Perceptions of Tax Fairness and Tax Compliance Behaviour: A Comparative Study
Persepsi Kesaksamaan dan Gelagat Pematuhan Cukai: Satu Kajian Perbandingan

School of Accountancy
College of Business
Universiti Utara Malaysia
Sintok, Kedah, Malaysia

natrah@uum.edu.my

Abstract

This cross-cultural study compares the perceptions of tax fairness of New Zealand and Malaysian individual taxpayers of their respective national income tax systems and investigates the consequences of those taxpayers’ perceptions of tax fairness, as well as other important variables, on their compliance behaviour. The hypotheses of the study were tested using the responses to a questionnaire survey. A t-test and Partial Least Squares analyses were used to analyse the survey data. The results suggest that Malaysian taxpayers have significantly better perceptions of fairness of their income tax systems than their New Zealand counterparts. However, New Zealand taxpayers were found to be more compliant regarding their tax responsibility. The most important factor in explaining taxpayers’ compliance behaviour between the two countries was the attitude of individuals towards compliance, followed by subjective norms. Perceptions of tax fairness, which were highly influenced by both tax knowledge and the perceived complexity of the tax system, was influential in explaining tax compliance.

Keywords

Land and Income Tax Assessment; Malaysian Tax System; New Zealand Tax System; Tax Complexity; Tax Compliance Behaviour; Tax Fairness

Citation

Saad, N. (2012). Perceptions of Tax Fairness and Tax Compliance Behaviour: A Comparative Study. Jurnal Pengurusan, 36, 89–100.

@article{saad2012perceptions,
  title={Perceptions of Tax Fairness and Tax Compliance Behaviour: A Comparative Study},
  author={Saad, Natrah},
  journal={Jurnal Pengurusan},
 

volume={36},
  number={},
  pages={89—100},
  year={2012},
  doi={},
  publisher={Penerbit UKM},
}

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36 (2012) 89 – 100

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