Determinants of tax evasion among online retailers in Malaysia

• المؤلف الرئيسي: Daud, Roshida
• التنسيق: أطروحة
• اللغة: الإنجليزية; الإنجليزية; الإنجليزية
• منشور في: 2019
• الموضوعات: HJ4771.6 Income Tax. Tax Returns.
• الوصول للمادة أونلاين: https://etd.uum.edu.my/9636/1/s821416_01.pdf; https://etd.uum.edu.my/9636/2/s821416_02.pdf; https://etd.uum.edu.my/9636/3/s821416_references.docx

The rapid rise of online businesses with its estimated business value of RM93 billion in the year of 2018 has exacerbated the government’s revenue loss due to tax evasion. The online businesses defy the traditional way of selling and buying goods and services with unique business models and distinctive challenges in tracing the online transactions and consequently helping some businesses to evade tax. Given the importance of increasing the government’s revenue collection, this study attempts to examine (1) if there is a significant difference between tax evaders and taxpayers in terms of sales; (2) the associations between tax file type, business location, nature of business and tax evasion behaviour among online retailers in Malaysia; and (3) the relationships between sales, tax file type, business location, nature of business and tax evasion behaviour among online retailers in Malaysia. A total of 2,347 actual cases of online retailers were selected from the Inland Revenue Board of Malaysia (IRBM) database as a sample for this study. Using T-test, the study found that there is a weak significant different between tax evaders and taxpayers in terms of sales. Chi-square test results reveal that there are significant associations between nature of business, tax file type and tax evasion, but not for business location and tax evasion. Finally, Binary Logistic Regression results shows that there are significant relationships between sales, nature of business, tax file type and tax evasion whilst business location is irrelevant in influencing tax evasion. Implications arising of the study include suggestion for using Big Data Analytics to cast wider and more accurate net to filter potential tax evaders and more detailed study scrutinising Company tax file type involving the Research and Development Department of the IRBM.