THE TAX EVASION AND
COMPLIANCE: AN EXPLORATORY
STUDY ON MALAYSIAN TAX PAYERS
GHOLAMZERA ZANDI, FARIA RABBI
INTERNATIONAL JOURNAL OF
SOCIAL SCIENCE AND HUMANITIES
(2015)
PRESENT BY NOOR SYAHIDATUL FATIMY
BT NORDIN (829383)
OBJECTIVES OF THE
STUDY
• To investigate the factors • To explore the role of education,
influencing tax compliance gender, age, and religion in
and evasion among Malaysian shaping taxpayers' behavior
taxpayers. towards compliance.
SIGNIFICANCE OF THE
STUDY
Economic Importance Demographic Insights
Understanding compliance The study identifies how
behaviors helps authorities to tax behavior varies across
ensure sustainable economic age, gender, and religious
growth beliefs.
Policymaking
Education & Awareness
assist policymakers in
developing targeted tax the study suggests that
policies that reduce non- awareness campaigns could
compliance and improve tax improve tax compliance.
collection efficiency.
RESEARCH GAP
Previous research primarily
Lack of focus on how
focused on the technical
demographic variables and
aspects of tax compliance.
psychological factors influence
(eg: penalties, tax audits and
tax compliance behavior.
enforcement policies)
LITERATURE REVIEW
01 02
Education and Tax Compliance Gender and Tax Evasion
• Some studies suggest that higher education • Studies indicate that women are generally
leads to better compliance as educated more tax-compliant than men, possibly
individuals understand the importance of due to ethical considerations.
taxes.
• Others
• Some research shows that men are more
argue that highly educated
individuals may exploit tax loopholes, leading risk-tolerant and therefore more likely to
to higher non-compliance. engage in tax evasion.
• Research indicates that those with moderate
education levels are the most likely to
comply with tax laws.
LITERATURE REVIEW
03 04
Age and Tax Behavior Religion and Tax Compliance
• Older individuals tend to be more compliant, • Religiosity is often associated with higher
possibly due to increased financial stability moral responsibility, leading to greater tax
and ethical maturity. compliance.
• Younger taxpayers may lack awareness or be
• Some studies show that deeply religious
more inclined to take risks, leading to higher
evasion rates. individuals view tax evasion as unethical.
• The effect of age on tax compliance is • Relationship between religiosity and tax
complex and depends on additional social compliance is not always straightforward
and economic factors. and may depend on other factors like
government trust and fairness.
METHODOLO
GY
DATA COLLECTION SAMPLE SELECTION
Quantitative and
Questionnaires individuals from different
comparative
targeting Malaysian age groups, education
analysis
taxpayers levels, and religious
backgrounds.
Education and Tax Compliance Gender Differences
• Individuals with moderate levels of education • Women are more compliant than men,
are less likely to evade taxes compared to though the difference is not statistically
those with lower or higher education. significant in some studies.
• Some highly educated taxpayers may have • Men are more likely to justify tax evasion
better knowledge of legal loopholes, due to risk tolerance and financial
increasing their ability to avoid taxes. motivations.
FINDINGS AND
Role of Religion
DISCUSSION Age and Compliance
• Religious individuals are generally less likely • Older taxpayers show higher
to engage in tax evasion. compliance rates.
• Taxpayers who regularly attend religious • Younger individuals tend to be more
services report higher compliance levels. non-compliant due to financial
pressures and lack of awareness.
• However, some studies suggest that religion
alone is not enough—trust in government
also plays a role.
CONCLUSIO FUTURE
N
• The study reinforces the idea
that tax compliance is not just RESEARCH
• Conducting similar studies in other
countries to compare results across
different cultures.
an economic decision but also
infl uenced by psychological • Exploring the impact of digitalization
and social factors. and automation on tax compliance.
• Examining how trust in government
• Policymakers should consider and perceived fairness of tax
demographic variables when systems influence tax behavior.
designing tax policies and
compliance strategies.
• Public education campaigns
and ethical training could
enhance voluntary
compliance.
CRITICAL ANALYSIS
STRENGTHS WEAKNESSES
• Multidisciplinary Approach • Lack of Methodological Details
Integrates psychology, economics, and Not provide a clear explanation of sample
sociology into tax compliance research. size, data sources, or statistical methods
used.
• Practical Implications
Offers policy recommendations that can • Limited Scope
be applied to real-world tax systems. Findings are based on Malaysian
taxpayers, which may limit
• Focus on Behavioral Factors generalizability to other countries.
Goes beyond traditional enforcement-based
tax research. • Potential Bias in Self-Reported Data
If surveys were used, respondents might
have provided socially desirable answers.
CRITICAL ANALYSIS
SUGGESTIONS
• Conduct larger-scale, cross-country studies to see if findings are
consistent across different tax environments.
• Include qualitative methods such as interviews to gain deeper
insights into taxpayer motivations.
• Improve data collection transparency, specifying sample size,
data sources, and statistical techniques.
THANK
YOU VERY
MUCH