The Influence of Tax Knowledge and Tax Complexity on Compliance Behavior Among Sole-Proprietors

Pengaruh Faktor Pengetahuan Cukai dan Kerumitan Sistem Cukai Terhadap Kepatuhan Cukai di Kalangan Pemilikan Tunggal

Authors

  • Nur Arina Inani Yahya KUIS
  • Noor Suhaila Shaharuddin KUIS
  • Noor Raudhiah Abu Bakar KUIS

Keywords:

Tax compliance, Tax Knowledge, Tax Complexity

Abstract

Tax noncompliance is widely believed as a major concern for all tax administration in almost all countries. This issue calls for serious attention as the problem of noncompliance will cause losses of current income to the government. Studies on tax compliance have found that the compliance levels of sole proprietor are likely to be considerably low compared to other groups of taxpayers. Despite having the least compliance level, little is known about their taxpaying behaviour towards tax compliance. Various factors influencing tax compliance have been discussed in a previous study, but tax knowledge and tax complexity were the most important determinant among sole proprietors. Thus, this study aims to examine taxpayers' views on their level of tax knowledge and perceived complexity of the income tax system. The data was collected through Google Form that were distributed to sole proprietors who run the small business activities. The results revealed that tax knowledge and tax complexity are viewed as contributing factors towards non-compliance behaviour among sole proprietors. The finding of this study may be of interest to revenue bodies for addressing tax compliance issues. In ensuring the success of the revenue process, the collaboration between the tax authority and tax researchers is important to further understand the taxpayers’ compliance behaviour.

Isu pematuhan cukai merupakan kebimbangan utama bagi semua pentadbir cukai hampir semua negara. Isu ini memerlukan perhatian yang serius kerana masalah ketidakpatuhan cukai akan mengakibatkan kerugian pada pendapatan negara. Kajian ke atas pematuhan cukai mendapati bahawa tahap pematuhan cukai di kalangan pemilikan tunggal adalah lebih rendah berbanding dengan pembayar-pembayar cukai yang lain. Walaupun mereka sering dikatakan mempunyai tahap pematuhan cukai yang rendah, namun sedikit sahaja kajian dilakukan tentang sikap terhadap tingkahlaku pematuhan cukai. Pelbagai faktor yang mempengaruhi pematuhan cukai telah dibahas dalam kajian sebelumnya, tetapi pengetahuan dan kerumitan cukai adalah penentu yang paling penting di kalangan pemilikan tunggal. Justeru kajian ini bertujuan menentukan pengaruh pengetahuan cukai dan tahap kerumitan cukai terhadap ketidakpatuhan cukai. Data kajian dikumpulkan melalui Google Form yang diedarkan kepada pemilik tunggal yang menjalankan aktiviti perniagaan secara kecil-kecilan. Hasil kajian menunjukkan bahawa pengetahuan dan kerumitan cukai dilihat sebagai faktor penyumbang terhadap tingkah laku ketidakpatuhan di kalangan pemilik tunggal. Dapatan kajian ini diharap dapat membantu pihak berkuasa dalam menangani isu ketidapatuhan cukai. Walaubagaimanapun, bagi memastikan proses pemungutan cukai berjalan dengan baik, pihak berkuasa percukaian dan penyelidik perlu bekerjasama untuk lebih memahami isu-isu pematuhan cukai.

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Published

2021-06-30

How to Cite

Yahya, N. A. I. ., Shaharuddin, N. S., & Abu Bakar, N. R. . (2021). The Influence of Tax Knowledge and Tax Complexity on Compliance Behavior Among Sole-Proprietors: Pengaruh Faktor Pengetahuan Cukai dan Kerumitan Sistem Cukai Terhadap Kepatuhan Cukai di Kalangan Pemilikan Tunggal. Journal of Management and Muamalah , 11(1), 71 - 81. Retrieved from https://jmm.kuis.edu.my/index.php/jurnal/article/view/100