Cash economy: Tax evasion amongst SMEs in Malaysia
Tax evasion is a punishable financial crime which is particularly rampant in underground cash economies. In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia on the 2011 tax returns of SMEs, we examine the relationship between tax evasion and certain demographic...
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| Format: | Proceeding Paper |
| Language: | English |
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2017
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| Online Access: | http://irep.iium.edu.my/56622/ http://irep.iium.edu.my/56622/8/56622.pdf |
| _version_ | 1848784775816413184 |
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| author | Mohamad, Azhar |
| author_facet | Mohamad, Azhar |
| author_sort | Mohamad, Azhar |
| building | IIUM Repository |
| collection | Online Access |
| description | Tax evasion is a punishable financial crime which is particularly rampant in underground cash economies. In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia on the 2011 tax returns of SMEs, we examine the relationship between tax evasion and certain demographic factors such as location, (engagement of) tax agent, size and type of SME’s industry. We 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). This study gives insight that the Inland Revenue Board of Malaysia can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. |
| first_indexed | 2025-11-14T16:42:37Z |
| format | Proceeding Paper |
| id | iium-56622 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T16:42:37Z |
| publishDate | 2017 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-566222017-05-08T06:49:44Z http://irep.iium.edu.my/56622/ Cash economy: Tax evasion amongst SMEs in Malaysia Mohamad, Azhar HJ Public Finance HJ2240 Revenue. Taxation Tax evasion is a punishable financial crime which is particularly rampant in underground cash economies. In this study, using proprietary tax audit data from the Inland Revenue Board of Malaysia on the 2011 tax returns of SMEs, we examine the relationship between tax evasion and certain demographic factors such as location, (engagement of) tax agent, size and type of SME’s industry. We 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). This study gives insight that the Inland Revenue Board of Malaysia can use to aid its collection department in profiling SMEs that have a higher tendency to evade paying tax. 2017 Proceeding Paper NonPeerReviewed application/pdf en http://irep.iium.edu.my/56622/8/56622.pdf Mohamad, Azhar (2017) Cash economy: Tax evasion amongst SMEs in Malaysia. In: 8th International Conference on Financial Criminology (ICFC) 2017, 12th -13th April 2017, Putrajaya. (Unpublished) |
| spellingShingle | HJ Public Finance HJ2240 Revenue. Taxation Mohamad, Azhar Cash economy: Tax evasion amongst SMEs in Malaysia |
| title | Cash economy: Tax evasion amongst SMEs in Malaysia |
| title_full | Cash economy: Tax evasion amongst SMEs in Malaysia |
| title_fullStr | Cash economy: Tax evasion amongst SMEs in Malaysia |
| title_full_unstemmed | Cash economy: Tax evasion amongst SMEs in Malaysia |
| title_short | Cash economy: Tax evasion amongst SMEs in Malaysia |
| title_sort | cash economy: tax evasion amongst smes in malaysia |
| topic | HJ Public Finance HJ2240 Revenue. Taxation |
| url | http://irep.iium.edu.my/56622/ http://irep.iium.edu.my/56622/8/56622.pdf |