The Impact of Tax Knowledge, Tax Penalties, and Tax Compliance towards SVDP in Pasir Salak

Azwanis Azemi (), Muhamad Haras Hasnawi Mohd Nas, Nur Maisarah Binti Mohd Nor, Syatila Che Saruji, Nur Aaina Aqilah Binti Jamaluddin and Nur Aqilah Hazirah Binti Mohd Anim
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Azwanis Azemi: Universiti Poly-Tech Malaysia, Institute of Professional Studies
Muhamad Haras Hasnawi Mohd Nas: Universiti Poly-Tech Malaysia, Institute of Graduate Studies
Nur Maisarah Binti Mohd Nor: Universiti Poly-Tech Malaysia, Institute of Professional Studies
Syatila Che Saruji: Universiti Poly-Tech Malaysia, Faculty of Business and Accountancy
Nur Aaina Aqilah Binti Jamaluddin: University of Malaya, Center for Foundation Studies
Nur Aqilah Hazirah Binti Mohd Anim: Islamic Science University of Malaysia, Faculty of Economics and Muamalat

A chapter in Proceedings of the International Conference on Cross- Disciplinary Academic Research 2025 - Track 2 Advances in Business & Economics, Social Science, Communications & Media (ICAR-T2 2025), 2026, pp 441-454 from Springer

Abstract: Abstract The purpose of this study was to determine impact Special Voluntary Disclosure Program (SVDP) participation in Pasir Salak, focusing on how tax compliance, tax knowledge and tax penalty might impact SVDP participation. The determinants that serve as the independent variables are tax compliance, tax knowledge and tax penalty and the dependent variable tested is SVDP Participation. The population of the study covers the individual stay in Pasir Salak. A total of 392 questionnaires collected and usable for further analysis using regression analysis outer model, measurement of reliability inner model and goodness-of-fit. As the results, the findings reveal that tax compliance, tax knowledge, and tax penalty demonstrated the positive relationship towards SVDP participation. Malaysia had implemented two SVDP to encourage tax compliance and expand the tax base. The first SVDP 1.0 was introduced by the Inland Revenue Board Malaysia (IRBM) on 2018. Following its success, a SVDP 2.0 was launched under the Budget 2022 on 2023.The SVDP is a tax initiative introduced by governments to encourage taxpayers to voluntarily disclose previously undeclared income or assets. First, Tax compliance had significantly to participation in the SVDP. Second, tax knowledge had significantly to participation in the SVDP. Third, tax penalty significantly to participation in the SVDP. Recommendation to Promoting taxes on outside urban areas with tax awareness campaigns, contribution government need encourage cooperation with the tax authorities for campaigns and free consultants and Creativity in artwork design can increase the rate of participation in the SVDP.

Keywords: Special Voluntary Tax Disclosure; Tax Compliance; Tax Knowledge; Tax Penalty (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-715-6_33

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