Tax Morale and Sales Tax Compliance Behaviour: Examining the Attitudinal Component of Planned Behaviour Theory
Abstract
Sales tax remains a key source of revenue under Malaysia’s self-assessment system, yet persistent noncompliance continues to challenge its effectiveness. While enforcement measures have been strengthened, they have not sufficiently addressed the behavioural drivers of compliance. This study examines the role of tax morale in influencing sales tax compliance behaviour among registered businesses, with intention to comply acting as a mediating variable within the Theory of Planned Behaviour (TPB) framework. Using survey data from 400 sales tax registrants and analysed through Partial Least Squares Structural Equation Modelling, the findings indicate that tax morale significantly influences both intention to comply and compliance behaviour, with intention partially mediating this relationship. The findings underscore the critical role of intrinsic motivation in enhancing sustainable voluntary compliance, providing important implications for behavioural-based tax policy design in self-assessment systems.
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References
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