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| DC Field | Value | Language |
|---|---|---|
| dc.contributor.advisor | Mohd Azlan Shah Zaidi, Prof. Dr. | |
| dc.contributor.author | Razieh Tabandeh (P53014) | |
| dc.date.accessioned | 2023-10-10T09:06:28Z | - |
| dc.date.available | 2023-10-10T09:06:28Z | - |
| dc.date.issued | 2016-01 | |
| dc.identifier.other | ukmvital:80429 | |
| dc.identifier.uri | https://ptsldigital.ukm.my/jspui/handle/123456789/485842 | - |
| dc.description | Shadow economy or underground economy is a crucial issue facing most countries in the world. It brings detrimental effects such as losses in public revenues, creating ��bad equilibrium�� in economy and increasing poverty in some countries. In particular, tax evasion is a part of shadow economy that brings negative effect on an economy. In the presence of tax evasion, the government cannot allocate sufficient revenue for social programs or provide desirable social services. Furthermore, tax evasion causes failure in the fair distribution of income, causes the accumulation of wealth for special groups and thus, leads to the increased political and social tensions and failure in the implementation of government policies. The share of taxes in total public revenues in Malaysia is relatively high. As such, if taxation system does not work effectively, many people will use this opportunity to avoid paying tax, and thus, tax evasion will be popular. Since the shadow economy and tax evasion have negative impact on an economy, investigating these topics are important for a country to formulate appropriate policies. In particular, to avoid misinformed decisions and to devise suitable policies to decrease the level of tax evasion, identifying causes of tax evasion, measuring the size of tax evasion and identifying the relative importance of each variable on tax evasion are important for policy makers. Although there are various studies in the area of the shadow economy and tax evasion, there is still a lack of research on several aspects of these topics. Realizing the lack of studies in these topics for developing countries, the present study attempts to fill the gaps in previous studies by investigating these phenomena for Malaysia. The present study seeks to achieve four objectives. The first objective is to estimate the size of the shadow economy of Malaysia by applying Multiple Indicators and Multiple Causes (MIMIC) method. From the MIMIC estimations, relationship between the shadow economy and its causes and indicators can be inferred. The second objective of this study is to measure the size of tax evasion which will be computed from the estimation of the shadow economy. The third objective of the study is to forecast the size of tax evasion by applying the Artificial Neural Network (ANN) method. Finally, the fourth objective is to determine the relative importance of each variable on tax evasion using the same ANN method. The result of applying the MIMIC method reveals that the average size of the shadow economy in Malaysia is about 37.23% of GDP during 1965-2013. Furthermore, estimation of the MIMIC method reveals that tax burdens, government regulations, unemployment rate and income inequality have positive and significant effects on the shadow economy. On the other hand, there are negative relationships between the income of taxpayers and trade openness with the shadow economy. Self-employment and inflation rate, however, do not have any significant effects on the shadow economy. The study also find that the size of tax evasion in Malaysia decreased from 8.28% of GDP in 1965 to 2.66% of GDP in 2013, and its average size during this period was about 6.21% of GDP. The results of the forecasting of tax evasion using ANN method show that the size of tax evasion is going to increase in the future. The most important factors (ranked in order of importance) to increase the level of tax evasion among other causes respectively are indirect taxes, the limitation of trade openness, direct taxes, the income of taxpayers, and government regulations. The findings give some insights to policy makers on ways to handle tax evasion in the future.,Ph.D. | |
| dc.language.iso | eng | |
| dc.publisher | UKM, Bangi | |
| dc.relation | Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan | |
| dc.rights | UKM | |
| dc.subject | Informal sector (Economics) -- Malaysia | |
| dc.subject | Tax evasion -- Malaysia | |
| dc.subject | Neural network | |
| dc.subject | Universiti Kebangsaan Malaysia -- Dissertations | |
| dc.subject | Dissertations, Academic -- Malaysia | |
| dc.title | Shadow economy and tax evasion in Malaysia : structural equation modeling and artificial neural network analysis | |
| dc.type | Theses | |
| dc.format.pages | 213 | |
| dc.identifier.callno | HD2341.T333 2016 tesis | |
| dc.identifier.barcode | 002062 (2016) | |
| Appears in Collections: | Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan | |
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| File | Description | Size | Format | |
|---|---|---|---|---|
| ukmvital_80429+SOURCE1+SOURCE1.0.PDF Restricted Access | 409.37 kB | Adobe PDF |  View/Open |
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