Factors Influencing Intention to Comply with Local Sales Tax in Malaysia

13 Pages Posted: 21 Jun 2011

See all articles by Zainol Bidin

Zainol Bidin

affiliation not provided to SSRN

Faridahwati Mohd Shamsudin

Othman Yeop Abdullah Graduate School of Business

Mohd Salleh Shalihen

affiliation not provided to SSRN

Othman Mohd Zainudin

affiliation not provided to SSRN

Date Written: June 20, 2011

Abstract

Previous literatures indicate a number of variables that could possibly influence tax compliance behavior especially with respect to direct taxes. However, the variable behavioral intention was not widely considered when it is argued to be the main antecedent of behavioral compliance. Hence, the present study was conducted to identify the variables that could influence behavioral intention to comply with local sales tax, i.e. one of the many different types of indirect taxes. Toward this purpose, theory of planned behavior was used as the basis for the research. Three-hundred and thirty eight local sales tax agents in Malaysia participated in the research. Multiple regressions were employed to examine the relationship between attitude, subjective norm, and perceived behavioral control, on behavioral intention to comply with local sales tax. Results showed that attitude, primary and secondary subjective norms, and ethics are significantly and positively related to behavioral intention. All these independent variables were able to explain 64% variance in behavioral intention to comply with local sales tax. Implications and recommendations for policy makers are discussed.

Keywords: Attitude, Subjective norms, Ethics, Intention, Local sales tax

Suggested Citation

Bidin, Zainol and Shamsudin, Faridahwati Mohd and Shalihen, Mohd Salleh and Mohd Zainudin, Othman, Factors Influencing Intention to Comply with Local Sales Tax in Malaysia (June 20, 2011). Society of Interdisciplinary Business Research (SIBR) 2011 Conference on Interdisciplinary Business Research, Available at SSRN: https://ssrn.com/abstract=1867923 or http://dx.doi.org/10.2139/ssrn.1867923

Zainol Bidin (Contact Author)

affiliation not provided to SSRN ( email )

Faridahwati Mohd Shamsudin

Othman Yeop Abdullah Graduate School of Business ( email )

Universiti Utara Malaysia
Sintok, Kedah 06010
Malaysia

Mohd Salleh Shalihen

affiliation not provided to SSRN

Othman Mohd Zainudin

affiliation not provided to SSRN

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