Publication: Tax compliance behavior among high income individual taxpayers in Jordan : The moderating effect of trust and religiosity
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Date
2019-03
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Universiti Sains Islam Malaysia
Abstract
ax compliance is one of the most long-standing issues in the world which becomes a concern to many governments. In Jordan, the high-income individual taxpayers such as medical doctors, engineers and lawyers, who are expected to comply to the tax law due to their professional background, have low tax compliance rate. Examining the factors that influence them to comply with the law in Jordan is thus worthwhile to understand their tax compliance behaviour. Therefore, the purpose of this study is to investigate the factors that affect the tax compliance behaviour of high-income individual taxpayers in Jordan. This study extends the Theory of Planned Behaviour (TPB) with some selected variables namely moral intensity, religiosity, fairness and trust in government. The population of this study is the high-income individual taxpayers working as medical doctors, engineers and lawyers in Jordan. A stratified random sampling technique was used in this study. A total of 485 complete and usable responses were collected using a questionnaire survey. The data was analysed using Statistical Package for Social Science (SPSS) and Smart Partial Least Square (PLS). The findings showed that moral intensity is the most important predictor of behavioural intention followed by attitude, perceived behavioural control and subjective norms. The findings showed that complexity affected negatively the attitude toward tax law while fairness has a positive and significant effect on attitude toward tax law. The behavioural intention affected positively the tax compliance behaviour. In addition, the behavioural intention mediated partially the effect of perceived behavioural control on tax compliance behaviour. Religiosity moderated positively the effect of attitude on behavioural intention. Trust in government moderated also positively the effect of behavioural intemtion on tax compliance behaviour. Theoretical and practical implications of this study were also discussed in understanding the tax compliance behaviour of high-income individual taxpayers. Tax authorities are suggested to conduct a transparent procedure and increase the fairness and trust between tax authorities and taxpayers. The findings of this study are limited to high income individual taxpayers and investigated only the voluntary tax compliance behaviour in Jordan. Future studies are recommended replicate this study and focus on other respondents asa well as to investigate the compliance in other developing countries to compare the findings with the findings of this study.
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Keywords
Income tax -- Jordan -- Case studies, Structural Equation Modeling (SEM), Theory of Planned Bahaviour (TPB), Tax compliance
Citation
Murad Ali Ahmad Al-Zaqeba. (2019). Tax compliance behavior among high income individual taxpayers in Jordan : The moderating effect of trust and religiosity [Doctoral dissertation, Universiti Sains Islam Malaysia]. USIM Research Repository.