Governance Quality and Tax Compliance Behaviour in East Malaysia

Authors

  • Mohd Allif Anwar Abu Bakar
  • Mohd Rizal Palil
  • Ruhanita Maelah

Abstract

ABSTRACTIn this paper, we examine the relationship and links between the governance quality and tax compliance behaviour across taxpayers in East Malaysia otherwise known as Borneo. The hypotheses were tested using structural equation modelling of partial least squares. Four proxies of governance quality were examined in the study, namely, Voice and Accountability (VA), Political Stability (PS), Government Effectiveness (GE), and Rule of Law (RL). Results indicate that only political stability and rule of law are found to significantly influence tax compliance behaviour positively, while the other two proxies of voice and accountability and government effectiveness showed otherwise with insignificant findings. The current finding suggests that the government should maintain stability in the political system and promote a stringent with the effective rule of law to encourage substantial participation in tax compliance behaviour.Keywords: Governance quality; tax compliance; taxpayers; East Malaysia

Downloads

Published

2021-04-30

Issue

Vol. 15 (2021): ASIAN JOURNAL OF ACCOUNTING AND GOVERNANCE

Section

Articles

License

Authors who publish with this journal agree to the following terms:
  1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).