FACTORS INFLUENCING TAX COMPLIANCE AMONG TAXPAYERS IN MALAYSIA: ANALYZING BASED ON THEORY OF PLANNED BEHAVIOUR
DOI:
https://doi.org/10.35631/AIJBES.829129Keywords:
Tax Compliance, Tax Awareness, Tax Knowledge, Theory Of Planned Behaviour, TaxpayersAbstract
Tax compliance is one of the major challenges for sustainable government revenue and national economic development. The Malaysian government has consistently strived to improve tax administration and encourage voluntary compliance, but non-compliance among taxpayers still poses major challenges. This study explores the link between tax awareness and tax knowledge on tax compliance among taxpayers in Malaysia based on the Theory of Planned Behaviour (TPB). According to TPB, individuals’ behaviour is determined by their intentions which are determined by behavioural beliefs, normative beliefs and perceived behavioural control. In this context, tax awareness is the perception of the importance and social responsibility of taxation by taxpayers, and tax knowledge is the understanding of tax laws, regulations, obligations and procedures by taxpayers. The study employed a quantitative research method by using a structured questionnaire distributed to individual taxpayers in several states in Malaysia. The data were collected using stratified random sampling techniques and the data have been analysed through descriptive statistics and correlation analysis to examine the relationship. The final data collected was 235. The results provide empirical evidence that tax awareness and tax knowledge were positively and significantly associated with tax compliance with tax awareness having stronger relationships. The study adds to the tax compliance literature by extending the application of the Theory of Planned Behaviour in the Malaysian context and has practical implications for policymakers, the Inland Revenue Board of Malaysia (IRBM) and tax educators in designing effective tax education and awareness programs.
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