The Ethical Perception of Individual Taxpayers in the Southern Region of Peninsular Malaysia

Abstract

The past study showed that ethical issue had a significant impact on both ethical judgement and behavioral intention. Individuals with a high perception of the importance of ethical issue were less willing to act in the unethical manner. The objective of this study was to examine the role of gender in the relationship between tax service (TS) provided by government and social norms (SN) of individual taxpayers toward ethical perception (EP). The study received 127 usable responses from individual taxpayers in Johor, Melaka, and Negeri Sembilan. From the analysis, the results showed that there was significant relationship between TS provided by Inland Revenue Board (IRB) and EP of individual taxpayers. The result also indicated that the relationship between TS and EP was moderated by gender, male individual taxpayers. It showed that the online tax filing system, IRB employees services provided, and its physical environment have influenced on the taxpayers’ EP, especially the male individual taxpayers. However, the results reported that both SN and female taxpayers have no impact on individual taxpayers’ EP. Overall findings are expected to assist IRB in enhancing their policies and practices to increase the tax compliance among citizens.

Keywords: Tax Service; Social Norms; Gender; Ethical Perception

Australian Academy of Accounting and Finance Review, vol 3, issue 4, October 2017, pp 165-172