Employers’ profiles in cases of tax non-compliance towards their employees’ monthly tax deduction rules at The Inland Revenue Board, Jalan Duta Branch / Susan Sapidin

The purpose of this applied research is primarily to help the MTD Audit Unit in Cawangan Jalan Duta in understanding the employers that likely tend to not comply with the MTD Rules. In preparation for Malaysia to practice the MTD as a final tax, the effectiveness of this approach will only could be achieved if the employer complies with Rules MTD correctly. Therefore, a great responsibility carried by the IRB to ensure that employers fulfil their responsibilities accordingly. This also includes the responsibility to educate employers on the practicalities of making the MTD as a final tax with effective in 2015. Therefore, this study is the researcher’s attempt to determine the employer’s profile based on several business and directors’ gender and ethnicity factors towards their decision not to comply with the MTD Rules. The results of the research shows that the small and medium size business which directed by male and Chinese directors are the highest profile of employers who are more likely not to comply with the MTD Rules. The findings suggest that kind of business should be concentrated focus during the case selection for MTD audit.