Revealing the Tax Compliance Behaviour among Residential Property owners.

Abstract

In Malaysia, local governments are facing a decline in the collection of residential property assessment taxes, primarily attributable to an increase in non-compliance among residential property owners. As these taxes constitute over half of the local government's revenue, understanding the factors influencing tax compliance is imperative.  This study examines the significant factors of tax compliance among residential property owners, including tax knowledge, awareness, morale, and penalties. Applying the theory of planned behaviour, this research investigates the behavioral patterns of residential property owners when fulfilling their residential property assessment tax obligations. Employing a quantitative approach, the questionnaires were distributed to residential property owners in Selangor, resulting in 108 valid responses. The findings reveal that tax awareness and morale significantly influence the willingness of residential property owners to pay residential property assessment taxes. However, no apparent relationship was found between tax compliance and knowledge. These results suggest that local government authorities to devise robust compliance enforcement strategies and actively engage with residential property owners to reinforce tax collection. The implications of this study are substantial for future researchers and academicians, as they elucidate consistent factors influencing tax compliance among residential property owners, aligning with prior research in the field. These insights emphasize the need for tailored strategies to address specific determinants of non-compliance, ensuring a more effective and sustainable approach to revenue collection for local governments.