Trust in Government and Corruption Control as Determinants of Individual Income Tax Compliance in Malaysia
List of Authors
  • Mohamad Ikmal Jafari, Nazirah Aziz, Nor Azrina Mohd Yusof

Keyword
  • Trust in government, Corruption control, Tax compliance, Malaysia

Abstract
  • Non-compliance with tax legislation poses a significant challenge to government revenue generation, particularly in developing countries. Ensuring adherence to tax laws is crucial for sustaining public services, infrastructure, and social welfare programs. This study investigates the influence of governmental trust, income levels, and corruption control on individual income tax compliance in Malaysia. Focusing on taxpayers residing or working in Kuala Lumpur, Selangor, and Putrajaya as these regions characterized by higher household incomes and diverse employment opportunities; a cross-sectional survey design was employed. Data were collected from 122 respondents across formal and informal sectors using a structured questionnaire with a six-point Likert scale. Random sampling ensured demographic representation. The analysis utilized Ordinary Least Squares (OLS) regression, Analysis of Variance (ANOVA), and Multiple Regression Analysis to test the hypothesized relationships. The findings reveal that both trust in government and the effectiveness of corruption control are significant predictors of tax compliance. These results highlight the critical role of transparent governance, public accountability, and anti-corruption measures in fostering voluntary tax compliance. In contrast, income level was found to have no significant effect on compliance behavior, suggesting that institutional and governance-related factors outweigh socio-economic considerations. The study underscores the need for policy interventions aimed at strengthening public trust and curbing corruption to enhance tax compliance and ensure sustainable government financing.

Reference
  • No References Recorded