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Cash economy: Tax evasion amongst SMEs in Malaysia

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 (Unpublished)

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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.

Item Type: Conference or Workshop Item (Plenary Papers)
Additional Information: 3334/56622
Uncontrolled Keywords: Cash economy,tax evasion, SMEs, Malaysia
Subjects: H Social Sciences > HJ Public Finance
H Social Sciences > HJ Public Finance > HJ2240 Revenue. Taxation
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button): Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User: Dr Azhar Mohamad
Date Deposited: 08 May 2017 14:49
Last Modified: 08 May 2017 14:49
URI: http://irep.iium.edu.my/id/eprint/56622

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