The Mediating Role of Perception of Taxation and Tax Agent: Determinants and Smes‘ Indirect Taxation Compliance Behavior in Malaysia
Indirect taxation compliance behavior of Small and Medium Enterprises (SMEs) surprisingly has received little attention in Malaysia. This study integrates the social-psychological and deterrence-related key drivers of tax compliance to investigate the small and medium enterprises’ (SMEs) indirect tax compliance in Malaysia. In particular, the study empiricallyexamining the mediating role of the tax agent and SMEs’ owner managers’ perception of taxation in the compliance behaviour framework for SMEs in Malaysia as well as the selected determinants as key drivers of SMEs’ indirect tax compliance behaviour.In the approach of integrating the economic deterrence and social psychological drivers and testing the proposed mediated model in a developing country like Malaysia contributes to developing literature on indirect tax compliance behavior among SMEs that is more ecologically valid.This study applies quantitative research method whereby a survey will be conducted on selected SMEs in Malaysia. Partial Least squares Structural Equation Modeling(PLS-SEM) using SmartPLS 3.0, a path modeling technique will be used to analyze the survey data.
Index Terms - Tax compliance, Small and Medium Enterprises compliance behavior, Determinants of tax compliance.