The Mediating Effect of Ethical Perception on the Relationship between Tax Service and Tax Compliance Behavior Using Baron and Kenny and Bootstrapping Method

  • Swee Kiow Tan Faculty of Business and Finance, Universiti Tunku Abdul Rahman, Kampar, Perak, Malaysia
  • Mohd Fuad Mohd Salleh Faculty of Business and Accountancy, Universiti Selangor, Shah Alam, Selangor, Malaysia
  • Aza Azlina Md Kassim Faculty of Business and Accountancy, Universiti Selangor, Shah Alam, Selangor, Malaysia

Abstract

The main purpose of this study is to examine the mediating and indirect effects of
ethical perception in tax service on tax compliance behaviour. The study used crosssectional
survey design to collect primary data from individual taxpayers in the
southern region of Peninsular Malaysia. Data was analysed with Statistical Package
for the Social Science (SPSS). Results indicate that partial mediation was supported by
adopting Baron and Kenny method. However, there is almost no mediation by using
bootstrapping method. It showed that ethical perception of individual taxpayers differ
across individuals and these differences matter in significant ways particularly in their
tax compliance decisions. Therefore, IRB should provide better tax service to individual
taxpayers in order to enhance their tax ethics and compliance. This may increase tax
revenue and reduce the budget deficit without raising tax rates. This research results
provide valuable information for the IRB and it is useful for tax policy development.

Published
2020-02-12
How to Cite
TAN, Swee Kiow; MOHD SALLEH, Mohd Fuad; MD KASSIM, Aza Azlina. The Mediating Effect of Ethical Perception on the Relationship between Tax Service and Tax Compliance Behavior Using Baron and Kenny and Bootstrapping Method. Journal of Business Management and Accounting, [S.l.], v. 9, n. 2, p. 41-49, feb. 2020. ISSN 2231-9298. Available at: <http://e-journal.uum.edu.my/index.php/jbma/article/view/8724>. Date accessed: 17 feb. 2020. doi: https://doi.org/10.32890/jbma2019.9.2.8724.
Section
Articles