Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia

Reducing tax evasion is vital mainly because an “enforced compliance” policy is costly and often very expensive (OECD, 2008). Many tax administrations put an enormous effort into combating tax evasion. Available evidence suggests that tax evasion has been found to be particularly acute in many deve...

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Main Authors:	Isa, Khadijah, Yussof, Salwa Hana, Zulkifli, Zukhaire, Mohdali, Raihana
Format:	Conference or Workshop Item
Language:	English English
Published:	Penerbit UMT, Universiti Malaysia Terengganu 2016
Subjects:	H Social Sciences (General) HF5387 Business ethics HJ2240 Revenue. Taxation
Online Access:	http://irep.iium.edu.my/54874/ http://irep.iium.edu.my/54874/12/54874.pdf http://irep.iium.edu.my/54874/13/54874-abstractbook.pdf

id	iium-54874
recordtype	eprints
spelling	iium-548742017-02-21T02:51:26Z http://irep.iium.edu.my/54874/ Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia Isa, Khadijah Yussof, Salwa Hana Zulkifli, Zukhaire Mohdali, Raihana H Social Sciences (General) HF5387 Business ethics HJ2240 Revenue. Taxation Reducing tax evasion is vital mainly because an “enforced compliance” policy is costly and often very expensive (OECD, 2008). Many tax administrations put an enormous effort into combating tax evasion. Available evidence suggests that tax evasion has been found to be particularly acute in many developing countries, including Malaysia. In the effort to reduce overall tax evasion, fairly and cost-effectively target tax audits by the tax authority are essential. This can be achieved should key business characteristics of tax evaders are identified. As suggested by previous studies, six variables had been examined to see whether they are associated with effective tax rate (ETR) of tax evader companies. The variables analysed are size, leverage, return on asset, capital intensity, inventory intensity and receivables. The study is using archival data from the Inland Revenue Board of Malaysia (IRBM), consists of 3,010 tax audited cases resolved by the Corporate Tax Branch of IRBM in 2012. Out of this number, 903 companies that were imposed with penalties of 45% or more are considered as the tax evaders. Findings from this study may assist the tax authority in developing strategies to reduce tax evasion. Consequently, a fairly and cost-effectively target tax audits can be accomplished. Penerbit UMT, Universiti Malaysia Terengganu 2016-08 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/54874/12/54874.pdf application/pdf en http://irep.iium.edu.my/54874/13/54874-abstractbook.pdf Isa, Khadijah and Yussof, Salwa Hana and Zulkifli, Zukhaire and Mohdali, Raihana (2016) Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia. In: 4th International Conference on Accounting, Business & Economics (ICABEC 2016), 28-30th August 2016, Kuala Terengganu, Terengganu.
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	H Social Sciences (General) HF5387 Business ethics HJ2240 Revenue. Taxation
spellingShingle	H Social Sciences (General) HF5387 Business ethics HJ2240 Revenue. Taxation Isa, Khadijah Yussof, Salwa Hana Zulkifli, Zukhaire Mohdali, Raihana Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia
description	Reducing tax evasion is vital mainly because an “enforced compliance” policy is costly and often very expensive (OECD, 2008). Many tax administrations put an enormous effort into combating tax evasion. Available evidence suggests that tax evasion has been found to be particularly acute in many developing countries, including Malaysia. In the effort to reduce overall tax evasion, fairly and cost-effectively target tax audits by the tax authority are essential. This can be achieved should key business characteristics of tax evaders are identified. As suggested by previous studies, six variables had been examined to see whether they are associated with effective tax rate (ETR) of tax evader companies. The variables analysed are size, leverage, return on asset, capital intensity, inventory intensity and receivables. The study is using archival data from the Inland Revenue Board of Malaysia (IRBM), consists of 3,010 tax audited cases resolved by the Corporate Tax Branch of IRBM in 2012. Out of this number, 903 companies that were imposed with penalties of 45% or more are considered as the tax evaders. Findings from this study may assist the tax authority in developing strategies to reduce tax evasion. Consequently, a fairly and cost-effectively target tax audits can be accomplished.
format	Conference or Workshop Item
author	Isa, Khadijah Yussof, Salwa Hana Zulkifli, Zukhaire Mohdali, Raihana
author_facet	Isa, Khadijah Yussof, Salwa Hana Zulkifli, Zukhaire Mohdali, Raihana
author_sort	Isa, Khadijah
title	Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia
title_short	Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia
title_full	Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia
title_fullStr	Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia
title_full_unstemmed	Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia
title_sort	determinants of corporate effective tax rate: the case of corporate tax evaders in malaysia
publisher	Penerbit UMT, Universiti Malaysia Terengganu
publishDate	2016
url	http://irep.iium.edu.my/54874/ http://irep.iium.edu.my/54874/12/54874.pdf http://irep.iium.edu.my/54874/13/54874-abstractbook.pdf
first_indexed	2023-09-18T21:17:35Z
last_indexed	2023-09-18T21:17:35Z
_version_	1777411665731518464

Determinants of corporate effective tax rate: The case of corporate tax evaders in Malaysia

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