Citation

Mohd Faizal, Sellywati and Palil, Mohd Rizal and Maelah, Ruhanita and Ramli, Rosiati (2019) The Mediating Effect of Power and Trust in the Relationship Between Procedural Justice and Tax Compliance. Asian Journal of Accounting and Governance, 11. pp. 1-11. ISSN 2180-3838, 2716-6060

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Abstract

Various factors that have been identified by researchers in Malaysia which may influence tax compliance behavior for example tax complexity; compliance costs; penalties; and tax knowledge. Yet, it is still unable to provide a solution to minimize tax non-compliance. Thus, this research identifies other factors, if any and their effect on Malaysian tax compliance behavior. The factors are procedural justice, trust and power. As far as known, no study in Malaysia examines the effect of these factors on tax compliance in a single study. Studies conducted outside Malaysia have found that procedural justice has a significant and positive relationship with tax compliance. In addition, there are also studies which described that procedural justice has the relationship with trust and legitimate power. Therefore, the objective of this study is to examine the relationship between procedural justice and compliance with the existing of trust and power as mediator. Structural Equation Model (SEM) is used to analyze the data that has been collected from 241 respondents. The findings suggest that procedural justice and trust have a positive relationship with tax compliance. Moreover, the bootstrapping approach found that trust could be a mediator in the relationship between procedural justice and tax compliance. In contrast, neither legitimate power nor coercive power could influence tax compliance and mediate the relationship between procedural justice and tax compliance.

Item Type:	Article
Uncontrolled Keywords:	Trust, procedural justice and tax compliance.
Subjects:	H Social Sciences > HG Finance > HG4301-4480.9 Trust services. Trust companies
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Suzilawati Abu Samah
Date Deposited:	21 Apr 2022 00:13
Last Modified:	21 Apr 2022 00:13
URII:	http://shdl.mmu.edu.my/id/eprint/9367

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