Impact of Tax Knowledge, Tax Compliance Cost, Tax Deterrent Tax Measures towards Tax Compliance Behavior: A survey on Self-Employed Taxpayers in West Malaysia

The aim of this paper is to study tax compliance behavior of self-employed taxpayers in West Malaysia and how tax knowledge, tax deterrence and tax compliance costs influence compliance behavior. Basically, those previous studies have merely focused on small and medium enterprises and less of them conduct the relevant research on self-employed population in Malaysia. Simple random sampling technique is adopted and there were 150 of self-employed taxpayers had randomly selected from West Malaysia to participate in this study. Questionnaire survey was conducted through online distribution method. Hypothesis testing is carried out with the implementation of multiple regression and Pearson correlation analysis. The result from regression analysis revealed that tax deterrence has a significant relationship with tax compliance behavior of self-employed taxpayers. However, the regression analysis indicates that tax knowledge and tax compliance costs are insignificant to compliance behavior. The findings in this paper are supported by other studies in literature reviews in chapter 2.