Tax Noncompliance of High Net-Worth Individuals (HNWIS) in Malaysia: Perspectives of Tax Professionals
Gelagat Ketidakpatuhan Cukai Individu Berpendapatan Tinggi di Malaysia: Perspektif Profesional Cukai

Tunku Puteri Intan Safinaz School of Accountancy
Universiti Utara Malaysia
06010 UUM Sintok, Kedah, MALAYSIA.

natrah@uum.edu.my

Department of Taxation
Faculty of Management Sciences
Federal University Dutse
Jigawa State, NIGERIA.

masudabdussalam@yahoo.com

Research Department
Inland Revenue Board Malaysia
Persiaran Rimba Permai, Cyber 8
63000 Cyberjaya, Selangor, MALAYSIA.

maqbal@hasil.gov.my

Abstract

Documented evidence has shown that a significant number of high net-worth individuals (HNWIs) whose contribution accounted for more than 11% of personal income tax collections has been caught in tax malfeasance over the period of 2009-2013 through Inland Revenue Board of Malaysia (IRBM) tax audits. Notwithstanding this, very few attempts were made to understand the noncompliance behaviour of this group of taxpayers. Therefore, this article examines the influence of probability of detection, perceived severity of punishment, political affiliation, role of tax professionals, conditional cooperation, and vertical fairness on HNWIs’ noncompliance behaviour. For this purpose, a survey was conducted on tax professionals who had been dealing with HNWIs on their tax matters. Regression analysis through Partial Least Square reveals that the probability of detection, political affiliation and role of tax professionals have a significant influence on tax noncompliance behaviour among HNWIs. It is expected that the results will be of immense benefit to IRBM in understanding the perceived determinants of HNWIs tax noncompliance in Malaysia to formulate relevant strategies.

Keywords

HNWIs; noncompliance; political affiliation; probability of detection; severity of punishment
https://doi.org/10.17576/pengurusan-2021-63-07

Citation

Saad, N., Mas’ud, A., & Mashadi, M. A. (2021). Tax Noncompliance of High Net-Worth Individuals (HNWIS) in Malaysia: Perspectives of Tax Professionals. Jurnal Pengurusan, 63, 85–98. https://doi.org/10.17576/pengurusan-2021-63-07

@article{saad2021tax,
  title={Tax Noncompliance of High Net-Worth Individuals (HNWIS) in Malaysia: Perspectives of Tax Professionals},
  author={Saad, Natrah and Mas’ud, Abdulsalam and Mashadi, Muhammad Aqbal},
  journal={Jurnal Pengurusan},
 

volume={63},
  number={},
  pages={85—98},
  year={2021},
  doi={https://doi.org/10.17576/pengurusan-2021-63-07},
  publisher={Penerbit UKM},
}

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63 (2021) 85 – 98

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