IDEAS home Printed from https://ideas.repec.org/a/bpj/ajlecn/v2y2011i3n5.html
   My bibliography  Save this article

Attitudes toward Tax Evasion: A Demographic Study of Malaysia

Author

Listed:
  • Ross Adriana M.

    (Florida International University)

  • McGee Robert W.

    (Florida International University)

Abstract

A number of studies have examined the relationship between tax collection and various demographic variables. However, until recently most of those studies have involved a United States sample population. The Internal Revenue Service provides demographic data for researchers on a regular basis. The present study goes beyond those studies in several important ways. For one, it uses data on Malaysia taken from the World Values database. Not much work has been done on the Malaysian tax or public finance system. Thus, the present study expands on the very limited research done on Malaysian public finance.The present study expands on existing literature in at least two other ways as well. For one, it examines how various demographics interact with attitudes toward tax evasion. Secondly, we examine several demographic variables that were not examined in prior studies.One of the questions in the World Values database asked whether it would be justifiable to cheat on taxes if it were possible to do so. Respondents were asked to choose a number from 1 to 10 to indicate the extent of their support for tax evasion. This study examines those responses, both overall and through the prism of more than 20 demographic variables. A comparison is made with other ethical issues to determine the relative seriousness of tax evasion.The study found that attitudes toward the justifiability of tax evasion often do vary by demographic variable. Tax evasion was found to be a less serious offense than homosexuality, prostitution, abortion, suicide, wife beating, accepting a bribe and euthanasia and more serious than divorce, avoiding a fare on public transport and claiming government benefits to which you are not entitled.Although the present study focuses on Malaysia, the methodology used in the present study could serve as a template for research on other countries or regions.

Suggested Citation

  • Ross Adriana M. & McGee Robert W., 2011. "Attitudes toward Tax Evasion: A Demographic Study of Malaysia," Asian Journal of Law and Economics, De Gruyter, vol. 2(3), pages 1-51, October.
    • Handle: RePEc:bpj:ajlecn:v:2:y:2011:i:3:n:5
    DOI: 10.2202/2154-4611.1028
    as

    Download full text from publisher

    File URL: https://doi.org/10.2202/2154-4611.1028
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.2202/2154-4611.1028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Robert W McGee, 2009. "Views Toward Tax Evasion: A Comparative Study of Moldova and Romania," The IUP Journal of Public Finance, IUP Publications, vol. 0(3 & 4), pages 7-24, August.
    2. Robert W. McGee, & Arsen M. Djatej, & Robert H. S. Sarikas,, 2012. "The Ethics Of Tax Evasion: A Survey Of Hispanic Opinion," Accounting & Taxation, The Institute for Business and Finance Research, vol. 4(1), pages 53-74.
    3. Benno Torgler & Neven T. Valev, 2010. "Gender And Public Attitudes Toward Corruption And Tax Evasion," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 554-568, October.
    4. Frey, Bruno S. & Torgler, Benno, 2007. "Tax morale and conditional cooperation," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 136-159, March.
    5. Frank A. Cowell, 1990. "Cheating the Government: The Economics of Evasion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262532484, April.
    6. Robert W. McGee & Radoslav Tusan, 2008. "The Ethics of Tax Evasion: A Survey of Slovak Opinion," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 31, pages 575-601, Springer.
    7. Benno Torgler, 2007. "The Impact of Direct Democracy and Local Autonomy on Tax Morale in Switzerland," Working Papers 06-2007, Institute of Local Public Finance.
    8. World Bank & International Finance Corporation & PwC, "undated". "Paying Taxes 2011," World Bank Publications - Reports 27457, The World Bank Group.
    9. Robert McGee, 2006. "Three Views on the Ethics of Tax Evasion," Journal of Business Ethics, Springer, vol. 67(1), pages 15-35, August.
    10. Benno Torgler & Friedrich Schneider, 2007. "What Shapes Attitudes Toward Paying Taxes? Evidence from Multicultural European Countries," Social Science Quarterly, Southwestern Social Science Association, vol. 88(2), pages 443-470, June.
    11. Robert W. McGee & Christopher Lingle, 2008. "The Ethics of Tax Evasion: A Survey of Guatemalan Opinion," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 25, pages 481-495, Springer.
    12. Robert W. McGee & Yuhua An, 2008. "A Survey of Chinese Business and Economics Students on the Ethics of Tax Evasion," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 21, pages 409-421, Springer.
    13. Benno Torgler, 2003. "Tax Morale in Transition Countries," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 357-381.
    14. Benno Torgler & Christoph A. Schaltegger, 2006. "Tax Morale: A Survey with a Special Focus on Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(III), pages 395-425, September.
    15. Irina Nasadyuk & Robert W. McGee, 2008. "The Ethics of Tax Evasion: An Empirical Study of Business and Economics Student Opinion in Ukraine," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 35, pages 639-661, Springer.
    16. Alm, James & Torgler, Benno, 2006. "Culture differences and tax morale in the United States and in Europe," Journal of Economic Psychology, Elsevier, vol. 27(2), pages 224-246, April.
    17. Benno Torgler & Friedrich Schneider, 2005. "Attitudes Towards Paying Taxes in Austria: An Empirical Analysis," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 32(2), pages 231-250, June.
    18. Torgler, Benno, 2006. "The importance of faith: Tax morale and religiosity," Journal of Economic Behavior & Organization, Elsevier, vol. 61(1), pages 81-109, September.
    19. Benno Torgler, 2003. "Beyond Punishment: a tax compliance experiment with taxpayers in Costa Rica," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 18(1), pages 27-56, June.
    20. Kirchler,Erich, 2007. "The Economic Psychology of Tax Behaviour," Cambridge Books, Cambridge University Press, number 9780521876742, September.
    21. Robert W. McGee & Galina G. Preobragenskaya, 2008. "A Study of Tax Evasion Ethics in Kazakhstan," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 26, pages 497-510, Springer.
    22. Wallschutzky, I. G., 1984. "Possible causes of tax evasion," Journal of Economic Psychology, Elsevier, vol. 5(4), pages 371-384, December.
    23. Torgler, Benno, 2003. "To evade taxes or not to evade: that is the question," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 32(3), pages 283-302, July.
    24. Robert W. McGee & Tatyana B. Maranjyan, 2008. "Opinions on Tax Evasion in Armenia," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 16, pages 277-307, Springer.
    25. Torgler, Benno & Demir, Ihsan C. & Macintyre, Alison & Schaffner, Markus, 2008. "Causes and Consequences of Tax Morale: An Empirical Investigation," Economic Analysis and Policy, Elsevier, vol. 38(2), pages 313-339, September.
    26. Robert W. McGee, 2008. "Trends in the Ethics of Tax Evasion: An Empirical Study of 10 Transition Economies," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 9, pages 119-136, Springer.
    27. Ali Reza Jalili, 2012. "The Ethics of Tax Evasion: An Islamic Perspective," Springer Books, in: Robert W. McGee (ed.), The Ethics of Tax Evasion, chapter 0, pages 167-199, Springer.
    28. Robert W. McGee & Galina G. Preobragenskaya, 2006. "Accounting and Financial Systems Reform in Eastern Europe and Asia," Springer Books, Springer, number 978-0-387-25710-5, December.
    29. Benno Torgler, 2006. "Compliance In India: An Empirical Analysis," The IUP Journal of Public Finance, IUP Publications, vol. 0(2), pages 7-18, May.
    30. Robert W. McGee, 2008. "Opinions on Tax Evasion in Asia," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 17, pages 309-320, Springer.
    31. Jorge Martinez-Vazquez & Benno Torgler, 2009. "The Evolution of Tax Morale in Modern Spain," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(1), pages 1-28.
    32. Benno Torgler & Jorge Martinez-Vazquez, 2005. "The Evolution of Tax Morale in Modern Spain (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0521, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    33. Benno Torgler, 2004. "Moral suasion: An alternative tax policy strategy? Evidence from a controlled field experiment in Switzerland," Economics of Governance, Springer, vol. 5(3), pages 235-253, November.
    34. Robert McGee & Simon Ho & Annie Li, 2008. "A Comparative Study on Perceived Ethics of Tax Evasion: Hong Kong Vs the United States," Journal of Business Ethics, Springer, vol. 77(2), pages 147-158, January.
    35. Robert W McGee, 2006. "The Ethics Of Tax Evasion: A Survey Of Romanian Business Students And Faculty," The IUP Journal of Public Finance, IUP Publications, vol. 0(2), pages 38-68, May.
    36. Robert W. McGee & Wendy Gelman, 2008. "Opinions on the Ethics of Tax Evasion: A Comparative Study of Ten Transition Economies," Springer Books, in: Robert W. McGee (ed.), Accounting Reform in Transition and Developing Economies, chapter 36, pages 495-508, Springer.
    37. Robert W. McGee & Jaan Alver & Lehte Alver, 2008. "The Ethics of Tax Evasion: A Survey of Estonian Opinion," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 24, pages 461-480, Springer.
    38. Benno Torgler & Neven T. Valev, 2006. "Women and Illegal Activities: Gender Differences and Women?s Willingness to Comply over Time," CREMA Working Paper Series 2006-15, Center for Research in Economics, Management and the Arts (CREMA).
    39. Robert W. McGee (ed.), 2008. "Taxation and Public Finance in Transition and Developing Economies," Springer Books, Springer, number 978-0-387-25712-9, December.
    40. Robert W. McGee & Marcelo J. Rossi, 2008. "A Survey of Argentina on the Ethics of Tax Evasion," Springer Books, in: Robert W. McGee (ed.), Taxation and Public Finance in Transition and Developing Economies, chapter 14, pages 239-261, Springer.
    41. Robert W. McGee (ed.), 2012. "The Ethics of Tax Evasion," Springer Books, Springer, number 978-1-4614-1287-8, December.
    42. Robert W McGee, 2007. "Ethics and Tax Evasion in Asia," The IUP Journal of Public Finance, IUP Publications, vol. 0(2), pages 21-33, May.
    43. Benno Torgler, 2004. "Moral Suasion: An alternative tax policy strategy? Evidence from a controlled field experiment in Switzerland," CREMA Working Paper Series 2004-01, Center for Research in Economics, Management and the Arts (CREMA).
    44. Groenland, Edward A. G. & van Veldhoven, Gery M., 1983. "Tax evasion behavior: A psychological framework," Journal of Economic Psychology, Elsevier, vol. 3(2), pages 129-144, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:arp:tjssrr:2019:p:76-86 is not listed on IDEAS
    2. Nur Quratun ‘Aini Haron* & Rina Fadhilah Ismail & Nurul Nadiah Ibrahim & Siti Aisyah Kamaruzaman & Siti Syaqilah Hambali, 2018. "Exploring the Influence of Demographic Characteristics of Malaysian Citizens Towards Tax Evasion," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 943-953:5.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    2. Gebhard Kirchgässner, 2011. "Tax Morale, Tax Evasion and the Shadow Economy," Chapters, in: Friedrich Schneider (ed.), Handbook on the Shadow Economy, chapter 10, Edward Elgar Publishing.
    3. Torgler, Benno, 2011. "Tax morale and compliance : review of evidence and case studies for Europe," Policy Research Working Paper Series 5922, The World Bank.
    4. Pickhardt, Michael & Prinz, Aloys, 2014. "Behavioral dynamics of tax evasion – A survey," Journal of Economic Psychology, Elsevier, vol. 40(C), pages 1-19.
    5. Gloria Alarcón García & José Daniel Buendía Azorín & María del Mar Sánchez de la Vega, 2018. "Tax Evasion in Europe: An Analysis Based on Spatial Dependence," Social Science Quarterly, Southwestern Social Science Association, vol. 99(1), pages 7-23, March.
    6. Robert W. McGee & Ken Devos & Serkan Benk, 2016. "Attitudes towards Tax Evasion in Turkey and Australia: A Comparative Study," Social Sciences, MDPI, vol. 5(1), pages 1-13, March.
    7. Rodriguez-Justicia, David & Theilen, Bernd, 2018. "Education and tax morale," Journal of Economic Psychology, Elsevier, vol. 64(C), pages 18-48.
    8. Tomasz Mickiewicz & Anna Rebmann & Arnis Sauka, 2019. "To Pay or Not to Pay? Business Owners’ Tax Morale: Testing a Neo-Institutional Framework in a Transition Environment," Journal of Business Ethics, Springer, vol. 157(1), pages 75-93, June.
    9. Khalil, Sandra & Sidani, Yusuf, 2020. "The influence of religiosity on tax evasion attitudes in Lebanon," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 40(C).
    10. Konstantinos Fotiadis & Prodromos Chatzoglou, 2022. "The tax morale of exhausted taxpayers. The case of Greece," Constitutional Political Economy, Springer, vol. 33(3), pages 354-377, September.
    11. Orkhan Nadirov & Khatai Aliyev & Bruce Dehning & Ilaha Sharifzada & Rafiga Aliyeva, 2021. "Life Satisfaction and Tax Morale in Azerbaijan: Mediating Role of Institutional Trust and Financial Satisfaction," Sustainability, MDPI, vol. 13(21), pages 1-10, November.
    12. Rajat Deb & Sourav Chakraborty, 2017. "Tax Perception and Tax Evasion," IIM Kozhikode Society & Management Review, , vol. 6(2), pages 174-185, July.
    13. James Alm & Benno Torgler, 2011. "Do Ethics Matter? Tax Compliance and Morality," Journal of Business Ethics, Springer, vol. 101(4), pages 635-651, July.
    14. Alessandro Cascavilla & Jordi Ripollés & Andrea Morone, 2024. "Tax morale and social capital: An empirical investigation among European citizens," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(2), pages 441-476, June.
    15. Colin C. Williams, 2014. "Confronting the Shadow Economy," Books, Edward Elgar Publishing, number 15370.
    16. MirHadi Hosseini Kondelaji & Majid Sameti & Hadi Amiri & Rozita Moayedfar, 2016. "Analyzing Determinants of Tax Morale Based on Social Psychology Theory: Case Study of Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 20(4), pages 579-595, Autumn.
    17. Fadi Alasfour, 2019. "Costs of Distrust: The Virtuous Cycle of Tax Compliance in Jordan," Journal of Business Ethics, Springer, vol. 155(1), pages 243-258, March.
    18. Philipp Doerrenberg & Andreas Peichl, 2013. "Progressive taxation and tax morale," Public Choice, Springer, vol. 155(3), pages 293-316, June.
    19. Belmonte, Alessandro & Dell'Anno, Roberto & Teobaldelli, Désirée, 2018. "Tax morale, aversion to ethnic diversity, and decentralization," European Journal of Political Economy, Elsevier, vol. 55(C), pages 204-223.
    20. Çule, Monika & Fulton, Murray, 2009. "Business culture and tax evasion: Why corruption and the unofficial economy can persist," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 811-822, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:ajlecn:v:2:y:2011:i:3:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.