Tax compliance among shariah committee members at islamic financial institutions in Malaysia

This study explores the factors affecting tax compliance among Shariah Committee Members (SCMs) in Malaysia's Islamic Financial Institutions (IFIs), a specialized group of taxpayers with diverse income sources and religious obligations. Although SCMs hold professional positions, they exhibit varying levels of tax awareness, knowledge, and education. Through a qualitative methodology involving semi-structured telephone interviews and thematic analysis, the research identifies five main influences on tax compliance: tax education, tax knowledge, tax awareness, religiosity, and tax complexity. The findings indicate that limited access to formal tax education, confusion regarding submission deadlines, and frequent legal changes lead to inconsistent compliance. While religiosity promotes ethical motivations, differing interpretations of Islamic tax duties result in uncertainty for some SCMs. The study emphasizes the necessity for tax authorities, especially the Inland Revenue Board of Malaysia (IRBM), to enhance collaboration with Islamic organizations to clarify religious justifications for taxation. It also advocates for the integration of tax education into secondary and tertiary education, improved communication regarding penalties and deadlines, and the simplification of complex tax laws. This research contributes to theory by connecting religiosity with legal compliance in Islamic financial professions and offers practical suggestions for reforms to enhance voluntary compliance in Malaysia’s changing tax landscape