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An Analysis of Tax Audit Compliance Factors and Model

This research paper explores the underlying factor structure of a set of observed compliance variables. The purpose is to determine the significant factors in the multidimensional construct. The study was conducted with a sample of 250 service tax licence holders in Malaysia. Compliance data for the...

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Main Author: Saw, Sor-Tin
Format: Journal
Language:English
Published: 2019
Online Access:http://ur.aeu.edu.my/1033/1/10_APJABSS_2019_Bus_v5i1_102-115.pdf
http://ur.aeu.edu.my/1033/
https://apiar.org.au/wp-content/uploads/2019/01/10_APJABSS_2019_Bus_v5i1_102-115.pdf
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spelling my-aeu-eprints.10332022-12-08T02:00:26Z http://ur.aeu.edu.my/1033/ An Analysis of Tax Audit Compliance Factors and Model Saw, Sor-Tin This research paper explores the underlying factor structure of a set of observed compliance variables. The purpose is to determine the significant factors in the multidimensional construct. The study was conducted with a sample of 250 service tax licence holders in Malaysia. Compliance data for the three-year audit period are obtained from questionnaires, audit cases and a supporting database. Factor Analysis is conducted to examine the possible variables and validate the number of factors. The results obtained show there is inter-relationship or causal relations existing among the factors of taxpayer compliance; and that the Taxpayer Audit Compliance Construct (TACC) is a 4-factor structure. The Confirmatory Factor Analysis outcomes indicate that ten items load well onto four latent factors, represented by: (1) ‘deficiency claim level, audit outcome’; (2) ‘annual taxable sales, returns submission’; (3)‘penalty on return, number of offence type, nature of offence’; and (4) ‘licence period, auditing experience and age’. Finally the result of this path analysis is validated through the conceptual framework - adapted Fischer et al. (1992) Tax Compliance Model. The TACC Model provides a good fit to the data and can serve as a compliance audit checklist or tool to assist public and private sector organisations in managing risks. The study also contributes to knowledge on taxpayer audits and compliance. 2019 Journal PeerReviewed text en http://ur.aeu.edu.my/1033/1/10_APJABSS_2019_Bus_v5i1_102-115.pdf Saw, Sor-Tin (2019) An Analysis of Tax Audit Compliance Factors and Model. Asia Pacific Journal of Advanced Business and Social Studies, 5 (1). pp. 102-115. ISSN 2205-6033 https://apiar.org.au/wp-content/uploads/2019/01/10_APJABSS_2019_Bus_v5i1_102-115.pdf
institution Asia e University
building AEU Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Asia e University
content_source AEU University Repository
url_provider http://ur.aeu.edu.my/
language English
description This research paper explores the underlying factor structure of a set of observed compliance variables. The purpose is to determine the significant factors in the multidimensional construct. The study was conducted with a sample of 250 service tax licence holders in Malaysia. Compliance data for the three-year audit period are obtained from questionnaires, audit cases and a supporting database. Factor Analysis is conducted to examine the possible variables and validate the number of factors. The results obtained show there is inter-relationship or causal relations existing among the factors of taxpayer compliance; and that the Taxpayer Audit Compliance Construct (TACC) is a 4-factor structure. The Confirmatory Factor Analysis outcomes indicate that ten items load well onto four latent factors, represented by: (1) ‘deficiency claim level, audit outcome’; (2) ‘annual taxable sales, returns submission’; (3)‘penalty on return, number of offence type, nature of offence’; and (4) ‘licence period, auditing experience and age’. Finally the result of this path analysis is validated through the conceptual framework - adapted Fischer et al. (1992) Tax Compliance Model. The TACC Model provides a good fit to the data and can serve as a compliance audit checklist or tool to assist public and private sector organisations in managing risks. The study also contributes to knowledge on taxpayer audits and compliance.
format Journal
author Saw, Sor-Tin
spellingShingle Saw, Sor-Tin
An Analysis of Tax Audit Compliance Factors and Model
author_facet Saw, Sor-Tin
author_sort Saw, Sor-Tin
title An Analysis of Tax Audit Compliance Factors and Model
title_short An Analysis of Tax Audit Compliance Factors and Model
title_full An Analysis of Tax Audit Compliance Factors and Model
title_fullStr An Analysis of Tax Audit Compliance Factors and Model
title_full_unstemmed An Analysis of Tax Audit Compliance Factors and Model
title_sort analysis of tax audit compliance factors and model
publishDate 2019
url http://ur.aeu.edu.my/1033/1/10_APJABSS_2019_Bus_v5i1_102-115.pdf
http://ur.aeu.edu.my/1033/
https://apiar.org.au/wp-content/uploads/2019/01/10_APJABSS_2019_Bus_v5i1_102-115.pdf
_version_ 1752149862108889088
score 13.211869

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