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...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English English |
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Emerald Group Publishing Ltd.
2016
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| Subjects: | |
| Online Access: | 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 |
| _version_ | 1848784514636054528 |
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| author | Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah |
| author_facet | Mohamad, Azhar Zakaria, Mohd Hasrol Hamid, Zarinah |
| author_sort | Mohamad, Azhar |
| building | IIUM Repository |
| collection | Online Access |
| 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 |
| first_indexed | 2025-11-14T16:38:28Z |
| format | Article |
| id | iium-55059 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English |
| last_indexed | 2025-11-14T16:38:28Z |
| publishDate | 2016 |
| publisher | Emerald Group Publishing Ltd. |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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 |
| 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 |
| title | 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_short | Cash economy: tax evasion among SMEs in Malaysia |
| title_sort | cash economy: tax evasion among smes in malaysia |
| topic | HB522 Income. Factor shares.Interest.Profit.Entrepreneurship HJ2240 Revenue. Taxation |
| 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 |