Fairness, transparency and attitude towards tax evasion amongst owners of SMEs / Susan Hydra Sikayu ... [et.al.]

Sikayu, Susan Hydra and Rahmat, Mariam and Chan, Ai Nyet (2022) Fairness, transparency and attitude towards tax evasion amongst owners of SMEs / Susan Hydra Sikayu ... [et.al.]. International Journal of Service Management and Sustainability (IJSMS), 7 (1). pp. 185-206. ISSN 0128-3057

Abstract

Tax evasion amongst small and medium-sized enterprises (SMEs) is a global concern. While the social-psychological aspect has been explored,
its influence on tax evasion in SMEs is still inconclusive. This study examines the effect of fairness and transparency on the attitude towards tax
evasion amongst the owners of SMEs. A mixed-mode survey was used in obtaining data from four populous divisions of Sarawak, Malaysia. Random sampling was employed in selecting the potential respondents from the service sector. Data from 91 useable questionnaires were analysed using Smart-PLS 3.0. The results revealed that distributive fairness and distributive fiscal transparency have significant negative effects on SME owners’ attitudes towards tax evasion. On the other hand, general fairness and informational transparency were insignificant. These findings may benefit the tax authority and policymakers in formulating appropriate strategies to curb erosion of income tax revenue from tax evasion.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Sikayu, Susan Hydra
UNSPECIFIED
Rahmat, Mariam
UNSPECIFIED
Chan, Ai Nyet
UNSPECIFIED
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HJ Public Finance
H Social Sciences > HJ Public Finance > Tax collection. Taxpayer compliance
H Social Sciences > H Social Sciences (General) > Research
Divisions: Universiti Teknologi MARA, Sarawak
Journal or Publication Title: International Journal of Service Management and Sustainability (IJSMS)
UiTM Journal Collections: UiTM Journal > International Journal of Service Management and Sustainability (IJSMS)
ISSN: 0128-3057
Volume: 7
Number: 1
Page Range: pp. 185-206
Keywords: Fairness; Transparency; Tax Evasion; Attitude; SMEs
Date: March 2022
URI: https://ir.uitm.edu.my/id/eprint/58243
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