MALAYSIAN CODE OF CORPORATE GOVERNANCE AND TAX COMPLIANCE: EVIDENCE FROM MALAYSIA

  • Mohd Taufik Mohd Suffian Faculty of Accountancy, Universiti Teknologi MARA, Tapah Campus, Perak
  • Siti Marlia Shamsudin Faculty of Accountancy, Universiti Teknologi MARA, Tapah Campus, Perak
  • Zuraidah Mohd Sanusi Accounting Research Institute (ARI), Universiti Teknologi MARA
  • Ancella Anitawati Hermawan Department of Accounting, University of Indonesia

Abstract

In many countries, most of the government relies heavily on tax revenue to finance the government expenditures. In Malaysia, 78.8% of the source of revenue is from tax revenue and mainly contributed by the corporate income tax. The past literature has documented that good corporate governance could increase the firm's performances as well as tax compliance. Malaysia has published its own code of corporate governance in March 2000 and was revised in 2007, 2011 and 2012. Recently, in April 2016, the Security Commission released the recommended MCCG 2016. Thus, judging from the importance of maintaining tax collection, this paper aims to examine the importance of corporate governance in ensuring tax compliance among public listed companies in Malaysia. This study finds that corporate governance does influence tax compliance and multiple directorships is the most significant in influencing tax compliance.
Published
Dec 31, 2017
How to Cite
MOHD SUFFIAN, Mohd Taufik et al. MALAYSIAN CODE OF CORPORATE GOVERNANCE AND TAX COMPLIANCE: EVIDENCE FROM MALAYSIA. Management & Accounting Review (MAR), [S.l.], v. 16, n. 2, p. 157-180, dec. 2017. ISSN 2550-1895. Available at: <http://arionline.uitm.edu.my/ojs/index.php/MAR/article/view/665>. Date accessed: 05 aug. 2021. doi: http://dx.doi.org/10.24191/mar.v16i2.665.