Personal income tax compliance under the malaysian taxation system

The purpose of audit enforcement by Inland Revenue Board of Malaysia (IRBM) always aims to higher tax compliance and followed by increase the tax collection. The study is therefore to examine the significant determinants of personal income tax compliance in Malaysia. However, economic and social fac...

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Main Author:	Ong Yih Tat
Format:	Thesis
Language:	English English
Published:	2023
Subjects:	HJ4629-4830 Income tax
Online Access:	https://eprints.ums.edu.my/id/eprint/39072/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/39072/2/FULLTEXT.pdf
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id	my-ums-ep.39072
record_format	uketd_dc
spelling	my-ums-ep.390722024-07-11T08:30:47Z Personal income tax compliance under the malaysian taxation system 2023 Ong Yih Tat HJ4629-4830 Income tax The purpose of audit enforcement by Inland Revenue Board of Malaysia (IRBM) always aims to higher tax compliance and followed by increase the tax collection. The study is therefore to examine the significant determinants of personal income tax compliance in Malaysia. However, economic and social factors also play a large role in the individual’s evasion decision. The researcher therefore includes the economic and social variables in the study. A quantitative approach was taken with secondary data obtained from IRBM, Economics and Social Data from Malaysian Department of Statistics, Malaysian Economic Planning Unit and Ministry of Higher Education from 2002 to 2017 were used to generate the results. EViews was the main statistical tool to conduct the analysis and in turn to answer the proposed hypothesis. The study supported the effect audit rate SG, Gross Domestic Product (GDP), employee, own account worker, age group between 15-64, bumiputras and enrolment on Individual Income Tax Collection with a significant of 5 per cent with positive association. Surprisingly, audit rate OG, Consumer Sentiments Index (CSI), age between 0-14 years, age 65 and above on Individual Income Tax Collection with a significant of 5 per cent with negative association. An increasing of 1 per cent of taxpayers who aged between 15-64 years may result in an increasing of 6.21 per cent in personal income tax collection, ceteris paribus with positive association. At this age, realistically, citizens are considered as an active employee or employer. They will earn income and therefore, the income tax revenue will increase. The study validated and expanded on prior research on the relationship between personal income tax revenue compliance, but not in personal income tax filing compliance. Additionally, it has significant implications for the Ministry of Finance and other relevant local authorities in enhancing the personal income tax collection strategy. Theoretical and practical implication are highlighted. 2023 Thesis https://eprints.ums.edu.my/id/eprint/39072/ https://eprints.ums.edu.my/id/eprint/39072/1/24%20PAGES.pdf text en public https://eprints.ums.edu.my/id/eprint/39072/2/FULLTEXT.pdf text en validuser dphil doctoral Universiti Malaysia Sabah Faculty of Business, Economics and Accountancy
institution	Universiti Malaysia Sabah
collection	UMS Institutional Repository
language	English English
topic	HJ4629-4830 Income tax
spellingShingle	HJ4629-4830 Income tax Ong Yih Tat Personal income tax compliance under the malaysian taxation system
description	The purpose of audit enforcement by Inland Revenue Board of Malaysia (IRBM) always aims to higher tax compliance and followed by increase the tax collection. The study is therefore to examine the significant determinants of personal income tax compliance in Malaysia. However, economic and social factors also play a large role in the individual’s evasion decision. The researcher therefore includes the economic and social variables in the study. A quantitative approach was taken with secondary data obtained from IRBM, Economics and Social Data from Malaysian Department of Statistics, Malaysian Economic Planning Unit and Ministry of Higher Education from 2002 to 2017 were used to generate the results. EViews was the main statistical tool to conduct the analysis and in turn to answer the proposed hypothesis. The study supported the effect audit rate SG, Gross Domestic Product (GDP), employee, own account worker, age group between 15-64, bumiputras and enrolment on Individual Income Tax Collection with a significant of 5 per cent with positive association. Surprisingly, audit rate OG, Consumer Sentiments Index (CSI), age between 0-14 years, age 65 and above on Individual Income Tax Collection with a significant of 5 per cent with negative association. An increasing of 1 per cent of taxpayers who aged between 15-64 years may result in an increasing of 6.21 per cent in personal income tax collection, ceteris paribus with positive association. At this age, realistically, citizens are considered as an active employee or employer. They will earn income and therefore, the income tax revenue will increase. The study validated and expanded on prior research on the relationship between personal income tax revenue compliance, but not in personal income tax filing compliance. Additionally, it has significant implications for the Ministry of Finance and other relevant local authorities in enhancing the personal income tax collection strategy. Theoretical and practical implication are highlighted.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Ong Yih Tat
author_facet	Ong Yih Tat
author_sort	Ong Yih Tat
title	Personal income tax compliance under the malaysian taxation system
title_short	Personal income tax compliance under the malaysian taxation system
title_full	Personal income tax compliance under the malaysian taxation system
title_fullStr	Personal income tax compliance under the malaysian taxation system
title_full_unstemmed	Personal income tax compliance under the malaysian taxation system
title_sort	personal income tax compliance under the malaysian taxation system
granting_institution	Universiti Malaysia Sabah
granting_department	Faculty of Business, Economics and Accountancy
publishDate	2023
url	https://eprints.ums.edu.my/id/eprint/39072/1/24%20PAGES.pdf https://eprints.ums.edu.my/id/eprint/39072/2/FULLTEXT.pdf
_version_	1804890367664848896

Personal income tax compliance under the malaysian taxation system

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