for 3,469 observations which are extracted from the national survey commissioned by IRB in 2011. A stepwise backward elimination method is utilized. The results show that gender, marital status, education and occupation are statistically insignificant at 5% level. Meanwhile two explanatory variables, i.e. age and income level are found to be statistically significant and able to explain tax arrears. Conclusion is then deduced that a negative relationship is observed between tax compliance behaviour and tax arrears. To improve future research, the use of secondary data is proposed for more accurate analysis. There is also an opportunity to broaden similar research to other tax related components and sectors which are still remained unexplored such as tax rates, audit probabilities and penalty structures. Global Academic Research 2017-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/61738/1/IJAFB-2017-06-12-14.pdf Hamid, Zarinah and Radzuan, Neazlin (2017) Examining the determinants of tax arrears: Evidence from Malaysia. International Journal of Accounting, Finance and Business, 2 (6). pp. 134-146. E-ISSN 0128-1844 http://www.ijafb.com/PDF/IJAFB-2017-06-12-14.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	H Social Sciences (General) HJ Public Finance HJ2240 Revenue. Taxation
spellingShingle	H Social Sciences (General) HJ Public Finance HJ2240 Revenue. Taxation Hamid, Zarinah Radzuan, Neazlin Examining the determinants of tax arrears: Evidence from Malaysia
description	The objective of this paper primarily aims to determine the factors influencing tax arrears amongst Malaysian tax payers by using demographic variables such as: age, gender, marital status, education, income and occupation as explanatory variables. It is conducted with an aim to complement prior research through exploring possible relationship between tax compliance behaviour and tax arrears. A number of previous literatures are cited in view to confirm the relationship among these variables. Based on the analysis of the available data, this study employs a multiple regression approach for 3,469 observations which are extracted from the national survey commissioned by IRB in 2011. A stepwise backward elimination method is utilized. The results show that gender, marital status, education and occupation are statistically insignificant at 5% level. Meanwhile two explanatory variables, i.e. age and income level are found to be statistically significant and able to explain tax arrears. Conclusion is then deduced that a negative relationship is observed between tax compliance behaviour and tax arrears. To improve future research, the use of secondary data is proposed for more accurate analysis. There is also an opportunity to broaden similar research to other tax related components and sectors which are still remained unexplored such as tax rates, audit probabilities and penalty structures.
format	Article
author	Hamid, Zarinah Radzuan, Neazlin
author_facet	Hamid, Zarinah Radzuan, Neazlin
author_sort	Hamid, Zarinah
title	Examining the determinants of tax arrears: Evidence from Malaysia
title_short	Examining the determinants of tax arrears: Evidence from Malaysia
title_full	Examining the determinants of tax arrears: Evidence from Malaysia
title_fullStr	Examining the determinants of tax arrears: Evidence from Malaysia
title_full_unstemmed	Examining the determinants of tax arrears: Evidence from Malaysia
title_sort	examining the determinants of tax arrears: evidence from malaysia
publisher	Global Academic Research
publishDate	2017
url	http://irep.iium.edu.my/61738/ http://irep.iium.edu.my/61738/ http://irep.iium.edu.my/61738/1/IJAFB-2017-06-12-14.pdf
first_indexed	2023-09-18T21:27:33Z
last_indexed	2023-09-18T21:27:33Z
_version_	1777412292705517568

Examining the determinants of tax arrears: Evidence from Malaysia

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