Factors that influence indirect tax collection fraud among Royal Malaysian Customs Department's (RMCD) officers: fraud diamond theory perspective / Raja Nasrul Idzhar Raja Ismail

Certain fraud cases have been reported to happen among Royal Malaysian Customs Department's officers. Due to these cases, it has tarnished the image and public trust towards Royal Malaysia Customs Department (RMCD). There are very limited resources of past studies on indirect tax collection fraud among Royal Malaysia Customs Department's officers. This study investigated the factors that influence indirect tax collection fraud among customs officers in RMCD, focusing on Customs Division (Malay: Bahagian Perkastaman) in RMCD Pulau Pinang. The study utilized primary data gathered from 110 customs officers of Customs Division in RMCD Pulau Pinang by using questionnaire-based survey. The data were analysed using descriptive analysis, correlation analysis and multiple regression. The result found that the elements mentioned in fraud diamond theory, which are rationalisation and capability, have significant positive relationship with indirect tax collection fraud. In contrast, this study found that the other two elements, which are pressure and opportunity, had no significant relationship with indirect tax collection fraud. The result shows different perspective of fraud diamond elements and indirect tax collection fraud towards RMCD, which allow future researchers to conduct more research on RMCD. The limitations of this study include the sufficiency data collected, the use Fraud Diamond Theory focus elements, the response rate and also the limited sources from past studies. Hence, the result of this study shall assist the government, policymaker and customs officers to enhance and strengthen the integrity policies to minimize the case of indirect tax collection fraud among officers in RMCD by considering other factors and moderator as well.