Towards voluntary tax compliance: Understanding the impact of altruistic and egocentric orientation / Susan Hydra Sikayu … [et al.]

Sikayu, Susan Hydra and Gabriel Puem, Lucy Batchy and Jonathan, Lulu and Enggong, Tina Stephen (2020) Towards voluntary tax compliance: Understanding the impact of altruistic and egocentric orientation / Susan Hydra Sikayu … [et al.]. Journal of Emerging Economies & Islamic Research, 8 (1). pp. 1-12. ISSN 2289-2559

Abstract

Tax is one of the main sources of revenue for a country. Therefore, a sustainable contribution of tax revenue is crucial for a nation to prosper. Yet, the conundrum as to why taxpayers comply voluntarily, while, others resent from paying taxes is still unresolved. Hitherto, the conventional economic deterrent approach has failed to clearly explain this gap. Hence, the social psychology approach is explored in examining the taxpayers’ attitude. This study evaluates the taxpayers’ altruistic and egocentric oriented attitudes. Herein, these attitudes were examined for their corresponding relationship with taxpayers’ voluntary compliance. Survey questionnaires were distributed to the individual taxpayers of Malaysia using convenience sampling. Subsequently, 244 useable questionnaires were analyzed using SPSS and Smart PLS 3. The results revealed that the altruistic group was significantly happier and had a better attitude towards tax compliance. More importantly, altruistic orientation was significantly associated with taxpayers’ compliance. These findings highlighted the importance of imparting altruistic prosocial value within the education system and the society at large, in nurturing voluntary tax compliance.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Sikayu, Susan HydraUNSPECIFIED
Gabriel Puem, Lucy BatchyUNSPECIFIED
Jonathan, LuluUNSPECIFIED
Enggong, Tina StephenUNSPECIFIED
Subjects: H Social Sciences > HJ Public Finance > Revenue. Taxation. Internal revenue
H Social Sciences > HJ Public Finance > Revenue. Taxation. Internal revenue > Tax assessment
H Social Sciences > HJ Public Finance > Revenue. Taxation. Internal revenue > Income tax
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management
Journal or Publication Title: Journal of Emerging Economies & Islamic Research
Journal: UiTM Journal > Journal of Emerging Economies and Islamic Research
ISSN: 2289-2559
Volume: 8
Number: 1
Page Range: pp. 1-12
Item ID: 32088
Uncontrolled Keywords: Prosocial behavior, Voluntary tax compliance, Altruism, Happiness
URI: http://ir.uitm.edu.my/id/eprint/32088

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