Tax compliance is a crucial factor affecting the revenue in any government. Revenues are collected for financing the goods and services provided to their citizens and businesses. Constructs such as tax audit, tax penalty, complexity of laws, tax fairness, and peer influence, are important components that may influence tax compliance behaviour. The aim of this study is to conduct verification of tool via exploratory factor analysis (EFA). This questionnaire was modified from previous studies which consists of 32 items and distributed online to the Sales Tax and Service Tax (SST) registered persons. 120 responses were collected for EFA in which each construct was done individually. The findings revealed that all the constructs had one dimension or component. Each item in the construct had a factor loading of > 0.5 while Bartlett’s Test of Sphericity was < 0.05. The Kaiser-Meyer-Olkin (KMO) Measure of Sampling Adequacy was more than 0.6 for all constructs, which meant the sample size was sufficient and appropriate. All items were reliable as Cronbach’s Alpha result was above 0.7. This study discovered a definitive tool to evaluate the effectiveness of economics and non-economics constructs towards SST compliance.
Abdul-Jabbar, H. (2009). Income tax non-compliance of small and medium enterprises in Malaysia: Determinants and tax compliance costs (Doctoral dissertation, Curtin University).
Al Zeer, I., Alkhatib, A. A., & Alshrouf, M. (2019). Determinants of organisational commitment of universities’ employees. International Journal of Academic Research in Accounting, Finance and Management Sciences, 9, 136–41. https://doi.org/10.6007/IJARAFMS/v9?i1/519.
Alm, J. (2018). What motivates tax compliance? Journal of Economic Surveys, 00(0), 1–36.
Andreoni, J., Erard, B., & Feinstein, J. (1998). Tax compliance. Journal of Economic Literature, 36, 818-860.
Anuar, N., Muhammad, M. M., & Awang, Z (2023). Development and validation of critical reading intention scale (CRIS) for university students using exploratory and confirmatory factor analysis. Asian Journal of University Education (AJUE), 19(1), 39-52.
Awang, Z., Afthanorhan, A., Lim, S. H., & Zainudin, N. F. S. (2023). SEM made simple 2.0. a gentle approach of structural equation modelling. Penerbit: Universiti Sultan Zainal Abidin, Kuala Nerus. www.penerbit.unisza.edu.my.
Awang, Z., Lim, S. H., & Zainudin, N. F. S. (2018), Pendekatan Mudah SEM-Structural Equation Modelling. Bandar Baru Bangi: MPWS Rich Resources.
Bidin, Z., Marimuthu, M., Derashid, C., Idris, K., & Ahmad, N. (2016). Determinants of attitude toward proposed good and services tax among business communities in Malaysia. International Review of Management and Marketing, 6, 193-197.
Braithwaite, V. (2001). The community hopes, fears, and actions survey: Goals and measures (Working Paper No. 2). Centre for Tax System Integrity, the Australian National University.
Chander, P., & Wilde, L.L. (1992). Corruption in Tax Administration. Journal of Public Economics, 49(3), 333-349.
Devos, K. (2013). Role of sanctions and other factors in tackling international tax fraud. Common Law World Review, 42, 1-22.
Dharmayanti, N., Yetmi, Y. S., & Wulandari, D. A. (2023). Assessing taxpayer behavior commitment in mattering tax compliance: The moderating of tax ethics. International Journal of Current Science Research and Review, 6(7), 4497-4507.
Faridy, N., Copp, R., Freudenberg, B., & Sarker, T. (2014). Complexity, compliance costs and non-compliance with VAT by small and medium enterprises in Bangladesh: Is there a relationship. Australian Tax Forum, 29, 281-329.
Field, A. (2017). Discovering Statistics Using IBM SPSS Statistics. (5th edition). USA: SAGE Publications.
Fitriana, N., Hutagalung F.D., Awang Z., & Zaid, S.M. (2022). Happiness at work: A cross-cultural validation of happiness at work scale. PLoS ONE, 17(1): e0261617.
Hair, J. F., Babin, W. C., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis. (6th edition). New Jersey: Pearson Prentice Hall International.
Hair, J. F., Black, W.C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis (7th edition). New Jersey: Prentice Hall.
Hayat, N., Salameh, A. A., Al Mamun, A., Ali, M. H., & Mohamed Makhbul, Z. K. (2022). Tax compliance behavior among malaysian taxpayers: A dual-stage PLS-SEM and ANN analysis. SAGE Open, 12, 1-14.
Isa, K., & Pope, J. (2011). Corporate taxpayers’ perceptions of the self-assessment system in Malaysia. 23rd Australasian Tax Teachers Association Conference, held in Melbourne, 19-21 January.
Kasipillai, J., & Jabbar, A. H. (2013). Tax compliance attitude and behaviour: Gender and ethnicity differences of Malaysian taxpayers. The Malaysian Accountant, 7, 1-7.
Le, H. T., Tuyet, V. T., Hanh, C. T., & Do, Q. H. (2020). Factors affecting tax compliance among small- and medium-sized enterprises: Evidence from Vietnam. Journal of Asian Finance, Economics and Business, 7, 209-217.
Lee, H. L., Alifiah, M. N., & Loo, E. C. (2019) A proposed GST compliance model of GST registered person in Malaysia. Asia International Conference 2018, 8(1), 200-206.
Long, S. B., & Swingen, J. A. (1991). Taxpayer compliance: Setting new agendas for research: Review of taxpayer compliance: Vol. 1, An Agenda for Research; Taxpayer Compliance: Vol. 2, Social Science Perspectives, by J. A. Roth, J. T. Scholz, and A. D. Witte]. Law and Society Review, 25(3), 637–683.
Murphy, K. (2008). Enforcing tax compliance: To punish or persuade? Economic Analysis and Policy, 38, 113-135.https://doi.org/10.1016/S0313-5926(08)50009-9.
Azmi, N. P. N. A., Tarmuji, I., Hamid, N. A., Rasit, Z. A., & Rashid, N. (2020). Tax compliance motives among grab car drivers in Malaysia. Journal of Critical Reviews, 7(11), 446-451.
Obaid, M. M., Ibrahim, I., & Mat Udin, N. (2020). Determinants of SMEs tax compliance in Yemen: A pilot investigation. IOSR Journal of Humanities and Social Science, 15, 64–75.
Ojo, A. O., & Shittu, S. A. (2023). Value Added Tax compliance, and Small and Medium Enterprises (SMEs): Analysis of influential factors in Nigeria. Cogent Business and Management, 10, 1-25.
Palil, M. R. (2010). Tax knowledge and tax compliance determinants in self-assessment System in Malaysia. PhD Thesis. The University of Birmingham.
Pallant, J. (2020). SPSS survival manual: A step by step guide to data analysis using SPSS (7th edition). New York, NY: Open University Press.
Rahlin, N. A., Bahkia, A. S., Awang, Z., Razak, R. A., & Idris, S. (2021). A step by step of content validity assessment process on approach towards safety knowledge, safety climate and SMEs safety performance framework. J. Contemp. Issues Bus. Gov, 27(2), 6253-6271.
Remali, A. M., Ramli, K., Nordin, N. K., Hamdan, N. A., & Lutfi, N. I. A. (2020). Tax Compliance: taxpayers’ view (perception). Global Business and Management Research, 12(4).
Saad, N. (2011). Fairness perceptions and compliance behaviour: taxpayers judgments in self- assessment environments (Unpublished doctoral thesis, University of Canterbury).
Saad, N. (2014). Tax knowledge, tax complexity and tax compliance: Taxpayers’ view. Procedia-Social and Behavioral Sciences, 109, 1069-1075.
Sinnasamy, P., Bidin, Z., & Syed-Ismail, S. S. (2015). A proposed model of non-compliance behaviour on excise duty: A moderating effects of tax agents. Procedia - Social and Behavioral Sciences, 299-305.
Slemrod, J. (2004). Small business and the tax of small and medium size businesses in H.J. Aaron and J. Slemrod (eds), The Crisis in Tax Administration, Brookings Institution Press, Washington, D. C, pp: 69-123.
Tee, L. S., & Bidin, Z. (2020). Sales tax compliance and its determinants in Malaysia. Advanced International Journal of Banking, Accounting, and Finance, 2(5), 1-20.
Uvaneswaran, S. M., Zemen, T., & Dessie, E. S. M. (2020). Behaviour of business class taxpayers on tax compliance in Ethiopian revenue administration. American Journal of Economics and Business Management.
Woodward, L., & Tan, L. M. (2015). Small business owners’ attitudes toward GST compliance: A preliminary study. Australian Tax Forum, 30(2), 517-550.
Woodward, L., & Tan, L. M. (2017). GST compliance in New Zealand: A comparative study of taxpayers in the primary and trades sector. UNSW Business School. Australasian Tax Teachers Association (ATTA). Conference Papers.
Ya’u, A., & Saad, N. (2019). The moderating role of trust in the relationship between fairness perceptions and income tax voluntary compliance in Nigeria. International Journal of Research in Business, Economics and Management, 3(4), 39-55.
Yee, C. P., Moorthy, K., & Soon, W. C. K. (2017). Taxpayers’ perceptions on tax evasion behaviour: An empirical study in Malaysia. International Journal of Law and Management, 59(3), 413–429.
Yong, M. C., Kasipillai, J., & Sarker, A. (2017). GST compliance and challenges for SMEs in Malaysia. eJournal of Tax Research, 15(3), 457-489.
