Factors affecting tax non-compliance behaviour of self-assessment system among enterprises’ taxpayers in Johor Bahru

This study aims to investigate the relationships between factors that influence tax noncompliance behaviours of enterprises’ taxpayers in Johor Bahru. A total of 320 taxpayers who have been audited by the Inland Revenue Board Malaysia (IRBM) Johor Bahru branch were chosen as sample, but only 176 responded to the questionnaire sent, making up of 55.00% response rate out of 320 respondants. This study examined six independent variables, namely attitude towards paying tax, subjective norms, perceived behavioural control (PBC), tax knowledge, poor record keeping of business source documents, and time cost in preparing accounts, financial statements and submitting tax forms in relation to tax non-compliance behaviour. Questionnaire is used as the instrument for this study to assess the relationships between the above factors and tax non-compliance behaviour among enterprise taxpayers in Johor Bahru. Primary data were analysed using statistical tool and presented quantitatively in the forms of percentages, tables, statistical figures to facilitate the interpretation of the results of the data. The outcome of this study reveals that only two hypotheses namely poor record-keeping and PBC are supported and have significant positive relationships with non-compliance behaviour while the rest of the factors namely attitude, subjective norm, tax knowledge and time cost are not supported and do not have significant relationships with tax non-compliance behaviour. As such, it can be said that taxpayers’ attitude leading to non-compliance behaviour is influenced by taxpayer’s positive or negative evaluation of PBC measures and internal conditions like poor recordkeeping. Future research in qualitative form may be able to provide deeper insights into this matter.