The Effect of Interactional Fairness and Detection on Taxpayers’ Compliance Intentions

Farrar, Jonathan; Kaplan, Steven E.; Thorne, Linda

doi:10.1007/s10551-017-3458-x

Cited by 40 publications

(41 citation statements)

References 50 publications

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“…Therefore, hypotheses H3 is accepted, and the result confirmed that the past positive interactions between taxpayer and tax authority would positively affect tax compliance. A similar finding is reported by previous studies in Malaysia (Razilina et al 2012;Sellywati et al 2017;Ram Al Jaffri et al 2019;Nivakan 2020) and other countries (Smith & Stalan 1991;Niemirowski & Wearing 2006;Feld & Frey 2007;Verboon & Van Dijke 2007;Hartner et al 2008;Murphy 2008;Marhaini 2012;Raihana et al 2014;Farrar et al 2017;Alm 2018;Enachescu et al 2019). Therefore, tax authority should enhance their frontline officers capabilities to improve their customer service performance continuously.…”

Section: Multiple Regression Analysissupporting

confidence: 86%

“…Therefore, if taxpayers feel they receive disrespectful treatment or are suspected of tax evasion, the psychological contract between taxpayers and tax authorities deteriorates, making them less likely to incline to a positive compliance attitude (Murphy 2004). Overall, the positive treatment given by tax administrators when interacting with taxpayers in any form of interaction will have a positive effect on tax compliance behaviour among taxpayers in line with the findings of previous studies (Smith & Stalan 1991;Niemirowski & Wearing 2006;Feld & Frey 2007;Verboon & Van Dijke 2007;Hartner et al 2008;Murphy 2008;Marhaini 2012;Raihana et al 2014;Farrar et al 2017;Sellywati et al 2017;Alm 2018;Enachescu et al 2019;Ram Al Jaffri et al 2019;Nivakan 2020). In addition, the positive treatment received by taxpayers is also able to encourage noncompliant taxpayers (tax offenders) to become a good taxpayer in the future (Feld & Frey 2007;Murphy 2008;Razilina et al 2012).…”

Section: Treatment Provided By Tax Authoritysupporting

confidence: 85%

“…According to Ayres and Braithwaite (1992), the relationship between tax authority and taxpayers involves a psychological contract whereby the respected treatment will strengthen the relationship and thus will encourage tax compliance. On the other hand, authoritarian-shaped treatment will destroy the relationships, leading to tax non-compliance (Feld & Frey 2002;Feld & Frey 2007;Farrar et al 2017). Overall, the result confirms that IRBM achieved its mission to provide taxpayers with better service in line with their effort in various programmes such as 'HASiL 4U 2016', 'HASiL Your Feel-Good Partner', and their current motto of 'The Best Service for You'.…”

Section: Multiple Regression Analysismentioning

confidence: 56%

“…According to Smith and Stalan (1991), respectful and responsive treatment provided by tax authority towards taxpayers was more effective to ensure long-lasting tax compliance. In addition, Farrar et al (2017) refer to the quality of interaction as…”

Section: Treatment Provided By Tax Authoritymentioning

confidence: 99%

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Does Compliance Strategy Increase Compliance? Evidence from Malaysia

2021

AJAG

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Due to the significance of tax revenue as the primary source of a country's income, any leakage due to non-compliance behaviour may impact the country, which will eventually affect citizens. One way to reduce tax non-compliance is through compliance strategies which can be categorised into two; deterrence and accommodative approach. It is advisable that tax authority should not only focus on the deterrent approach (tax audit and penalty), mainly on tax offenders. Instead, tax authority also needs to find ways to preserve good taxpayers' continuous fulfilment of their tax responsibilities, encourage future taxpayers to commit to tax laws, and transform tax offenders to become good taxpayers using the accommodative approach. This study uses the survey method to determine individual taxpayers' perception of tax authority's compliance strategies (threat of punishment, tax education programme, treatment provided by tax authority, special voluntary disclosure programme (SVDP)). This study then investigates the influence of those compliance strategies towards tax compliance behaviour. Our findings indicate that individual taxpayers have a positive perception towards compliance strategies provided by the tax authority in Malaysia (refer to Inland Revenue Board of Malaysia (IRBM)). In addition, the threat of punishment, treatment provided by IRBM and SVDP are significantly proven to have a positive relationship with tax compliance. However, it is suggested that IRBM should improve their tax education programmes as it is found to be insignificant. This study contributes to current tax compliance literature in a relatively important field of compliance strategies by providing comprehensive insights into the influence of both deterrence and accommodative apporaches in influencing tax compliance behaviour, as well as focusing more on an accommodative approach that is receiving attention lately. With both approaches in one study, the results of this study provide a clear, complete and comprehensive understanding since most of previous studies conducted separately. Finally, the findings of this study also provide valuable and significant input to the tax authorities and policymakers, especially IRBM in assessing and making a necessary improvement on their compliance strategies with the mission to enhance tax compliance behaviour, especially among individual taxpayers.

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Section: Multiple Regression Analysissupporting

confidence: 86%

Section: Treatment Provided By Tax Authoritysupporting

confidence: 85%

Section: Multiple Regression Analysismentioning

confidence: 56%

Section: Treatment Provided By Tax Authoritymentioning

confidence: 99%

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Does Compliance Strategy Increase Compliance? Evidence from Malaysia

2021

AJAG

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“…Psychologists and economists admit that the traditional research paradigm with an economic approach is incomplete [1]. Several studies have shown that taxpayers include non-economic considerations in decision making [9].…”

Section: Introductionmentioning

confidence: 99%

The Influence of Gender and Machiavellianism on Tax Evasion (A Study on Accounting Students)

Helmy¹,

Dwita²,

Cheisviyanny³

2021

Proceedings of the Sixth Padang International Conference on Economics Education, Economics, Business and Management, Accounting

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This study aims to examine the influence of gender and Machiavellianism on tax evasion. This research is a causative research focusing on the context of accounting students. The data for this study were collected by using electronic survey distributed to 151 accounting students at Faculty of Economics, Universitas Negeri Padang. Multiple regression was used to analyze the data. The findings of this study show that gender has significant influence on tax evasion among accounting students. In particular, men tend to demonstrate tax evasion than women. Furthermore, the finding shows Machiavellianism has no significant influence on tax evasion.

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