CULTURE INFLUENCE TOWARDS INTENTION OF TAX NON-COMPLIANCE AMONG SME OWNERS

Abstract

The importance of SME as backbone of Malaysia in generating national income is undoubtedly. However, little has been focused on culture influence as one of the determinants of tax non-compliance. With the multicultural society which having different culture, belief and value, it is important to examine culture influence towards tax non-compliance. Therefore, this study attempts to examine the influence of culture towards intention of tax non-compliance using the framework of Hofstede’s Cultural Dimensions Theory as basis of the study. The survey has collected data of 248 usable SME owners from northern region of Peninsular Malaysia. Findings reveal that power distance, individualism, masculinity, uncertainty avoidance and long-term orientation are significantly related with intention of tax non-compliance. Suggestions for policy makers and future researchers are also highlighted.