An integrative model in predicting corporate tax fraud

Nor Azrina Mohd Yusof and Ming Ling Lai

Journal of Financial Crime, 2014, vol. 21, issue 4, 424-432

Abstract: Purpose - – This paper aims to present an integrative model in predicting corporate tax fraud. Design/methodology/approach - – This paper is grounded on three theories, namely, the theory of reasoned action, theory of planned behaviour and the “Fraud Diamond Theory”. Findings - – By integrating these three theories, this paper proposes that individual cognitive factors, fraud diamond factors and organizational factors such as normative and control factors influence managers to commit corporate tax fraud. Practical implications - – Practically, the proposed integrative model enables the government and tax authority to understand on why corporate managers engage in corporate tax fraud. It will also allow them to devise practical methods and strategies to prevent the corporate managers to engage in tax fraud. Originality/value - – This study has merit that proposed an integrative model in predicting corporate tax fraud. Research on corporate tax fraud has been the subject of limited investigation; hence, this study contributes to the tax compliance literature by proposing an integrative model to study corporate tax fraud in a Malaysian tax setting. Future studies can be conducted to test the proposed integrative model in examining the circumstances of managers’ intention to commit corporate tax fraud.

Keywords: Theory of planned behaviour; Theory of reasoned action; Corporate manager; Fraud diamond theory; Tax fraud (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-03-2013-0012

DOI: 10.1108/JFC-03-2013-0012

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