Cash economy: tax evasion among SMEs in Malaysia

Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, usin...

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Main Authors:	Mohamad, Azhar, Zakaria, Mohd Hasrol, Hamid, Zarinah
Format:	Article
Language:	English English
Published:	Emerald Group Publishing Ltd. 2016
Subjects:	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation
Online Access:	http://irep.iium.edu.my/55059/ http://irep.iium.edu.my/55059/ http://irep.iium.edu.my/55059/ http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf

id	iium-55059
recordtype	eprints
spelling	iium-550592017-04-04T08:37:41Z http://irep.iium.edu.my/55059/ Cash economy: tax evasion among SMEs in Malaysia Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia. Findings – The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium). Originality/value – This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. Keywords Malaysia, SMEs, Tax evasion, Cash economy, Corporate income tax Emerald Group Publishing Ltd. 2016 Article PeerReviewed application/pdf en http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf application/pdf en http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf Mohamad, Azhar and Zakaria, Mohd Hasrol and Hamid, Zarinah (2016) Cash economy: tax evasion among SMEs in Malaysia. Journal of Financial Crime, 23 (4). pp. 974-986. ISSN 1359-0790 http://www.emeraldinsight.com/journal/jfc 10.1108/JFC-05-2015-0025
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation
spellingShingle	HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah Cash economy: tax evasion among SMEs in Malaysia
description	Purpose – The purpose of this study is to investigate the relationship between tax evasion and certain demographic factors such as location, engagement of tax agent, size and type of small- and medium-sized enterprises (SMEs) industry in Malaysia. Design/methodology/approach – In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia (IRBM) on the 2011 tax returns of SMEs, the authors run a multiple regression analysis to examine the impact of location, agent, type of industry, size of enterprise and type of tax evasion on SMEs’ tax evasion in Malaysia. Findings – The authors find that tax evasion among SMEs in Malaysia is the highest when the business is located in a suburban environment and has no tax agent. Tax evasion is also influenced by the size of the SME (micro or medium). Originality/value – This study gives insight that the IRBM can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. Keywords Malaysia, SMEs, Tax evasion, Cash economy, Corporate income tax
format	Article
author	Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah
author_facet	Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah
author_sort	Mohamad, Azhar
title	Cash economy: tax evasion among SMEs in Malaysia
title_short	Cash economy: tax evasion among SMEs in Malaysia
title_full	Cash economy: tax evasion among SMEs in Malaysia
title_fullStr	Cash economy: tax evasion among SMEs in Malaysia
title_full_unstemmed	Cash economy: tax evasion among SMEs in Malaysia
title_sort	cash economy: tax evasion among smes in malaysia
publisher	Emerald Group Publishing Ltd.
publishDate	2016
url	http://irep.iium.edu.my/55059/ http://irep.iium.edu.my/55059/ http://irep.iium.edu.my/55059/ http://irep.iium.edu.my/55059/1/Cash%20economy_%20tax%20evasion%20amongst%20SMEs%20in%20Malaysia.pdf http://irep.iium.edu.my/55059/7/55059_Cash%20economy_SCOPUS.pdf
first_indexed	2023-09-18T21:17:51Z
last_indexed	2023-09-18T21:17:51Z
_version_	1777411682244493312

Cash economy: tax evasion among SMEs in Malaysia

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