Volume 16 No. 2, December 2017
ARTICLE INFO
Article History:
Received: 9 August 2017
Accepted: 12 October 2017
Available online: 31 December 2017
MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 16 NO. 2, DEC 2017
Malaysian Code of Corporate Governance and Tax Compliance: Evidence from Malaysia
Mohd Taufik Mohd Suffiana, Siti Marlia Shamsudina, Zuraidah Mohd Sanusib and Ancella Anitawati Hermawanc
aFaculty of Accountancy, Universiti Teknologi MARA, Tapah Campus, Perak
bAccounting Research Institute (ARI), Universiti Teknologi MARA
cDepartment of Accounting, University of Indonesia
aFaculty of Accountancy, Universiti Teknologi MARA, Tapah Campus, Perak
bAccounting Research Institute (ARI), Universiti Teknologi MARA
cDepartment of Accounting, University of Indonesia
ABSTRACT
In many countries, the governments rely 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 published its own code of corporate governance in March 2000 and revised it 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.
Keywords: MCCG, tax compliance, corporate governance
Keywords: MCCG, tax compliance, corporate governance