Moslem Taxpayers’ compliance behavior in Malaysia

Abstract

This study investigates Moslem taxpayers' behavior in relation to the concept of Islam, the theory of planned behavior (TPB) and cognitive social theory (CST). Tax is an important issue for the country's development. It is an obligation for its citizens to pay taxes. Therefore, The taxpayers' behavior is one of selfassessment for Moslems in fulfilling their responsibility as good citizenships. The study used data obtained from purposive sampling of taxpayers in all Malaysian states (N=285). Findings showed that taxpayer compliance behavior is directly determined by its intention (niyyah). In the meanwhile, findings showed that morale (akhlaq), subjective norms and tax behavior control did not affect tax compliance behavior directly. This result indicated that the behavior of taxpayers is always influenced by the concept of Islamic thinking, which is, behavior is determined by its intention (niyyah). A sincere and right intention (niyyah) will guide taxpayers to real action. These concrete actions will bring benefits to themselves, others and especially to state development. Intention (niyyah) is determined by morale (akhlaq) and control of tax behavior. These findings represent that individuals in the intention (niyyah) of tax behavior will be influenced by the condition of their soul. Morale (akhlaq)are representations of Islamic values. Morale (akhlaq) will be formed in the soul of a Muslim if there is a balance of the power of science, the power of controlling lust and lust that has been educated by religion and minds.

Determinant Factors of Zakat Compliance Behavior of Muzakki: Evidence from Malaysia

“…This category includes those who go for study. (8) The newly released slave. The explanation indicates that the state should not release its responsibilities to the community included one of those eight conditions.…”

“…Sincere niyyah will be achieved if it going through an honesty, without procrastinating time in the payment of zakat and through a process without manipulation. (2) The niyyah of zakat must be qualified in sharia or applicable law provisions [5]; [6]; [8]. All of it must be the niyyah and purpose to be achieved in conducting zakat behavior so it can be connected to zakat compliance behavior which are calculating zakat according to the rules of zakat, reporting zakat annually and pay it on time [7].…”

“…If through a right process, then Akhlaq of zakat behavior will be visible in every zakat behavior. Akhlaq of zakat behavior can be adapted from previous study [6] & [8] which explains about Akhlaq of tax behavior. Akhlaq of tax behavior can be adapted into Akhlaq of zakat behavior.…”

“…Furthermore, Alghazali explained that the component contained in Akhlaq are 1The strength of science and knowledge (2) control strength when the soul experiences a dilemma to behavior (3) immediately educate the soul with faith in Islam namely aqidah, sharia and Ihsan. (4) The balance of the three elements above so that the soul is formed as Berakhlakhul kharimah [8]. The faith or beliefs about zakat can be adapted from previous study [6] and [8] interpreted as a belief of some truth about zakat based on reason, revelation and Fitrah.…”

“…(4) The balance of the three elements above so that the soul is formed as Berakhlakhul kharimah [8]. The faith or beliefs about zakat can be adapted from previous study [6] and [8] interpreted as a belief of some truth about zakat based on reason, revelation and Fitrah. Muzakki's belief in encouraging zakat compliance behavior can be seen in response to the logical belief indicators that zakat can cleanse the soul of greed for wealth, belief that zakat is a command of Allah and zakat is a form of human empathy towards each other [7].…”