IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v12y2022i3p21582440221127190.html
   My bibliography  Save this article

Tax Compliance Behavior Among Malaysian Taxpayers: A Dual-stage PLS-SEM and ANN Analysis

Author

Listed:
  • Naeem Hayat
  • Anas A. Salameh
  • Abdullah Al Mamun
  • Mohd Helmi Ali
  • Zafir Khan Mohamed Makhbul

Abstract

The tax system provides the necessary financial resources to a country’s administration to use the collected resources for the welfare of the general public and the development of general infrastructure. Therefore, compliance with the prevailing tax system is necessary for a country’s political and administrative system to survive. The current study aims to explore the intention to comply and the compliance behavior toward the tax system among Malaysian taxpayers. The data were collected using the survey method, and quantitative data were analyzed using the dual-stage methods of partial least squares structural equation modeling (PLS-SEM) and artificial neural network (ANN). The analysis results showed that the perceived fairness of the tax system, tax penalties, and tax awareness were significantly related to the intention to comply with the tax rules and regulations. Furthermore, the intention to comply with the tax system significantly influenced tax compliance behavior. The ANN analysis confirms that tax awareness, tax penalties, and fairness perception are the three most important factors influencing tax compliance. The tax authorities need to build the taxpayers’ confidence in the prevailing tax system and streamline the tax system to reduce tax complexity. Consequently, the taxpayers will start paying the correct and timely tax liabilities. The study’s limitations and future research avenues are documented at the end of this paper.

Suggested Citation

  • Naeem Hayat & Anas A. Salameh & Abdullah Al Mamun & Mohd Helmi Ali & Zafir Khan Mohamed Makhbul, 2022. "Tax Compliance Behavior Among Malaysian Taxpayers: A Dual-stage PLS-SEM and ANN Analysis," SAGE Open, , vol. 12(3), pages 21582440221, September.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:3:p:21582440221127190
    DOI: 10.1177/21582440221127190
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440221127190
    Download Restriction: no
    File URL: https://libkey.io/10.1177/21582440221127190?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Doreen Musimenta, 2020. "Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1812220-181, January.
    2. Aktaş Güzel, Sonnur & Özer, Gökhan & Özcan, Murat, 2019. "The effect of the variables of tax justice perception and trust in government on tax compliance: The case of Turkey," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 80-86.
    3. Naeem Hayat & Abdullah Al Mamun & Noorul Azwin Md Nasir & Ganeshsree Selvachandran & Noorshella Binti Che Nawi & Quek Shio Gai, 2020. "Predicting Sustainable Farm Performance—Using Hybrid Structural Equation Modelling with an Artificial Neural Network Approach," Land, MDPI, vol. 9(9), pages 1-37, August.
    4. Komlan Gbongli & Yongan Xu & Komi Mawugbe Amedjonekou, 2019. "Extended Technology Acceptance Model to Predict Mobile-Based Money Acceptance and Sustainability: A Multi-Analytical Structural Equation Modeling and Neural Network Approach," Sustainability, MDPI, vol. 11(13), pages 1-33, July.
    5. Nida Putri Rahmayanti & Sutrisno T. & Yeney Widya Prihatiningtias, 2020. "Effect of tax penalties, tax audit, and taxpayers awareness on corporate taxpayers compliance moderated by compliance intentions," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 118-124, March.
    6. Brockmann, Hilke & Genschel, Philipp & Seelkopf, Laura, 2016. "Happy taxation: increasing tax compliance through positive rewards?," Journal of Public Policy, Cambridge University Press, vol. 36(3), pages 381-406, September.
    7. Leong, Lai-Ying & Hew, Teck-Soon & Ooi, Keng-Boon & Chong, Alain Yee-Loong, 2020. "Predicting the antecedents of trust in social commerce – A hybrid structural equation modeling with neural network approach," Journal of Business Research, Elsevier, vol. 110(C), pages 24-40.
    8. Binh Tran‐Nam & Chris Evans, 2014. "Towards the Development of a Tax System Complexity Index," Fiscal Studies, Institute for Fiscal Studies, vol. 35, pages 341-370, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rui Bruno Santos, 2023. "A Bibliometric Analysis between Communication and Tax Compliance," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 321-334, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Albahri, A.S. & Alnoor, Alhamzah & Zaidan, A.A. & Albahri, O.S. & Hameed, Hamsa & Zaidan, B.B. & Peh, S.S. & Zain, A.B. & Siraj, S.B. & Alamoodi, A.H. & Yass, A.A., 2021. "Based on the multi-assessment model: Towards a new context of combining the artificial neural network and structural equation modelling: A review," Chaos, Solitons & Fractals, Elsevier, vol. 153(P1).
    2. Ebele Stella Nwokoye & Clement Izuchukwu Igbanugo & Chukwunonso Ekesiobi & Stephen Kelechi Dimnwobi, 2023. "Fiscal Incentives and Tax Compliance Behaviour in Industrial Clusters: A Survey of Clusters in South-east Nigeria," Journal of African Business, Taylor & Francis Journals, vol. 24(1), pages 147-166, January.
    3. Hiran, Kamal Kant & Dadhich, Manish, 2024. "Predicting the core determinants of cloud-edge computing adoption (CECA) for sustainable development in the higher education institutions of Africa: A high order SEM-ANN analytical approach," Technological Forecasting and Social Change, Elsevier, vol. 199(C).
    4. Neba Bhalla & Rakesh Kumar Sharma & Inderjit Kaur, 2023. "Effect of Goods and Service Tax System on Business Performance of Micro, Small and Medium Enterprises," SAGE Open, , vol. 13(2), pages 21582440231, June.
    5. Mustofa, Rochman Hadi & Pramudita, Dias Aziz & Atmono, Dwi & Priyankara, Rasika & Asmawan, Mochammad Chairil & Rahmattullah, Muhammad & Mudrikah, Saringatun & Pamungkas, Leonny Noviyana Sakti, 2022. "Exploring educational students acceptance of using movies as economics learning media: PLS-SEM analysis," International Review of Economics Education, Elsevier, vol. 39(C).
    6. James Alm & Antoine Malézieux, 2021. "40 years of tax evasion games: a meta-analysis," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 699-750, September.
    7. Alam, Mohammad Zahedul & Hu, Wang & Kaium, Md Abdul & Hoque, Md Rakibul & Alam, Mirza Mohammad Didarul, 2020. "Understanding the determinants of mHealth apps adoption in Bangladesh: A SEM-Neural network approach," Technology in Society, Elsevier, vol. 61(C).
    8. Wasef Mater & Nasim Matar & Omar A. Alismaiel & Moteeb A. Al Moteri & Ibrahim Youssef Al Youssef & Waleed Mugahed Al-Rahmi, 2021. "Factors influencing the intention behind mobile wallet adoption: perceptions of university students," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 9(1), pages 447-461, September.
    9. Carvalho, Carlos & Masini, Ricardo & Medeiros, Marcelo C., 2018. "ArCo: An artificial counterfactual approach for high-dimensional panel time-series data," Journal of Econometrics, Elsevier, vol. 207(2), pages 352-380.
    10. D’Attoma, John & Volintiru, Clara & Steinmo, Sven, 2017. "Willing to share? Tax compliance and gender in Europe and America," LSE Research Online Documents on Economics 89397, London School of Economics and Political Science, LSE Library.
    11. Cingl, Lubomír & Lichard, Tomáš & Miklánek, Tomáš, 2023. "Tax designation effects on compliance: An online experiment with taxpayers," Journal of Economic Behavior & Organization, Elsevier, vol. 214(C), pages 615-633.
    12. Lubomir Cingl & Tomas Lichard & Tomas Miklanek, 2022. "Mist Over a Meadow: Tax Designation Effects on Compliance," CERGE-EI Working Papers wp725, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    13. Juliana Norizan & Syukrina Alini Mat Ali & Mohd Fikri Ishak, 2023. "The Factors Affecting Consumer Purchase Intention through Social Commerce – A Concept Paper," Information Management and Business Review, AMH International, vol. 15(4), pages 381-386.
    14. Duan, Sophia Xiaoxia & Tay, Richard & Molla, Alemayehu & Deng, Hepu, 2022. "Predicting Mobility as a Service (MaaS) use for different trip categories: An artificial neural network analysis," Transportation Research Part A: Policy and Practice, Elsevier, vol. 166(C), pages 135-149.
    15. Sohn, Jeong Woong & Kim, Jin Ki, 2020. "Factors that influence purchase intentions in social commerce," Technology in Society, Elsevier, vol. 63(C).
    16. Hayat, Naeem & Salameh, Anas A. & Malik, Haider Ali & Yaacob, Mohd Rafi, 2022. "Exploring the adoption of wearable healthcare devices among the Pakistani adults with dual analysis techniques," Technology in Society, Elsevier, vol. 70(C).
    17. Alexander Libman & Janis N. Kluge, 2017. "Sticks or Carrots? Comparing Effectiveness of Government Shadow Economy Policies in Russia," Working Papers 364, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    18. Malik Ishtiaq Ahmed & Raza Muhammad Ali & Hadi Noor Ul & Khan Mahwish J. & Hameed Farhina, 2023. "Social commerce constructs and purchase intention on social commerce sites: investigating the role of affective and cognitive attitudes in managing digital marketing challenges," Management & Marketing, Sciendo, vol. 18(s1), pages 474-495, December.
    19. Samiji, Ally A. & Chegere, Martin J. & Ruhinduka, Remidius D., 2023. "The Effect of Carrot and Stick Measures in Fostering Taxpayer Compliance in Tanzania: Evidence from a Laboratory Experiment," African Journal of Economic Review, African Journal of Economic Review, vol. 11(5), December.
    20. Paul Carrillo & Edgar Castro & Carlos Scartascini, 2017. "Do Rewards Work?: Evidence from the Randomization of Public Works," IDB Publications (Working Papers) 98459, Inter-American Development Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:sagope:v:12:y:2022:i:3:p:21582440221127190. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.