Staff View: Cash economy: tax evasion among SMEs in Malaysia

Cash economy: tax evasion among SMEs in Malaysia

Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, usin...

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Main Authors:	Mohamad, Azhar, Zakaria, Mohd Hasrol, Hamid, Zarinah
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Ltd. 2016
Subjects:	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation
Online Access:	http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf http://irep.iium.edu.my/55059/ http://www.emeraldinsight.com/journal/jfc
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spelling	my.iium.irep.550592017-04-04T08:37:41Z http://irep.iium.edu.my/55059/ Cash economy: tax evasion among SMEs in Malaysia Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia. Findings – The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium). Originality/value – This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. Keywords Malaysia, SMEs, Tax evasion, Cash economy, Corporate income tax Emerald Group Publishing Ltd. 2016 Article REM application/pdf en http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf application/pdf en http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf Mohamad, Azhar and Zakaria, Mohd Hasrol and Hamid, Zarinah (2016) Cash economy: tax evasion among SMEs in Malaysia. Journal of Financial Crime, 23 (4). pp. 974-986. ISSN 1359-0790 http://www.emeraldinsight.com/journal/jfc 10.1108/JFC-05-2015-0025
institution	Universiti Islam Antarabangsa Malaysia
building	IIUM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	International Islamic University Malaysia
content_source	IIUM Repository (IREP)
url_provider	http://irep.iium.edu.my/
language	English English
topic	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation
spellingShingle	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah Cash economy: tax evasion among SMEs in Malaysia
description	Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia. Findings – The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium). Originality/value – This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. Keywords Malaysia, SMEs, Tax evasion, Cash economy, Corporate income tax
format	Article
author	Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah
author_facet	Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah
author_sort	Mohamad, Azhar
title	Cash economy: tax evasion among SMEs in Malaysia
title_short	Cash economy: tax evasion among SMEs in Malaysia
title_full	Cash economy: tax evasion among SMEs in Malaysia
title_fullStr	Cash economy: tax evasion among SMEs in Malaysia
title_full_unstemmed	Cash economy: tax evasion among SMEs in Malaysia
title_sort	cash economy: tax evasion among smes in malaysia
publisher	Emerald Group Publishing Ltd.
publishDate	2016
url	http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf http://irep.iium.edu.my/55059/ http://www.emeraldinsight.com/journal/jfc
_version_	1643614670576156672
score	13.211869

Cash economy: tax evasion among SMEs in Malaysia

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