International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
(Re-evaluation in-progress)

IJSTR >> Volume 9 - Issue 4, April 2020 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

Extension Of The TPB In Tax Compliance Behavior: The Role Of Moral Intensity And Customs Tax

[Full Text]



Murad Ali Ahmad Al-Zaqeba, Mosab Tayseer AL-Rashdan



Tax compliance, Theory of Planned Behaviour (TPB), survey, Structural Equation Modeling (SEM).



Tax compliance (TC) is one of the most long-standing issues in the world which becomes a concern to many governments. In Jordan, high percentage of individual taxpayers such as medical doctors, engineers, and lawyers are not complying with tax law. The purpose of this study is to investigate the factors that affect the TCB (TCB) of high-income individual taxpayers in Jordan. This study extends the Theory of Planned Behaviour (TPB) with some selected variables namely moral intensity, customs tax, and fairness. The population of this study is the high-income individual taxpayers working as medical doctors, engineers, and lawyers in Jordan. A stratified random sampling technique was used in this study. A total of 485 complete and usable responses were collected using a questionnaire survey. The data was analysed using Statistical Package for Social Science (SPSS) and Smart Partial Least Square (PLS). The findings showed that moral intensity is the most important predictor of BI followed by attitude, perceived behavioural control and SN. The findings showed that complexity affected negatively the attitude toward tax law while fairness has a positive and significant effect on attitude toward tax law. The behavioural intention affected positively the TCB. Customs tax moderated negatively the effect of attitude on behavioural intention.



[1] M. A. L. I. A. Al-Zaqeba, S. A. Hamid, and I. Muhammad, “Tax compliance of individual taxpayers: a systematic literature review,” Proc. IIER Int. Conf., no. April, pp. 42–52, 2018.
[2] M. T. Al-Rashdan, I. Bin Rejab, and M. M. Alzubi, “the Moderating Effect of Demographic Factors in the Usage of E-Banking Services Among,” Int. J. Manag. Commer. Innov., vol. 7, no. 1, pp. 95–105, 2019.
[3] M. T. Al-Rashdan, I. Bin Rejab, and M. M. Alzubi, “Factors Affects the Use of E-Banking Services Among Jordanian E-Banking Services Among,” Int. J. Manag. Commer. Innov. ISSN, vol. 7, no. 1, pp. 92–94, 2019.
[4] A. F. Alshir’ah, H. Abdul-Jabbar, and R. S. Samsudin, “Determinants of sales tax compliance in small and medium enterprises in Jordan: A call for empirical research,” Small, vol. 10, p. 49, 2016.
[5] F. Alasfour, M. Samy, and R. Bampton, “The determinants of tax morale and tax compliance: Evidence from Jordan,” Adv. Tax., 2016.
[6] K. S. Aljaaidi, N. A. Abdul Manaf, and S. S. Karlinsky, “Tax Evasion as a Crime: A Survey of Perception in Yemen,” Int. J. Bus. Manag., 2011.
[7] L. H. A. Al-Ttaffi and H. Abdul Jabbar, “A conceptual framework for tax non-compliance studies in a Muslim country: A proposed framework for the case of Yemen,” Int. Postgrad. Bus. J., vol. 7, no. 2, pp. 1–16, 2015.
[8] N. Saad, “Fairness Perceptions and Compliance Behaviour : The Case of Salaried Taxpayers in Malaysia after Implementation of the Self- Assessment System,” vol. 8, no. 1, p. 2010, 2009.
[9] M. Smart, “The application of the theory of planned behaviour and structural equation modelling in tax compliance behaviour: a New Zealand study,” 2012.
[10] S. Abdul Hamid, “Tax Compliance Behaviour of Tax Agents : A Comparative Study of Malaysia and New Zealand,” University of Canterbury, New Zealand, 2014.
[11] V. Venkatesh, M. Morris, G. Davis, and F. Davis, “User Acceptance of Information Technology: Toward a Unified View,” MIS Q., vol. 27, no. 3, pp. 425–478, 2003.
[12] I. Ajzen, “The theory of planned behavior,” Organ. Behav. Hum. Decis. Process., 1991.
[13] L. Marzucco, G. Marique, F. Stinglhamber, K. De Roeck, and I. Hansez, “Justice and employee attitudes during organizational change: The mediating role of overall justice,” Rev. Eur. Psychol. Appl., vol. 64, no. 6, pp. 289–298, 2014.
[14] L. B. Gobena and M. Van Dijke, “Power, justice, and trust: A moderated mediation analysis of tax compliance among Ethiopian business owners,” J. Econ. Psychol., vol. 52, pp. 24–37, 2016.
[15] J. A. Colquitt and K. P. Zipay, “Justice, Fairness, and Employee Reactions,” Annu. Rev. Organ. Psychol. Organ. Behav., 2015.
[16] A. Webb et al., “Factors Affecting Goal Difficulty and Performance When Employees Select Their Own Performance Goals: Evidence from the Field,” J. Manag. Account. Res. Am. Account. Assoc., vol. 22221, no. 209, pp. 209–232, 2010.
[17] N. Saad, “Tax Knowledge, Tax Complexity and Tax Compliance: Taxpayers’ View,” Procedia - Soc. Behav. Sci., vol. 109, no. 1, pp. 1069–1075, 2014.
[18] M. Richardson and a. . Sawyer, “A taxonomy of the tax compliance literature: Further findings, problems and prospects.,” Aust. Tax Forum, 2001.
[19] K. Isa, “Tax complexities in the Malaysian corporate tax system: minimise to maximise,” Int. J. Law Manag., vol. 56, no. 1, pp. 50–65, 2013.
[20] M. H. Kayali, N. Safie, and M. Mukhtar, “Adoption of Cloud Based E-Learning: A Systematic Literature Review of Adoption Factors and Theories,” J. Eng. Appl. Sci., vol. 11, no. 8, pp. 1839–1845, 2016.
[21] M. Kayali, N. Safie, and M. Mukhtar, “The Effect of Individual Factors Mediated by Trust and Moderated by IT Knowledge on Students ’ Adoption of Cloud Based E -learning,” Int. J. Innov. Technol. Explor. Eng., vol. 9, no. 2, 2019.
[22] S. Alaaraj, Z. A. Mohamed, and U. S. Ahmad Bustamam, “External Growth Strategies and Organizational Performance in Emerging Markets: The Mediating Role of Inter-Organizational Trust,” Rev. Int. Bus. Strateg., vol. 28, no. 2, pp. 206–222, 2018.
[23] S. Alaaraj, “Knowledge Management Capability, Trust, and Performance of Manufacturing Companies in Emerging Economies,” in Proceedings of 177 th The IIER International Conference, 2018, pp. 1–9.
[24] U. Dulleck, J. Fooken, C. Newton, A. Ristl, M. Schaffner, and B. Torgler, “Tax compliance and psychic costs: Behavioral experimental evidence using a physiological marker,” J. Public Econ., vol. 134, pp. 9–18, 2016.
[25] B. H. Malkawi and H. A. Haloush, “The case of income tax evasion in Jordan: symptoms and solutions,” J. Financ. Crime, 2008.
[26] S. M. A. Al-Naimat, “Theoretical and analytical study of tax law in Jordan according to the: income tax and sales tax and its relationship with revenues and tax evasion,” Int. J. Financ. Res., vol. 4, no. 3, p. 107, 2013.
[27] A. F. Alshira’h and H. Abdul-Jabbar, “The Effect of Tax Fairness on Sales Tax Compliance among Jordanian Manufacturing SMEs,” Acad. Account. Financ. Stud. J., 2019.
[28] S. Alaarj, Z. A. Mohamed, and U. S. B. A. Bustamam, “Knowledge Management Capabilities, Environment Uncertainties; Their Influence on Organizational Performance,” in The 2nd International Conference on Islamic Perspective of Accounting, Finance, Economics and Management (IPAFEM), 2016.
[29] S. Alaarj, Z. Abidin-Mohamed, and U. S. B. A. Bustamam, “Mediating Role of Trust on the Effects of Knowledge Management Capabilities on Organizational Performance,” Procedia - Soc. Behav. Sci., 2016.
[30] S. Alaarj, Z. A. Mohamed, and U. S. A. Bustamam, “Do Knowledge Management Capabilities Reduce the Negative effect of Environment Uncertainties on Organizational Performance? A Study of Public Listed Companies in Malaysia,” Int. J. Econ. Res., vol. 14, no. 15, pp. 443–456, 2017.
[31] A. Jameel and M. A.-A. Ahmad, “Determine some factors that affect to adoption of e-commerce among small and medium enterprises in Erbil,” Polytech. J., vol. 8, no. 1, 2018.
[32] A. S. Jameel and A. R. Ahmad, “Leadership and Performance of Academic Staff in Developing Countries,” 2020.
[33] A. Jameel, M. Abdul-Karem, and N. Mahmood, “A Review of the Impact of ICT on Business Firms,” Int. J. Latest Eng. Manag. Res., vol. 2, no. 01, pp. 15–19, 2017.
[34] P. Jimenez and G. S. Iyer, “Tax compliance in a social setting: The influence of social norms, trust in government, and perceived fairness on taxpayer compliance,” Adv. Account., vol. 34, pp. 17–26, 2016.
[35] F. D. Davis, “Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology,” Source MIS Q., vol. 13, no. 3, pp. 319–340, 1989.
[36] S. Benk, A. F. Çakmak, and T. Budak, “An investigation of tax compliance intention: A theory of planned behavior approach,” Eur. J. Econ. Financ. Adm. Sci., 2011.
[37] J. O. Alabede, Z. Z. Ariffin, and K. M. Idris, “Individual taxpayers ’ attitude and compliance behaviour in Nigeria : The moderating role of financial condition and risk preference,” J. Account. Tax., 2011.
[38] D. D. Bobek, A. M. Hageman, and C. F. Kelliher, “Analyzing the Role of Social Norms in Tax Compliance Behavior,” J. Bus. Ethics, 2013.
[39] A. M. Tallaha, Z. A. Shukor, and N. S. A. Hassan, “Factors Influencing E-Filing Usage Among Malaysian Taxpayers: Does Tax Knowledge Matters?,” J. Pengur. (UKM J. Manag., vol. 40, 2014.
[40] D. Peggy, “Tax Compliance in a Social Setting: The Influence of Norms, Perceptions of Fairness, And Trust in Government on Taxpayer Compliance,” UNIVERSITY OF NORTH TEXAS, 2013.
[41] A. R. Peslak, R. I. Frank, D. Colton, K. A. Grant, and G. Ury, “Ethics and Moral Intensity : An Analysis of Information Technology and General Education Students Member Services,” Inf. Syst. Educ. J., vol. 5, no. 26, pp. 1–11, 2007.
[42] M. H. Kayali, N. Safie, and M. Mukhtar, “Literature Review of Cloud Based E-learning Adoption by Students: State of the Art and Direction for Future Work,” IOP Conf. Ser. Mater. Sci. Eng., vol. 160, no. 2016, pp. 1–8, 2016.
[43] S. Alaarj, A. M. Zainal, and U. Bustamam, “The Effect of Knowledge Management Capabilities on the Performance of Malaysian Large-Scale Organizations: An Empirical Study,” Adv. Glob. Bus. Res., vol. 12, no. 1, pp. 1024–1038, 2015.
[44] Hair, T. M. Hult, C. M. Ringle, and M. Sarstedt, A primer on partial least squares structural equation modeling, 2nd ed. Thousand Oakes, 2017.
[45] E. Kirchler and I. Wahl, “Tax compliance inventory TAX-I: Designing an inventory for surveys of tax compliance,” J. Econ. Psychol., vol. 31, no. 3, pp. 331–346, 2010.
[46] S. Alaaraj, “Knowledge Management Capability , Trust , and Performance of Manufacturing Companies in Emerging Economies,” Int. J. Manag. Appl. Sci., vol. 4, no. 8, pp. 45–53, 2018.
[47] S. Alaarj, Z. A. Mohamed, and U. S. A. Bustamam, “The Effect of Knowledge Management Capabilities on Performance of Companies : A Study of Service Sector,” Int. J. Econ. Res., vol. 14, no. 15, pp. 457–470, 2017.
[48] S. Alaarj, Z. A. Mohamed, and U. S. A. Bustamam, “The Mediating Role of Inter-Organizational Trust between External Growth Strategies and Organizational Performance of Malaysian Companies,” in Advance in Global Business Research, 2016, vol. 13, no. 1, pp. 26–38.
[49] T. C. Lau, K. L. Choe, and L. P. Tan, “The moderating effect of religiosity in the relationship between money ethics and tax evasion,” Asian Soc. Sci., vol. 9, no. 11, pp. 213–220, 2013.