Does Tax Knowledge Motivate Tax Compliance in Malaysia?

Abstract

This study aims to clarify whether tax knowledge of individual taxpayers motivates tax compliance in Malaysia. Studies with similar topics express the fact that there still exists a gap in profiling the demographic characteristics of knowledgeable taxpayers and better compliant taxpayers in Malaysia. Age, gender, income groups, and education level were the demographic variables used to study the association. The study applied a survey method for data collection. The population targeted was the individual taxpayers across Malaysia, whereby a sample of 419 respondents involved in this study. T-test, One-Way ANOVA, and Pearson correlation analysis had been employed to analyse the data. The outcome of the study reveals that knowledgeable taxpayers are not better tax complaining of taxpayers in Malaysia. Further, the relationship between tax knowledge and tax compliance is negative and insignificant. This paper studied the association of tax knowledge with tax compliance level, which attempt to contribute to the literature and aids tax administration to intensify not only tax law educations but also tax penalties for tax evaders.

Reengineering the Relationship between Tax Knowledge and Voluntary Tax Compliance in Nigeria: The Moderating Role of Tax Service Quality

“…The first hypothesis establishes a negative and insignificant effect between tax knowledge and voluntary tax compliance. The finding is in line with the previous study of (Loo et al, 2010;Salawati et al, 2021). This indicated that taxpayers do not have the technical knowledge to compute their tax liabilities or they find it difficult when doing the calculation.…”

“…The research recommends that government to use tax education to improve tax compliance among the taxpayers. Hence, Salawati et al (2021) found a negative and insignificant between tax knowledge and tax compliance among taxpayers. The study was conducted in Malaysia to examine the influence of tax knowledge on tax compliance.…”

Pengaruh Kesadaran Wajib Pajak, Pengetahuan Perpajakan Dan Kualitas Pelayanan, Terhadap Kepatuhan Wajib Pajak Hotel (Studi Kasus Di Kabupaten Sikka, NTT)

“…Penelitian yang dilakukan oleh (Alkhatib et al, 2020;Alshirah et al, 2022;Mansur et al, 2022;Oktaviani et al, 2019), menyatakan bahwa terdapat hubungan positif dan signifikan antara variabel pengetahuan perpajakan dan kepatuhan wajib pajak. Sedangkan, penelitian yang menghasilkan temuan yang berbeda yakni hubungan yang tidak signifikan antara pengetahuan perpajakan dan kepatuhan wajib pajak ditemukan dalam penelitian yang dilakukan oleh (Hantono & Sianturi, 2021;Hendrawati et al, 2021;Newman et al, 2018;Salawati et al, 2021;Twum et al, 2020).…”

Corporate Tax Compliance and Mediating Role of Personal Tax Compliance Among Malaysian in-House Tax Professionals

“…Certain roles and duties in a business entity are assigned to the employees of the business entity to be performed on behalf of the business entity. The revenue collected by the 'Inland Revenue Board of Malaysia' (IRBM) from the corporate sectors, through direct taxation, is the main source of income contributed to the tax cluster (Sritharan et al, 2021). Although the contributed revenue becomes higher and higher, the decisions made on the tax affairs are decided by a natural person.…”