The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia

Corporate income tax is the largest source of revenue to Inland Revenue Board of Malaysia (IRBM). Hence, the increase of tax non-compliance among corporate taxpayers concerns IRBM and tax authorities globally as the government loses its major revenue which adversely affects the economy. Tax evasion...

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Main Author:	Azniyati, Md Ralib
Format:	Thesis
Language:	eng eng eng
Published:	2018
Subjects:	HJ4771.6 Income Tax Tax Returns.
Online Access:	https://etd.uum.edu.my/8818/1/S819505_01.pdf https://etd.uum.edu.my/8818/2/S819505_02.pdf https://etd.uum.edu.my/8818/3/s819505_references.docx
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id	my-uum-etd.8818
record_format	uketd_dc
spelling	my-uum-etd.88182021-11-16T02:49:51Z The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia 2018 Azniyati, Md Ralib Md Yusof, Mohd 'Atef Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HJ4771.6 Income Tax. Tax Returns. Corporate income tax is the largest source of revenue to Inland Revenue Board of Malaysia (IRBM). Hence, the increase of tax non-compliance among corporate taxpayers concerns IRBM and tax authorities globally as the government loses its major revenue which adversely affects the economy. Tax evasion of large corporations using accounting manipulations implies the potential role of corporate governance against tax non-compliance. Therefore, this study attempts to determine the impact of corporate governance characteristic to tax compliance among corporate taxpayers specifically the public listed companies in Malaysia. This study was conducted on 111 tax audited cases of public listed company listed on the main market of Bursa Malaysia that had been finalised by IRBM for year of assessment 2013 and 2014. Data from their annual report were then used to determine the corporate governance characteristic of each public listed companies namely (1) board composition (2) independent director service tenure (3) separation of chairman and Chief Executive Officer (4) audit committee competency (5) non-audit service by external auditor and (6) sourcing internal audit function. Next, three models of tax compliance were developed specifically filing, reporting and payment compliance to better capture different compliance issues. Logistic regression results revealed that director service tenure has significant impact on tax compliance where public listed company with an independent director who have been in service for more than 9 years are more likely to be filing compliant. Whereas public listed company with an independent director who have been in service for less than 9 years are payment compliant. However, this study only sampled a small number of public listed companies. Therefore in order to generalize the findings due care should be exercised. This research findings contributes an added value to tax literature and tax authorities on the impact of corporate governance characteristic to specific type of tax compliance of public listed companies in Malaysia. 2018 Thesis https://etd.uum.edu.my/8818/ https://etd.uum.edu.my/8818/1/S819505_01.pdf text eng public https://etd.uum.edu.my/8818/2/S819505_02.pdf text eng public https://etd.uum.edu.my/8818/3/s819505_references.docx text eng public other masters Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng
advisor	Md Yusof, Mohd 'Atef
topic	HJ4771.6 Income Tax Tax Returns.
spellingShingle	HJ4771.6 Income Tax Tax Returns. Azniyati, Md Ralib The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia
description	Corporate income tax is the largest source of revenue to Inland Revenue Board of Malaysia (IRBM). Hence, the increase of tax non-compliance among corporate taxpayers concerns IRBM and tax authorities globally as the government loses its major revenue which adversely affects the economy. Tax evasion of large corporations using accounting manipulations implies the potential role of corporate governance against tax non-compliance. Therefore, this study attempts to determine the impact of corporate governance characteristic to tax compliance among corporate taxpayers specifically the public listed companies in Malaysia. This study was conducted on 111 tax audited cases of public listed company listed on the main market of Bursa Malaysia that had been finalised by IRBM for year of assessment 2013 and 2014. Data from their annual report were then used to determine the corporate governance characteristic of each public listed companies namely (1) board composition (2) independent director service tenure (3) separation of chairman and Chief Executive Officer (4) audit committee competency (5) non-audit service by external auditor and (6) sourcing internal audit function. Next, three models of tax compliance were developed specifically filing, reporting and payment compliance to better capture different compliance issues. Logistic regression results revealed that director service tenure has significant impact on tax compliance where public listed company with an independent director who have been in service for more than 9 years are more likely to be filing compliant. Whereas public listed company with an independent director who have been in service for less than 9 years are payment compliant. However, this study only sampled a small number of public listed companies. Therefore in order to generalize the findings due care should be exercised. This research findings contributes an added value to tax literature and tax authorities on the impact of corporate governance characteristic to specific type of tax compliance of public listed companies in Malaysia.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Azniyati, Md Ralib
author_facet	Azniyati, Md Ralib
author_sort	Azniyati, Md Ralib
title	The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia
title_short	The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia
title_full	The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia
title_fullStr	The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia
title_full_unstemmed	The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia
title_sort	impact of corporate governance characteristic on tax compliance among public listed companies in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2018
url	https://etd.uum.edu.my/8818/1/S819505_01.pdf https://etd.uum.edu.my/8818/2/S819505_02.pdf https://etd.uum.edu.my/8818/3/s819505_references.docx
_version_	1747828467102121984

The impact of corporate governance characteristic on tax compliance among public listed companies in Malaysia

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