This study aims to examine the mediating effect of trust in authority on the relationship between tax audit, tax penalty and enforced tax compliance among e-Commerce business taxpayers in Malaysia. This study posited tax audit, tax penalty, and trust in authority, as determinants to e-Commerce enforced tax compliance. The study also proposed the mediating influent of trust in authority on the relationships between tax audit, tax penalty, and e-commerce-enforced tax compliance. A self-administered questionnaire was distributed to 339 e-Commerce business taxpayers as respondents. The results revealed a significant and positive relationship between tax penalty and e-commerce enforced compliance. On the other hand, tax audit has an insignificant direct relation with e-commerce enforced compliance, but has a significant relationship with mediating effect of trust in authority, indicating that there is a full mediation effect between the relationship. The findings of this study showed how trust in authority can impact enforced tax compliance among e-Commerce business taxpayers. The result of this study would facilitate the stakeholders such as tax authorities, tax practitioners, and academicians to improve the understanding of the determinants that affect tax compliance of e-commerce business taxpayers.
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