Nursyazlina Hamzah¹, Mohd Taufik Mohd Suffian^2*, Masetah Ahmad Tarmizi³ and Anjar Priyono⁴

¹INTEC Education College, 40450 Shah Alam, Selangor, MALAYSIA
^2,3Faculty of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA
⁴Department of Accounting, Faculty of Economics and Business, Universitas Islam Indonesia, Indonesia

ABSTRACT

Self-employed individuals, including life insurance agents, are among the main contributors to the revenue of Malaysia. The objective of this research study is to ascertain whether tax compliance behaviour among life insurance agents in Malaysia is influenced by tax knowledge, tax morale, and tax complexity. A sample of 425 respondents were selected for this research via questionnaires. Tax compliance behaviour was used as the dependent variable, while tax knowledge, tax morale, and tax complexity were employed as independent variables. Based on the structural measurement analysis, using Smart PLS version 4, tax knowledge and tax morale variables among life insurance agents in Malaysia are found to be positively associated with tax compliance behaviour, whereas the tax complexity variable is negatively associated with tax compliance behaviour. This study strengthens the body of literature by presenting empirical evidence regarding the relationship between the three determinants and tax compliance behaviour. This study provides practical advice for the government and policymakers regarding how to educate taxpayers, which includes life insurance agents, with the proper tax information, and to identify issues that can boost taxpayers’ morale. Hence, the findings can be used into university teaching to enhance the understanding of students on tax compliance in Malaysia.

Keywords: tax knowledge, tax morale, tax complexity, tax compliance behaviour, life insurance agents