Ethical Perception of Tax Evasion: Determinants and Consequences on Voluntary Tax Compliance

Saragih, Arfah Habib; Putra, I Dewa Nyoman Suartama

doi:10.9744/jak.23.1.1-14

Cited by 12 publications

(17 citation statements)

References 74 publications

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“…It also states that tax knowledge is not a significant factor causing MSME owners to get involved in tax evasion even if it clearly shows a relationship in a few studies, namely: (Rantelangi and Majid, 2017;Saragih and Putra, 2021).…”

Section: Multiple Regression Analysismentioning

confidence: 99%

Influential Factors of Tax Evasion Among Micro, Small, and Medium Enterprises (MSME) Owners in Malaysia

Sathasivam,

Teck-Heang,

Veeriah

et al. 2024

IJARAFMS

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Taxation is a means to collect money from the people of the country, and tax revenue is one of the main sources of income for the government. Tax evasion is a common practice in most countries and ways of minimising it has been a continuous challenge for most governments. Generally, tax evasion is an illegal method of tax avoidance and concerted efforts should be given to curb such actions in the country to ensure justice and equity for the taxpayers. The study aims to identify the factors that may cause tax evasion among the Malaysian Micro, Small, and Medium Enterprises (MSME) owners. A quantitative empirical study was pursued, using validated questionnaire for the collection of data. The non-probability sampling method was used to collect data from 159 respondents. Both the SPSS Version 27 and Smart PLS 4 were used for analysing the data. The results show that tax morale, tax fairness, tax complexity, and attitude towards tax evasion have a significant relationship with tax evasion. However, tax knowledge did not show a significant relationship with tax evasion. The findings from the study may provide valuable insights for policymakers and tax authorities to consider various strategies to reduce tax evasion. Future studies could possibly increase the respondents as well as other constructs.

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Section: Multiple Regression Analysismentioning

confidence: 99%

Influential Factors of Tax Evasion Among Micro, Small, and Medium Enterprises (MSME) Owners in Malaysia

Sathasivam,

Teck-Heang,

Veeriah

et al. 2024

IJARAFMS

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“…Istok and Kanderova (2019) determine the effects of profit-shifting behavior of debt/asset ratio with a focus on the Slovak Republic and turn out to the conclusion that the empirical results show throughout debt channels several Slovak firms transfer their profits to different lower tax jurisdictions. The correlation between ethical perception and voluntary tax compliance was approached by Saragih et al (2021) with the conclusion that tax evasion is negatively influenced by ethical perception, tax knowledge, and effects of idealism, positive effects are generated by a factor as the impact of relativism of ethical perception, meanwhile, no significant effects generate education level and religiosity. Solikah (2022) analyze if the religion factor can be determined the effect of tri pantagan on tax evasion and come to the conclusion that religion can be an important factor in the combat of tri pantagan effect on tax evasion.…”

Section: Tax Evasion Problemsmentioning

confidence: 99%

The Correlation Between Double Taxation Conventions, Tax Compliance, and Tax Evasion. Empirical Evidence From Oecd Countries

Dumiter

2023

Technological and Economic Development of Economy

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The topics approached in this paper are of interest due to the divergent opinions that emerged in the media academics and practitioners concerning how the double taxation conventions are constructed, the official language in which an international convention must be written, and their de facto application, both in bilateral situations and among triangular or multilateral situations. To be more specific, the way in which double taxation conventions are constructed, signed, and implemented will generate changes in the level of direct taxes, at a certain time interval, both economically and legally with a special focus on tax compliance and tax evasion. Consequently, tax compliance is very important because of the behavior of the taxpayer and the willingness to pay taxes both on the national and international levels. Moreover, tax evasion is a serious problem that creates distortion and undermines worldwide trade and commerce. In this article, it is approached the complex relationship between double taxation conventions, tax compliance, and tax behavior in order to establish the connections and interactions between these three important aspects. The objective of this study is o evaluate and assess the interconnections between these three variables. The empirical study is revealed for selected comprehensive OECD countries with a panel data approach and with modeling techniques using Python software. The conclusions of this study reveal that between double taxation conventions, tax compliance, and tax evasion there is manifested strong connections both positive and negative, aspects highlighted by the empirical results, because the complex relationship manifested in practice regarding the stipulation of the law, the financial aspects and the application of fiscal policy, both on national and international levels.

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“…As for the sampling design, this study uses probability sampling to ensure that the units in the sampling frame have equal chances of being selected as the sample unit. The appropriate sample size for this study is calculated as follows (Sekaran & Bougie, 2016):…”

Section: Independent Variablesmentioning

confidence: 99%

“…Multiple regression analysis was also performed to predict the variance of the dependent variable due to the variations of the independent variables. Sekaran and Bougie (2016) emphasise that the model for multiple regression is linear, which causes the data to be summarised in a straight line. In other words, a negative gradient indicates a negative relationship, while a positive gradient indicates a positive relationship.…”

Section: Multiple Regression Analysismentioning

confidence: 99%

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The Influence of Personal and Professional Ethics of Tax Agents on Their Perception of Tax Evasion

Johnes Abit,

Ibrahim,

Baharum

2023

AJAP

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Research aim: This study seeks to identify the relationship between the personal and professional ethics of tax agents and their perception of tax evasion. Design/ Methodology/ Approach: A four-section survey questionnaire was used to collect data from primary sources. A total of 349 questionnaires were collected via online distribution. Research finding: The results suggest a strong positive significant relationship (p < 0.001) between personal ethics and tax agents’ perception of tax evasion. As for professional ethics, the findings show a moderate positive significant relationship (p < 0.001) between professional ethics and tax agents’ perception of tax evasion. Theoretical contribution/ Originality: Considering that this study focuses on tax agents’ perception of tax evasion, the theory pinned to this study is utilitarianism. The theory is used to predict and understand tax agents’ behaviours based on two factors: their perception of tax evasion with the influence of personal and professional ethics. Practitioner/ Policy implication: In the context of this study, government and tax authorities should provide a clear framework to guide the ethical conduct of the tax agents because of the complex nature of the tax planning environment. The framework is important to ensure that tax agents are not trapped between tax minimisation arrangements, aggressive tax planning, and tax evasion. Additionally, tax authorities, the Malaysian Association of Tax Accountants, and the Chartered Tax Institute of Malaysia can continuously organise professional development programmes addressing ethical issues and tax planning arrangements covering different jurisdictions. Research limitation: This study focuses only on tax agents’ perception of tax evasion. Future studies should include accountants, auditors, and company secretaries to gauge their perception of tax evasion because they are also actively involved with taxpayer activities.

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Ethical Perception of Tax Evasion: Determinants and Consequences on Voluntary Tax Compliance

Cited by 12 publications

References 74 publications

Influential Factors of Tax Evasion Among Micro, Small, and Medium Enterprises (MSME) Owners in Malaysia

Influential Factors of Tax Evasion Among Micro, Small, and Medium Enterprises (MSME) Owners in Malaysia

The Correlation Between Double Taxation Conventions, Tax Compliance, and Tax Evasion. Empirical Evidence From Oecd Countries

The Influence of Personal and Professional Ethics of Tax Agents on Their Perception of Tax Evasion

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