The Influence of Normative Beliefs on Tax-Payers Attitude and Voluntary Tax Compliance Intention
DOI:
https://doi.org/10.52962/ipjaf.2020.4.1.96Keywords:
Voluntary Tax Compliance, Theory of Reasoned Action (TRA)Abstract
As technology advances, individuals will utilise the gadgets in their daily processes. However, individuals may still require views from their peers and other people surrounding in making decisions. The views formed would affect the individual’s attitude towards their actions. This study was administered to understand the influence of normative belief on taxpayers’ attitude towards voluntary tax compliance intention using the Theory of Reasoned Action (TRA). A total of 311 responses were obtained from the survey conducted remotely online, which was analysed using Smart PLS 3.0 software. The attitude (ATT) construct was decomposed into several dimensions of general tax filing knowledge, compatibility, perceived ease of use, perceived usefulness, and subjective norm. Interestingly, the study found that normative belief, which was measured using the dimension of the subjective norm, has a significant influence on attitude. Similarly, it was found that general tax filing knowledge does significantly influence attitude. However, the dimensions of compatibility, perceived ease of use, and perceived usefulness were found to be insignificant. In conclusion, the study recognises that technologies play an essential role in individuals’ attitude on tax compliance. Nevertheless, the views of peers and tax knowledge do have an impact on taxpayers regardless of the compatibility and usefulness of the systems when it comes to the voluntary tax compliance intention.
Downloads
References
Ajzen, I. (1985). From Intentions to Actions: A Theory of Planned Behavior. In Action Control (pp. 11–39). Springer-Verlag Berlin Heidelberg.
Ajzen, I. (1991). The Theory of Planned Behavior. Organisational Behavior and Human Decision Processes, 50, 179–211.
Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Englewood Cliffs, NJ: Prentice-Hall.
Apostolou, B., Dorminey, J. W., & Schaupp, L. C. (2016). Trust in Tax Software as an Antecedent to Intention to E-File. Journal of Forensic & Investigative Accounting, 8(2), 241–256.
Chen, C.-W. (2010). Impact of quality antecedents on taxpayer satisfaction with online tax-filing systems—An empirical study. Information & Management, 47(5–6), 308–315. https://doi.org/10.1016/j.im.2010.06.005
Eckhardt, A., Laumer, S., & Weitzel, T. (2009). Who influences whom? Analysing workplace referents’ social influence on IT adoption and non-adoption. Journal of Information Technology, 24(1), 11–24. https://doi.org/10.1057/jit.2008.31
Fishbein, M., & Ajzen, I. (1975). Belief, Attitude, Intention, and Behavior. An Introduction to Theory and Research. Reading, Massachusetts: Addison-Wesley Publishing Company.
Hair, J. F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed, a Silver Bullet. Journal of Marketing Theory and Practice, 19(2), 139–152. https://doi.org/10.2753/MTP1069-6679190202
Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128
Hair, Jr, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2016). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (2nd ed.). London: SAGE Publications, Inc.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Henseler, J., Ringle, C. M., & Sinkovics, R. R. (2009). The use of partial least squares path modeling in international marketing. Advances in International Marketing, 20(2009), 277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014
Inland Revenue Board of Malaysia. (2005). Annual Report, 2004. Kuala Lumpur.
Inland Revenue Board of Malaysia. (2011). Annual Report, 2010. Kuala Lumpur.
Kasipillai, J., & Mohd Hanefah, M. (2000). Tax Professionals’ Views On Self Assessment System. Analysis, 7(1 & 2), 107–122.
Lymer, A., Hansford, A., & Pilkington, K. (2012). Developments in tax e-filing: practical views from the coalface. Journal of Applied Accounting Research, 13(3), 212–225. https://doi.org/10.1108/09675421211281290
Mackinnon, D. P., Lockwood, C. M., & Williams, J. (2004). Confidence Limits for the Indirect Effect: Distribution of the Product and Resampling Methods. Multivariate Behavioral Research, 39(1), 99–128. https://doi.org/10.1207/s15327906mbr3901
Madden, T. J., Ellen, P. S., & Ajzen, I. (1992). A Comparison of the Theory of Planned Behavior and the Theory of Reasoned Action. Personality and Social Psychology Bulletin, 18(1), 3–9. https://doi.org/10.1177/0146167292181001
Palil, M. R., & Mustapha, A. F. (2011). Factors affecting tax compliance behaviour in the self assessment system. African Journal of Business Management, 5(33), 12864–12872. https://doi.org/10.5897/AJBM11.1742
Rasoolimanesh, S. M., Roldán, J. L., Jaafar, M., & Ramayah, T. (2016). Factors Influencing Residents’ Perceptions toward Tourism Development: Differences across Rural and Urban World Heritage Sites. Journal of Travel Research, 56(6), 760–775. https://doi.org/10.1177/0047287516662354
Schiffman, L., & Kanuk, L. (2010). Consumer Behaviour (10th ed.). UK: Prentice-Hall.
Sheppard, B. H., Hartwick, J., & Warshaw, P. R. (1988). The Theory of Reasoned Action: A Meta-Analysis of Past Research with Recommendations for Modifications and Future Research. Journal of Consumer Research, 15(3), 325–343. https://doi.org/10.1086/209170
Trivedi, V. U., Shehata, M., & Lynn, B. (2003). Impact of Personal and Situational Factors on Taxpayer Compliance: An Experimental Analysis. Journal of Business Ethics, 47(3), 175–197. https://doi.org/10.1023/A:1026294332606
Voorhees, C. M., Brady, M. K., Calantone, R., & Ramirez, E. (2016). Discriminant validity testing in marketing: an analysis, causes for concern, and proposed remedies. Journal of the Academy of Marketing Science, 44(1), 119–134. https://doi.org/10.1007/s11747-015-0455-4
Downloads
Published
Issue
Section
License
Copyright (c) 2020 Indian-Pacific Journal of Accounting and Finance
This work is licensed under a Creative Commons Attribution 4.0 International License.
Site users
Copyright of all articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) belongs to their respective authors. Site users are permitted to download and print the articles for personal use. Further reproduction and/or distribution is not permitted, except for brief excerpts or quotations intended for inclusion in some other original works. In this case, proper attribution must be made to the author/copyright holder, and the place of publication must be acknowledged. Altering, editing or otherwise modifying the content of information obtained from the Indian Pacific Journal of Accounting and Finance (IPJAF) is a breach of copyright.
Authors
While you retain the copyright of your original material, by publishing in the Indian Pacific Journal of Accounting and Finance (IPJAF) , you will have agreed to the following contractual terms:
- The article is the original work of the stated author(s).
- The work has not been published previously.
- If the Article contains copyright material owned by others, written permission has been obtained from the copyright owner(s) to republish such material in any print or electronic medium and that you have included appropriate acknowledgement of such rights in the Article.
- The author agrees to grant a non-exclusive license to the Indian Pacific Journal of Accounting and Finance (IPJAF) to communicate the work to the public.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may use the article for publicity purposes.
- The Indian Pacific Journal of Accounting and Finance (IPJAF) may publish the article on third-party sites.
- Any subsequent publication of the article by the authors will carry the acknowledgement: First published in the Indian Pacific Journal of Accounting and Finance (IPJAF) [http://ipjaf.omjpalpha.com]
Disclaimer
The Indian Pacific Journal of Accounting and Finance (IPJAF) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Indian Pacific Journal of Accounting and Finance (IPJAF) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.