Decoding Corporate Tax Avoidance: What University Students Can Learn from Malaysian Public Firms?

Ruhaya Binti Rusni, Mohd Taufik Bin Mohd Suffian, Masetah Ahmad Tarmizi, Liyana Ab Rahman, Siti Marlia Shamsudin and Gilang Ramadhan
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Ruhaya Binti Rusni: Kalis & Co, D4-3-9, Solaris Dutamas, No. 1, Jalan Dutamas 1, 50480 Kuala Lumpur, MALAYSIA
Mohd Taufik Bin Mohd Suffian: Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA
Masetah Ahmad Tarmizi: Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA
Liyana Ab Rahman: Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA
Siti Marlia Shamsudin: Faculty Of Accountancy, Universiti Teknologi MARA, Perak Branch Tapah Campus, 35400 Tapah Road, Perak, MALAYSIA
Gilang Ramadhan: Faculty Of Technology, Policy And Management, Delft University Of Technology, Mekelweg5, 2628 CD Delft, NETHERLANDS

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 3s, 2784-2797

Abstract: Taxation is critical to sustaining government revenue and funding public services, thus future business and accounting professionals must examine corporate tax behavior. This study investigates the causes of tax evasion among Malaysian publicly traded companies from 2018 to 2022, providing both academically and pedagogically useful findings. The study, which focuses on company size, profitability, leverage, capital intensity, and inventory intensity, uses the Effective Tax Rate (ETR) as a proxy for tax avoidance. The study finds strong negative correlations between tax avoidance and both firm size and capital intensity, although profitability is favorably connected with tax avoidance strategies. These findings not only help to deepen our understanding of corporate financial conduct but also give important learning opportunities for university students studying tax strategy, business ethics, and fiscal policy. The study has implications for incorporating real-world tax methods into accounting and business curricula, as well as promoting critical thinking and ethical awareness among higher education students.

Date: 2025
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